The theory of constraints is an approach to system improvement, which places especial emphasis on obstacles preventing the organization from achieving its aims. Constraints can take any form – administrative barriers to financial limitations. The theory posits that in order for improvement to transpire, all preventing factors should be eliminated (Trojanowska & Dostatni, 2017). In order to do so, it follows a strict set of pre-defined steps.
Firstly, all constraints in a project have to be identified and understood. Secondly, the manager should make a decision on the proper way of the constraint’s exploitation. Once it is done, all other components of the system should be adjusted to the previously identified strategy of exploiting the constraint. The fourth step is to increase the productivity of the constraint by directing investment at it. The final step is to reassess the constraint and revert back to step one, in case the problem is not resolved.
This method would be beneficial to project management because it provides the manager with the most effective improvement system. Research indicates that the theory of constraints is extensively used in modern business settings, specifically in companies that seek to optimize manufacturing of their products (McCleskey, 2020). Manufacturing processes are extremely dependent on the smooth performance of all components of the system, as a small inconsistency influences the overall output.
The second reason why the theory benefits project management is that is universal. Regardless of the nature of the system, it can be divided into separate elements. The element that shows the weakest performance is automatically identified as a constraint. Then, the manager has a specific course of action that will guide them in resolving the problem. As long as the organization employs a structured process, the theory of constraints is fully applicable.
References
McCleskey, J. A. (2020). Forty years and still evolving: The theory of constraints.American Journal of Management, 20(3), 65-74.
Trojanowska, J., & Dostatni, E. (2017). Application of the theory of constraints for project management. Management and Production Engineering Review, 8(3). 87-95.