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Business Constraint Identification and Solutions Implementation

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All business organizations of any kind function as systems, not as collections of disconnected processes. A system is a group of interacting components that work cooperatively toward the achievement of a common goal. Anything that limits a system from achieving higher performance in the pursuit of its goal is a constraint. In any system there must exist at least one constraint to unlimited performance. How we identify and address the system's constraints directly controls the level of performance of the system. To enhance system performance a continuous improvement process called The Theory of Constraints is applied.

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A system is defined as a collection of interacting and interrelated components that work to perform a common goal, thus every business enterprise is a system. If the interactions and interrelationships of the components that form an enterprise govern the results achieved by that enterprise, then we can analogously view that enterprise as a chain of connected events and interactions.

We want to take a global perspective of the enterprise. Like any physical chain, the strength of an enterprise is limited by its weakest link. Therefore to improve the performance of the enterprise, the chain, the first step must be to identify its weakest link. We refer to this weakest link as the constraint which is limiting the enterprise from fully realizing its potential goal.

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