BUSINESS PROCESS  OPTIMIZATION

INTRODUCTION
Theory of Constraints (TOC) is an effective management approach that since 1975 has provided a methodology and proven solutions for significant improvement of systems and organizations. CBT is an extensive body of conceptual and practical knowledge and know-how covering all aspects of business management. Theory of Constraints offers practical applications for managing logistics systems, sales, marketing, and people management, which for nearly forty years has consistently persistently driving companies and organizations around the world to breakthrough levels of performance.
 

The Theory of Constraints was created by Dr. Eli Goldratt. He has dedicated his life to finding a process and
and developing tools that would allow managers to get on the path of a true Process of On-Going Improvement (POOGI). The methodology and thought processes he developed are aimed not only at systems managers, but also at everyone who wants to make a difference in their lives, and especially young people, with the aim of developing their especially young people, with the aim of developing their thinking and communication skills. 

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Traditional approach. Most existing theories focus on process improvement. It is assumed that if the processes within the system are optimal, the performance of the whole system is maximized. The DISADVANTAGE of this approach is the following: the factor of interaction and interdependence of processes within the system is very poorly taken into account or not taken into account at all.

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TOC approach. A company is first and foremost a system, not just a set of processes. The correct interaction between the elements of the system will determine the success of the company. Moreover, systems are considered as chains or even as an interweaving of chains, and the stable work of the system depends on the work of the "weakest link". Therefore, no matter how much the processes in the system are improved, there will be no noticeable improvement without strengthening the weakest link. The weak link is the limitation of the system. CBT is essentially a methodology for managing such limitations.

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Origins of TOC

• One of the brightest pioneers of the study of companies as unified systems was William Edwards Deming, (14.10.1900 - 20.12.1993), also known as Edward Deming, an American scientist, statistician and consultant on the theory of quality management. 

• Deming is best known for his innovative proposals for enterprise reorganization, widely used in Japan and other countries under the name "lean manufacturing". Edwards Deming's philosophy is summarized as follows:

• "Deming taught that by adopting appropriate management principles, organizations can improve quality and simultaneously reduce costs (by reducing waste, rework, staff attrition, and litigation, while increasing customer loyalty). The key is to practice continuous improvement and to think of manufacturing as a system, not bits and pieces."