Application of specific tools of the Theory of Constraints – a case study

Abstract

The Theory of Constraints is a management tool for continuously improving corporate performance. In the USA, it has been very successful, above all due to the contribution of a comprehensive assessment of the issues of managerial control. Its development has also been taking place in the Czech Republic. This paper aims to present the Theory of Constraints tools and then apply some of them to a specific enterprise in logistics activities. The findings in terms of detecting and widening the bottleneck afterwards should exert a positive impact on corporate performance. Current Reality Tree, Conflict Diagram and Future Reality Tree are applied in the paper to eliminate undesirable effects that prevent the enterprise from increasing its performance. Besides providing this specific enterprise with concrete solutions to identified issues, this study aims at depicting the procedure for implementing the methods of the Theory of Constraints, including specific results and benefits of the suggested solutions, along with the quantification of their costs, savings and throughput.