Our Approach and The Theory of Constraints (TOC)
Traditionally in the field of management, experience is greatly valued. A manager with experience is highly appreciated for the time spent in their field of specialization. While experience is a valid attribute, it is not sufficient. There is a tendency to over-appreciate experience because in the past it has been very difficult to introduce true structure and organization into the way people work. People like to say they learn from experience. As a result, they may continue to repeat habits and behaviours that are mistaken.
Conversely, when we use a ‘theory’ together with experience, the path towards achieving a goal is better defined, and by adhering to the theory, every manager in an organization always knows what to do.
IM bases its approach to management on a scientific theory and method.
An organization is a complex system, and as such it requires a theoretical basis. This may be highly complicated, using analytical techniques such as non-linear dynamics, fractals, and network theory. However, any theory that is fit to be used must contain practical applications that allow the theory to be verifiable and repeatable.
The Decalogue, the theory used by IM, is a harmonious and holistic blend of statistical methods with constraint management, and it contains several applications that allow the theory to be put into practice. For example, for synchronized management of production we use Drum Buffer Rope (DBR) that allows us to exploit the constraint of the system, once identified, to the maximum.
For Project Management we use the algorithm of “Critical Chain”, which allows us to identify and manage the duration and completion of the project on the basis of its constraint, which in any project is its Critical Chain.
The application of the Thinking Processes Tools (TPT) allows us to identify and eliminate the cognitive and policy constraints belonging to both individuals and the organization as a whole. An example of this is their use in a sophisticated application for Marketing and Sales called “External Constraint”.
Through the use of Statistical Process Control (SPC), together with an understanding of the interdependencies inside an organization and outside (suppliers and customers) we can develop an application for Replenishment management based exclusively on real consumption.
