Using the Theory of Constraints to Guide the Implementation of Quality Improvement Projects in Manufacturing Operations
Management and Entrepreneurship
Several studies have shown that more than 70% of all medium to large size companies (sales exceeding $19 million) have some form of quality improvement program in place. Based on independent studies by Arthur D. Little, Ernst & Young, and others, researchers have concluded that only about one-fifth of all QI programs achieve tangible results. One explanation for the disappointing results is that many quality improvement efforts are not results-oriented. The purpose of this paper is to demonstrate the value of using the theory of constraints for achieving a results-oriented quality improvement program.