Constraints Management

Synthesis


The Constraints Management, or the Theory of Constraints, is an approach based on the distinction between the critical resources - the constraints - and  the other non-critical resources of an organization. It became famous thanks to the "industrial thriller" The Goal, written by E. Goldratt and sold at over 7 million copies and translated into 29 languages.

An independant study collected results achieved by companies which implemented Theory Of Constraints throughout the world. It estimates that on average results are:

  • a lead time reduction by 70%;

  • a reduction of production lead time by 65%;

  • an improvement of On-Time Delivery by 44%;

  • A Work-In-Progress reduction by 49%;

  • A Throughput improvement by 63%.

This inquiry puts forward the fact that Constraints Management improves the operationnal performance to the same extent as Just-In-Time approaches, derived from Toyota Production System. The reason is that both of them improve the production flow and strongly reduce the Work-In-Process, and thus create an environment in which one can identify and eliminate the various forms of waste.

However, one of the main caracteristics of Constraints Management is its impact on Throughput since it can increase by 63%. It is due to the focus on the elements limiting the company performance (called "constraints") and the emphasis on excess capacity (non-constraint / non-bottleneck) which often can be used to generate more income.

This very study shows the large variety of Constraints Management users : small, medium and large series, manufacturing industries and processes, small and large companies.

We can estimate that several thousands manufacturers use this approach today : 3M, Baxter, Ford Motor Company, General Electric, General Motors, ITT, Johnson Controls, Lucent Technologies, Pratt & Wittney, Procter & Gamble, National Semi-Conductors, Samsonite, United Airlines, Whirlpool...

We are recognized experts of this approach, notably in french-speaking countries. Marris Consulting founder published one of the first books on this subject 20 years ago, and led numerous missions to implement Constraints Management. A new edition of this book is to be published soon. These very projects we managed confirm that Constraints Management transforms the operationnal performance and generate impressive economic results.

 

Contact Marris Consulting

 To learn more about the approach and its results

A website dedicated to Philip Marris' book:

(Fr) Management Par les Contraintes

 

References

The World of the Theory of Constraints, V. J. Mabin and S.J. Balderstone, APICS Series on Constraints Management / St. Lucie Press, Etats-Unis, 2000.

Le But ; un processus de progrès permanent, Eliyahu Goldratt & Jeff Cox, AFNOR, France, 1986-2002, or in English The Goal, North River Press, Etats-Unis, 1984-2004.

Management Par les Contraintes, Philip Marris, Editions d'Organisation, France, 1994-2000.


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