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Title: The relationship between performance measures of theory of constraints
Author: Elyasir, Ahmed H. S.
Awarding Body: University of Manchester
Current Institution: University of Manchester
Date of Award: 2005
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The subject of this thesis is the performance management system of the theory of constraints (TOe). Its objectives are to examine to what extent the strength of the relationship between the operational measure X (Ox) and the global measure Y (Gy) may be affected by: 1) changing one or both parts of the relationship and 2) changes in the operational environment (OE), then to utilize the knowledge gained in analyzing and planning the overall performance of industrial firms working under a Toe environment, as well as supporting strategic decision-making regarding the choice of the most suitable strategy to improve the overall performance of such a firm. The first dimension of the research objectives was tested under four different OEs and the second dimension was examined under the nine possible combinations of the operational and global measures. Two aspects of the operational environment were chosen, one to represent the external environment at the strategic level, which is the financial openness (or closeness) of the system, and the second to represent the internal environment at the operational level, which is the inventory replenishment policy. Each of the two factors are of two levels; in the case of the first factor the levels are 'open system' against 'closed system' ('open system' means the unit sells some of its products on credit, and obtains some of its supplies on debit; 'closed system' means that all these transactions take place on a ready-cash basis). For the second factor, the two levels are 'lot for lot' against 'reorder-point' polices of inventory replenishment. The combination of these four levels creates four different operational environments under each of which the relationships were measured and compared. The following statement represents the two research hypotheses: 1- The strength of the relationship between the different pairs of measures within the same operational environment differs from one pair to another; and 2- The strength of the relationship between the same pair of measures di ffers from one operational environment to another. A simulation model was built to provide the data required to measure the relationships and then to test the research hypotheses. The strength of the relationships was measured in tenns of regression coefficient. The total effect of each of the operational measures on each of the global measures of the system was measured using the causal model of the relationships which was developed on the basis of TOe and Throughput accounting principles and definitions. The research hypotheses were then tested using MANOVA doubly repeated measures with a fully factorial design. The statistical analysis supports the two hypotheses. Based on the research results, a simple model was developed which may be used as a decision support system to help management in choosing the most efficient and effective combination of the operational environment and strategy to achieve the stated goal. Towards the end of the thesis, a number of further research opportunities are identified, including further validation and verification of the proposed model.
Supervisor: Not available Sponsor: Not available
Qualification Name: Thesis (Ph.D.) Qualification Level: Doctoral
EThOS ID:  DOI: Not available