Theory of Constraints Research Paper Example | Topics and Well Written Essays - 750 words - 1

Theory of Constraints - Research Paper Example Once the organization defines its goals and there is agreement on how to evaluate the achievements toward the identified goals, it possible to apply the TOC’s five focusing steps. From the case scenario, the primary goal of the HMC is to develop a lean production system that considers the expenditure for any purpose other than value creation for the end customer is wasteful. The TOC’ five focusing steps are applied to the HMC’s supply chain below. Identify the constraint: Even though HMC generates majority of its sales from the assembly area, the assembly side of the company is not very efficient currently. Another constraint to the HMC’s supply chain is that it does not have adequate space capabilities to maintain its large scale assembly operations. In addition, the company has never modified its initial layout since its establishment and this issue causes a series of ongoing production inefficiencies. Exploit the constraint: In this phase, the organizat ion has to cut down its inventory volume to the targeted level. Evidently, this practice would assist the organization to improve space utilization in the plant. Subordinate to the constraint: In order to improve the production cycle time, the firm has to replace its weaker labors with highly developed technologies. In addition, the HMC may make some special arrangements with its suppliers to reduce its expediting and obsolescence costs. Furthermore, the organization has to identify and eliminate any supply chain activity that does not create value for the end customer. Elevate the constraint: It is better for the organization to develop its plant capacity so that it can bear more assembly operations efficiently. Identify the new constraint: Once the HMC finished the above steps, the management has to watch for new constraints developed. 2. Theory of constraints in logistics The process of logistics is of vital importance in a lean production system because a lean system is specific ally concerned with elimination of wastes (Lean logistic understanding). Logistics can be simply referred to the management of resource flow between the point of origin and point of distribution. The TOC is very helpful to detect any constraint that affects the effective flow of resources. Timely identification of constraints in resource flow would aid the firm to remain competitive in the automotive industry. In case of HMC, constraints in logistics create some other potential operational challenges for the organization. The TOC can be applied to logistics to timely identify some other needs in supply chain management. For instance, lack of plant layout upgradation is a potential constraint that reduces the efficiency of logistic management. By applying the TOC, it is possible to identify such plant modification needs and thereby keep the plant unaffected of production inefficiencies. In addition, the TOC would assist the logistics management to improve the organization’s pr oduction cycle time through identifying inefficient labors and malfunctioning machineries. The organization can compare current logistics activities with those of previous years with the help of TOC. This practice would benefit the organization to clearly identify areas of improvement and enhance its market share growth. Lucent Technologies Lucent Technologies is a US based multinational telecommunications corporation that has applied the TOC to its supply chain. Like other

Leadership and Change (Love) Essay Example | Topics and Well Written Essays - 750 words

Leadership and Change (Love) - Essay Example Kotter (1996) proposes eight steps of management, which can be significantly essential in managing change. As Kotter demonstrates, the first step entails creating urgency. In this step, leaders develop urgency on why the organization needs change. Managers should identify probable threats and predict what might happen in the future. Therefore, this step focuses on identifying opportunities that can be exploited. Kotter argues that more than 75% of the organization’s management should buy into the new proposed change. Dubrin (2008) notes that the second step involve forming a powerful coalition; leaders should convince employees the necessity for change. Therefore, a team or a coalition of influential people should be brought together to succeed in leading change. The third step comprises of creating a vision for change; a clear vision helps members of the organization understand why they should embrace change. Thus, developing values centered to change and strategy for achievi ng the vision is particularly crucial in this step. The fourth to effective change management involves communicating the vision (Kotter, 1996). The vision should be communicated strongly and frequently. Based on this, the vision should be applied to all aspects of organizational operations from reviews on training to performance. The fifth step entails removing obstacles to achieve the proposed change. Thus, leaders should overcome people and structures, which resist change (Beerel, 2009). According to Kotter (1996 p 104), the sixth step involves creating short term wins; success motivates people. When the change process starts, leaders should give the company an experience of victory. Leaders should not choose early targets that may be expensive. Targets have to justify the investments in all the projects undertaken. Therefore, it would be crucial to analyze the pros and cons of the targets. Building on the change is the seventh step; leaders should analyze what succeeded and what needs to be changed. Additionally, they should set goals and targets to attain in the future. Ideas should be kept fresh by involving new leaders and change agents for the coalition. In this step, managers recognize the successes and failures, which they have made. This helps them make the necessary improvements in the organization. The eighth step entails anchoring the changes in corporate culture. Change has to become part of the organization’s core; it should be incorporated in all aspects. To Kotter, leaders should address progress and experiences of success. Thus, Leaders should place emphasis on change values and ideals in hiring and training staff. All members of the organization should take part so that no one feels left out in the change process. Kotter notes that a people driven and people oriented approach can be good while implementing change. Careful planning and building proper foundation also improves the chances of success in management (Nanus, 1998). The Kilp atrick Model Kilpatrick has proposed five key principles of effective change management. First, the change program should gain support from key decision makers within the organization. Secondly, planning should be conducted before implementing the projects (Kilpatrick, 1998). The third principle entails measurement; leaders state the objectives of the