Theory of Constraints
Invented by Dr. Eli Goldratt and popularized in his 1984 book The Goal, the Theory of Constraints systematically identifies and removes constraints that hinder business productivity.
Business improvement through Theory of Constraints begins with a hypothesis that there is some factor inside a company that limits the overall ability of a company to make money. By optimizing a business to its constraint, or constraints, Lading can elevate the overall output and profitability of a company.
Theory of Constraints in Logistics
Below are the three examples of where Theory of Constraints can be applied to the logistics industry:
Until now, the implementation of Theory of Constraints practices has been done without any sort of dashboard to ensure maximum productivity. That has now changed.
Companies are now able to create processes for employees to follow and managerial oversight in a manner that was not possible with the current tools of whiteboards and spreadsheets.