Current Business Research Project

Running head: CURRENT BUSINESS RESEARCH PROJECT

Current Business Research Project

RES/341

Professor O’Laughlin

May 31, 2010

Current Business Research Project

The objective of article, Improving Operations Strategy: Application of TOC Principles in a Small Business is to show the positive result of how procedures can help undersize business managers in producing and maintaining a competitive advantage by implementing the basic theory and ideology of TOC using a case study. Kohli and Gupta (2010) analyze operations of DT Pizza Company and apply TOC-based management philosophy to increase operations effectiveness and efficiency, directly resulting in improved financial successes.

* Define the business research and its purpose

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TOC concept of throughput-world thinking (TWT) impues that the goal of a company is to make more money (not to save money or reduce costs), and TOC seeks to help business owners maintain a proper focus on system constraints. It recognizes that system constraints limit the performance of a system and dius suggests a unique approach to manage these constraints. TOC-based management philosophy focuses on change at three levels (the 3Ms): mindset of the organization, measures that drive the organization and methods employed within the organization (Srikanth & Robertson, 1999; Boyd and Gupta, 2003; Gupta and Boyd, 2008).

* Business Problem(s)

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According to Kohli and Gupta (2010) the DT Pizza Company focuses to provide high value to the customers rather than reducing costs. The operational goals are: 1) quantity, 2) flexibility, 3) dependability, and 4) efficiency. TOC proposes a performance measurement system consisting of three simple measures: throughput, inventory, and operating expenses. In the DT Pizza Company the main source of generating throughput is from the sale of 20 different types and four different sizes of pizzas. More specifically, by selling price minus accurate variable the throughput...