A practical approach to achieving Agility–a theory of constraints perspective

Abstract

This article documents an action research (AR) project aimed at identifying the practical steps needed to become an agile manufacturer through a combination of the theory of constraints (TOC) and resource- based view (RBV) approaches in a small to medium enterprise (SME) in the Australian manufacturing sector. To date, lean production has been highlighted as a possible catalyst for creating an agile manufacturer, despite the evidence suggesting that lean manufacturing lacks the responsiveness and adaptability to effectively handle a rapidly changing market place and only works well in a stable environment. A more flexible system of production is required to fully encompass the agile characteristics needed to attain a competitive advantage. This research provides empirical evidence that the TOC perspective can be used as a practical approach for becoming an agile manufacturer. The study provides a workable approach for small firms to achieve ‘Agility’ in practice.

Keywords:

• Agile
• TOC
• manufacturing
• SME
• action research