292 research outputs found

    Applying theory of constraints to Fonterra Kapuni

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    This thesis presents an application of the Theory of Constraints to a New Zealand manufacturing organisation where the potential for improvement of the organisation's performance was identified. The objective of the thesis was to apply the theory of constraints (TOC to a New Zealand business in order to develop solutions to improve its performance. TOC is based on several premises, such as that, of all the problems that exist in our environment there is always at least one core problem that is preventing an organisation from improving its performance. As long as there is a constraint limiting an organisation's performance, there is always an opportunity for improvement. The theory of constraints is a system-based methodology that has been developed to assist people and organisations to think through problems and their solutions logically, and systematically. Case study methodology and the TOC were used and applied to Fonterra Kapuni. The TOC's three questions for change, what to change, what to change to and how to cause the change, were used along with the five focusing steps, to determine what, how and why improvements could be made. An analysis of Fonterra Kapuni was completed and a discussion presented recommendations for change. The analysis identified a core problem and a physical constraint that were limiting Fonterra Kapuni from improving its performance. A focus on throughput generation, strategic buffering and the use of a pull system for buffer replenishment were the main recommendations discussed. The thesis also provides recommendations on what should be included in the implementation plan, if Fonterra Kapuni is to take advantage of the opportunities presented. The thesis closes with a discussion of the benefits for Fonterra Kapuni and the researcher, and wider implications and limitations of the research

    Strategic decision-making processes: an investigation by case study of life science transfer decisions in crown research institutes

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    This thesis reports on an investigation undertaken to provide a more integrated image of processes used by organisations when they make strategic decisions. The study examines the multidimensional aspect of strategic decision-making and explicitly considers the impact of context on the process by simultaneously studying a large number of variables in more narrowly defined samples than previously described in the strategic decision-making literature. In particular, the research examines the strategic decision-making processes used by Crown Research Institutes (CRIs) when undertaking decisions relating to technology transfer of life science research in New Zealand. For each case study a detailed narrative was developed using information from the literature, in-depth interviews, secondary documentation and a short questionnaire. The narratives were analysed using a number of conceptual frameworks adapted from the literature. Within the data analysis the decision tasks were identified and sequenced, the characteristics of the decision-making process were described and the contextual influences were identified. Within the cases the decision-making process shared many characteristics that are attributed to strategic decisions and had a strong resemblance to the descriptive models outlined in literature. The decision-making processes were characterised by "novelty, complexity, and open-endedness" and influenced by a multitude of factors. The most striking feature of the findings was that the decision-making process is strongly influenced by context. The decision process activities and characteristics were shaped by interplay of contextual factors, particularly the decision-specific and organisational factors. The environment when operationalised as the life science industry had very little direct influence on the strategic decision-making process. The inquiry also found that the technology transfer decision-making process in the cases were initiated and driven by the autonomous actions of lower level members of the organisation. The way management influenced and supported these actions appeared to be an important influence on the decision's outcome. The findings also suggest that the practical problems in later stages of technology transfer were often underestimated and that financial indicators were the major factor in motivating technology transfer. These findings have a number of consequences to the way that CRIs manage the technology transfer process, and how best to promote and encourage success technology transfer in New Zealand

    An analysis of critical chain project management application

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    Theory of Constraints (TOC) - developed by Dr E. Goldratt - is a new management philosophy that provides a theoretical framework and tools to organisations to improve their organisations' performance. TOC has been effectively and successfully applied in various areas, including project management. TOC and its application to project management - known as Critical Chain Project Management (CCPM) - has recently emerged as one of the most popular approaches to project management. However, due to the recency of the approach, not many research studies or case studies have been reported about CCPM applications. This thesis intentionally focused on only TOC application in project management; other project management literature was not included and discussed. The thesis aimed to provide evidence of the effectiveness of TOC application in the field of project management - CCPM. The thesis, firstly, provided a comprehensive theoretical framework on CCPM; most significant aspects regarding CCPM were discussed here. This thesis was a single-case study that examined CCPM application in a real-life organisation that has been implementing CCPM to improve its project system by gathering documentation related to the CCPM implementation, conducting semi-structured interviews with staff members who were involved in the process, and carrying informal observation. Data collection and analysis allowed the researcher to examine CCPM implementation, and the findings provided an additional evidence of the effectiveness of TOC in project management, giving management confidence to apply CCPM in their organisations. Also, the findings provided thoughts to management regarding issues that need to be considered when CCPM is applied. Finally, this thesis outlined recommendations to organisations (to both management and staff members) that would like to apply CCPM, and implications for future research opportunities were also described

    Examining the theory of constraints: a source of operational and financial performance improvement for manufacturers

