policy constraint
2019-04-25
A "policy constraint" is a constraint theory term for a policy that is preventing a firm from improving its performance.
The policy here is, for example, company rule, measurement standard, or decision made by human beings.
In other words, policy constraints are "constraints created by the human mind.
The "process in large batch sizes" rule for manufacturing products is a common example.
This rule is seemingly desirable because it lowers the production cost per unit.
But there are some negative effects, such as an increase in work in progress and inventory, and an increase in the time it takes to deliver to the customer.
o1 Pro.icon2025-01-06
In TOC (Theory of Constraints), "policy constraints" refer to situations in which a company or organization's rules, conventions, valuation index, etc. prevent the improvement of the original productivity or throughput (end result). The focus is not on physical restraints or market factors, but on artificial and organizational constraints.
In TOC, it is important to revise and discard rules as necessary to maximize the flow of the entire system when such policy restrictions become bottlenecks. In TOC, when these policy constraints become bottlenecks, it is important to revise or discard the rules as necessary to maximize the flow of the entire system.
nishio.iconRoughly the same explanation, the comparison makes the keywords richer.
Increased Productivity
Constraints created by the human mind / Artificial constraints
Excess inventory
Maximize Flow
High throughput
---
This page is auto-translated from /nishio/ポリシー制約 using DeepL. If you looks something interesting but the auto-translated English is not good enough to understand it, feel free to let me know at @nishio_en. I'm very happy to spread my thought to non-Japanese readers.