Abstract:
In a competitive environment management of organizations has to decide which the best opportunities are to pursue, as well as how to deliver faster and cheaper than their competitors on their commitments. This has to be done with limited resources to ensure profitability. In this study a conceptual management model is proposed to serve as a management tool to help management of organizations choose the right amount of value opportunities entering the organization’s value stream, managing the risks associated with the opportunities, and converting the opportunities into high-value adding realities as fast as possible. The solution applies supply chain and constraint management principles to the proposed management model, assuming that Critical Chain multi-project management is in place. The conceptual management model also proposes a set of strategically placed buffers as an integral part of the process, which are the primary means of managing the whole system for increased productivity. The TOC thinking processes is systematically employed to identify the core management problem for the study and also proposing a solution. The proposed solution was simulated and confirmed that it is indeed a valid way to increase organizational value in terms of amount and timing.