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    The Theory of Constraints (TOC) is a management philosophy developed mainly by Israeli physicist Dr Eliyahu M. Goldratt. This thesis is a literature based research exercise that examines the structure, components, and results of applications of the Theory of Constraints. The literature review provides one of the first ever in-depth descriptions of TOC in a single document, synthesising information from across a wide range of published material, detailing the philosophical and technical aspects of this approach to management. The review contains discussion that draws comparisons between TOC approaches and more conventional management techniques, across a range of disciplinary groups. A comprehensive investigation collected empirical evidence of the results of the application of TOC to over eighty organisations, with the purpose of answering the following question: Is the Theory of Constraints a source of operational and financial performance improvement for manufacturers? The case survey method was employed, and data collected from case studies and published reports of applications of TOC. This research concludes that TOC is a source of performance improvement for manufacturers: As evidenced by the significant mean improvements to operational variables such as Lead-time, Cycle-time, Due-Date-Performance, and Inventory reduction. Data relating to financial variables representing increased income, such as Revenue and Throughput, shows TOC applications yielded significant improvements in organisational financial performance. These conclusions are supported by moderate, but not large sample sizes, a limitation created by the inconsistent nature of reporting of results. The findings of this thesis have significant implications for manufacturing organisations seeking to improve operational and financial performance in a competitive environmen

    Preaching and Practising: a Retrospective Exploration of Goals and Innovative Developments in the Administration of Intellectual Property Rights

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    The management of innovation is a common phrase in many conversations about modern business management. However, management innovation has comparatively less recognition despite claims that it is one of the key components to organisational development in the 21st Century (Hamel, 2006). This study explores the generation and adoption of management innovation, within an organisation that administers legal rights for the commercialisation of innovation in New Zealand. The exploration focuses on the implementation of changes within Intellectual Property Office of New Zealand (IPONZ), seeking evidence of innovative changes in management. Identified management innovations are examined to uncover their functions and effects within the context of IPONZ’s purpose, articulated through goal setting. The study utilises case study methodology, borrowing from phenomenological methods to carry out an in-depth analysis of unfolding events at the organisation. Perceptions within the organisation and historical information were used to establish the occurrence of events. The organisation was examined holistically, with exploration including all areas of operation. Both primary and secondary data informs the research analysis and conclusions, guided by developments in previous innovation studies and literature on the use of goals. The prescribed Goal Setting Theory of Locke and Latham (1979) was examined to consider the effects goal setting has on performance. It was found that at IPONZ, changes implemented were a direct result of the goals that were set. In a period of holistic transformation, some goals were set as the successful implementation of change initiatives. Findings point to implications that the manner in which goals are set affects the amount and nature of changes that are implemented. The highest number of changes and management innovations were introduced in periods where changes were part of official performance expectations. All management innovations found were contextually novel, and were closely linked to the introduction of a holistic transformation project

    The relevance of theory of constraints (TOC) for capability maturity model integration (CMMI) implementations in China's software industry

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    Developed by Goldratt from around 1980, the Theory of Constraints (TOC) is a management philosophy that treats a corporation not as a collection of independent processes, but as a complete system. It is a methodology developed to answer the questions of what to change, what to change to, and how to cause the change. While TOC has received considerable acclaim for its effectiveness in system improvement, it has not been widely known to Chinese organizations. Aiming at exploring ways of improving Capability Maturity Model Integration (CMMI) implementation in China's software industry, this research has applied the TOC Thinking Process to identify the problems (or constraints in TOC terms) experienced when implementing CMMI in China's software industry, to search for possible solutions and to illustrate an action plan for facilitating the desirable change. Since CMMI is primarily about project management, this research also discussed how Critical Chain Project Management (CCPM, TOC application in project management) can help improve CMMI implementation. Additionally, because CMMI implementation involves knowledge transfer, this research also reviewed Knowledge Management literature in general and discussed the synergies between knowledge management, TOC and CMMI implementation. This research concludes that though TOC has its limitations and challenges, it has acted as an important "eye-opener" to the Chinese software industry - it offers a different approach to help the Chinese software organizations better understand their real situations and problems; it provides a useful alternative for system improvement. The contributions of this research to both theory and practice are discussed, and opportunities for future research are proposed

    An evaluation guideline for waste treatment technologies

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    Establishing a responsible waste treatment system for municipal solid waste is of great importance for the future of the environment and mankind. There exists a great variety of waste treatment technologies which are offered on the German market which can be divided into three main groups: the mechanical biological treatment, the thermal treatment and the material specific treatment. In order to find the most appropriate treatment technology for a district or a municipality it is necessary to find a way to evaluate the technologies regarding their monetary, technical and environmental aspects. The focus of this thesis was to develop an evaluation guideline for waste treatment technologies covering these aspects by combining useful aspects of already existing evaluation models with new ideas. In order to ensure the general applicability of the evaluation guideline it is structured using the multiple criteria decision analysis methodology, in particular the Multi-Attribute Value Function method which is applied by the VISA software (Visual Interactive Sensitivity Analysis). This ensures that the decision maker is guided through the whole evaluation process along a well-structured framework. Nevertheless the evaluation guideline still leaves the decision maker a high degree of flexibility because he/ she can modify the model by adding new criteria, changing the alternatives under consideration, incorporating his/ her own preferences, etc. This flexibility allows the decision maker to build his/ her own model which is perfectly adapted to the individual situation of the problem. The evaluation guideline is tested in two separate examples proving its practicability and presenting its opportunities. Especially the possibilities for displaying the results of the evaluation process are described which are offered by the applied VISA software. A critical outlook rounds off the thesis by presenting further needs for future investigations and research areas

