A constraint is a limitation, imposed by outside circumstances or by ourselves, that materially affects our ability to do something limits a person or an organization in achieving their goal.
By managing organization as a whole, instead of separate parts, understand how everything is connected within the organization, understating dominant influences that determine conditions (production output, inventory, sales ect…) by identifying critical constraint and managing everything around the constraint efficiently and effectively transforms potential into energy.
By making a constraint beautiful, implies seeing it as an opportunity, not punitive restriction, and using it as a stimulus to see a new or better way of achieving organizational goals.
When we face the problem of managing finite resources, synergy and synchronization is of fundamental importance to transform its potential ; maximize throughput therefore optimize its performance; freeing up energy that otherwise would be lost.
Constraints fall into four different groups:
- Constraints of foundation (where we are limited in something that is usually seen as a foundation element for success); internet selling does but provide the buyers to touch and feel. Policy decision such as aligning product development around specific operating system.
- Constraints of resource such as facilities, manufacturing resources, people ect,,; A constraint of resource relates to what generates output.
- Constraints of method (where we are limited by having to do something in a certain way). Typically entrenched business processes based on ERP system ways of working that influence effective exploitation of resources and time.
- Constraints of time (where we are limited in the amount of time we have to do something);
EXAMPLES OF CONSTRAINTS
- Machine capacity
- Austerity ; Government budget deficit or debt to GDP ratio