The Theory of Constraints application for cost minimization in corporates

While corporates continue their activities, they meet with behaviour, management, capacity, marketing and logistic constraints. That?s why Theory of Constraints is a management philosophy which deals with the constraints that effect corporate performance. It has been brought up as a managment dicipline to reveal and to remove the constraints that prevent the corporate from its targets. Instead of taking corporates as independent process units, theory takes them as united systems and defends that to determine and eliminate corporates? constraints an integrated effort should be taken.Every constraint, struggled by corporate in the production process is evaluated and accepted as a Bottleneck which must get into optimum variation. Bottlenecks are the elements that limit the production capacity. Bottlenecks determine the production process. For this reason, Theory of Constraints define the bottlenecks as an important difficulty on the road to the target.The corporates which want to downsize and minimize its cost, first of all, must scrutinize its ongoing structures and establish the cost inceasing points in the basic units like purchasing, production, marketing, stocking and managment. This cost increasing points will be Bottlenecks. When the Bottlenecks are removed, cost will be effected and get into an optimum level.In the study, it has been ascertained how the product cost and corporate profit have been effected after bottlenecks are removed.