{[ promptMessage ]}

Bookmark it

{[ promptMessage ]}

ARE112_Sp11_Notes02_TransOrg

ARE112_Sp11_Notes02_TransOrg - ARE 112 Spring 2011 Notes#2...

Info icon This preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
ARE 112 – Spring 2011 Notes #2 – Looking at the Transformational Organization ARE112_Sp11_Notes02_TransOrg Page 1 of 3 I. Class Notes 1. Babe the film next Monday, April 11 th 2. Group form – turn in by end of class this Wednesday, April 6 th II. The “The Beer Bust” case III. The Goal and the Theory of Constraints A. As you continue to read The Goal keep the following in mind: 1. Theory of Constraints (TOC) is an overall management philosophy that aims to continually achieve more of the goal of a system. If that system is a for-profit business, then the goal is to make more money, both now and in future. In a broader perspective, the goal is to create value so there is application to not-for-profit organizations as well. For The Goal, this is what Jonah is talking about. 2. TOC consists of two primary collections of work: a. “The Five Focusing Steps” and their application to operations b. “The Thinking Processes” and their application to project management and human behavior. 3. According to TOC, every organization has one key constraint which limits the system's performance relative to its goal. These constraints can be broadly classified as either: a. an internal constraint or b. a market (external to the organization) constraint c. you will see this as you read The Goal 4. In order to manage the performance of the system – the firm -, the constraint must be identified and managed correctly (according to the Five Focusing Steps below). The Five Focusing Steps and the Continuous Improvement Goal Theory of Constraints is based on the premise that the rate of revenue generation – the goal for example - is limited by at least one constraining process (i.e. a bottleneck). Only by increasing
Image of page 1

Info icon This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern