| Q. 16 |
Isn't it good enough to overcome just the existing constraint? |
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| Ans. |
In TOC, overcoming the current constraint carries the expectation of seeing significant bottom line improvement toward achieving an organization's goal. If the next constraint poses a significant and immediate threat to the well-being of an organization, it must be addressed quickly in order to sustain the growth of the organization. Otherwise, we invariably take actions to trim costs or restructure. For example, exposing excess capacity through a constraint internal to an organization may shift the constraint externally into the market, in its vendors or suppliers. The inability to make use of this excess capacity by effective market segmentation and generating more sales, will cause damage to the organization in the short term. Organizations are fundamentally created to do more than just reduce cost and inventory. |
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