Theory of constraints and an application in a production company

This research was carried out to investigate the Theory of Constraints and the results of the application of this theory which is a management system philosophy advocating the view that each company aims to make money, so all companies, has at least one constraint and the performance of the company is determined by this constraint or constraints. In this study, the historical development of the Theory of Constraints, studies carried out in the literature and the constraint management process were examined. 5-Steps process of ongoing improvement which identifies the constraint that prevents to make more money for the company and then manages them was applied in a production company and profitability of the company was evaluated. The research was implemented in the synthetic thinner production process of a company in the paint industry. It was observed that the insufficiency of capacity to meet the orders situated in the company inhibits to make more money. By following 5-steps process of ongoing improvement, capacity constrained resource in the production system was determined and studies to eliminate the constraint were carried out by Theory of Constraints perspective. After identification the capacity constrained resource in the system, optimal product mix was determined and then alternative recommendations were offered for the elimination of the constraint. Changes occurring in the profitability of the company through these recommendations and the profitability in the case that the constraint existing are compared. At the end of the constraint management process it was observed that the profit of the company was increased and the recommendation was accepted that provides maximum profit. Keywords: Constraint, profit, theory of constraints, constraint management, ongoing improvement.