Is Management by Constraint Applicable to the Improvement of Team Performance?

Abstract

In operations management, the attention of management should be focused on a constraint that limits the performance of a system. When applying the Theory of Constraints, the mistake many managers will make is to firstly focus on a productivity improvement strategy around a capacity constraint. However, it is not necessary to be considered capacity constraints preferentially, but necessary to be considered the various other constraints. This paper addresses the applicability of the theory of constraints (TOC) in improving the performance of a team organization. In particular, we discuss the performance improvement strategies policy constraints factors, discuss performance improvement measures in the case to be considered policy and strategic factors. This paper argues that it is needed to redefine the concept of constraint in order to improve the performance in a team organization. We then suggest a methodology to identify and manage ‘the constraint’ Through a hypothetical example, this paper demonstrates a three-step problem solving framework for improving the performance of a team organization.