    An exploratory study into the implementation of theory of constraints (TOC) on New Zealand manufacturing organisations

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    Theory of Constraints (TOC) has been extensively used worldwide since its introduction in the business community over 20 years ago. Despite this, there appears to be a lack of general empirical studies on the implementation of TOC applications both overseas and in New Zealand. This research study aimed to address this gap in the literature by conducting a mail questionnaire involving 300 participants from the membership database of the Avraham Y. Goldratt Institution (AGI), as a way to provide insights on the current implementation of TOC applications in New Zealand manufacturing organisations. Findings indicated that there was an uptake of TOC from NZ manufacturing organisations in the mid to the late 1990s but this was small. These organisations had used mainly the Operational Strategy TOC components as reflected by the level of familiarity, the level of difficulty in understanding, the level of usefulness, and the level of understanding of TOC principles of Operational Strategy TOC tools. However, a small number of these organisations had applied the Thinking Process restricted to Current Reality Tree (CRT) and Evaporating/Conflict Cloud (EC). Despite the predominant use of the TOC Operational Strategy component by the NZ manufacturing organisations, gains in Operational Performance can be achieved a short period time, but NZ manufacturing organisations did not display significant improved percentages in Operational Performance as many of the overseas case studies had reported. The participation of Operational Employee(s) or Consultant(s) were found to have a negative statistical significant correlation with the length of time before changes occurred in performance. In addition, a positive statistical significance was found between the level of difficulty in understanding TOC terminology and the level of understanding of TOC principles. As with many implementation processes, NZ manufacturing organisations experienced barriers, particularly with the human element of 'resistance to change'. Despite this, the survey found there was indicative correlation that better understanding of the Thinking Process tools may be the solution to having any major barriers during implementation of TOC. These NZ manufacturing organisations have applied three or four management approaches/methods at their production sites, used either parallel, in sequence, or together as a multi-methodology

    Vicky Henderson

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    this paper. The second author is supported by an Advanced Fellowship from the EPSRC. The third author acknowledges partial financial support from DAAD, EPSRC and KW

    Shaping More Sustainable Communities: a Case Study in Urban Water Management

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    The motivation for this study was to consider how communities might take a more integrated and systematic approach to meeting the challenges of water management in New Zealand, and achieve more sustainable systems. The specific challenges facing a community pursuing sustainable urban water management objectives were examined and solutions sought and tested. Urban water systems, in particular, are under increasing pressure to meet the expectations of communities, with water managers required to articulate sensible management initiatives that secure water supplies and protect water for its intended use, now and in the future. Despite policy and regulation intended to advance outcomes and integrate efforts within the complex area of urban water management, fragmented approaches persist, while a pattern of decline in the quality of New Zealand's water resources remains a cause for concern. Nearly half of urban rates collected in New Zealand apply to water and wastewater management. Thus, this study is concerned with understanding the critical constraints to achieving healthier, more sustainable urban water systems that are affordable for New Zealand communities. The thesis demonstrates the methodology by focusing on Kapiti, a settlement north of Wellington, which has been debating and responding to water quality and security issues for more than a decade. Subsequent to a piloted investigation, a methodological framework was proposed, based on integrating three near complementary perspectives. The Theory of Constraints (TOC) was used with a Stakeholder Typology to identify system stakeholders, capturing and representing their perspectives with Intermediate Objective (IO), Current Reality Tree (CRT) and Prerequisite Trees (PRT), while Causal Loop Diagrams (CLDs) from Systems Dynamics were constructed with some participants to explore and circumvent potential negative outcomes. The combined framework provided a source of deep insights into the challenges, dilemmas, potential solutions and side effects facing resource managers and other stakeholders in an urban water system under pressure from population growth and climatic/topographical conditions. It is possible that the combined theoretical framework can be applied to other resource management cases. The use of the Stakeholder Typology to complement TOC provided a tactical element not routinely evident in systems studies, valuing the experiential and historical perspectives of those who might otherwise be treated as being outside the system, their perspectives marginalised or ignored. The TOC framework offered a logic-based means to identify and invalidate a critical assumption that peak demand would reduce to a level predicted by system managers. Further, the TOC tools were used to focus on and agree the set of conditions necessary to deal with the demand constraint and meet the system goal agreed by the stakeholder participants
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