Application of Theory of Contraints
Application of the Theory of Constraints in Banks.
Bramorski, T., Madan, M.S., and Motwani, J.
The Bankers Magazine, Jan-Feb 1997 pp 53-59.
High economic growth, intensified competition, and increased customer sophistication have forced the banking industry to reevaluate techniques to improve operational efficiency and profitability.
In recent years, service industries have faced significant competitive pressures resulting from globalization, rapid advances in technology, and a high degree of customer sophistication. The strategy factors used by service organizations in today's competitive marketplace include quality, availability, customer service, and time. In order to enhance their competitive position in the global marketplace, world-class service organizations must constantly look for ways to improve their performance on these factors.
Various modern management philosophies and techniques have been developed and successfully applied in the manufacturing sector. Today's service organizations face competitive pressures similar to those faced by the manufacturing industry during the past decade. Well-publicized business turnarounds in the traditional manufacturing sectors, specifically in the automotive industry, have encouraged the service organizations to assess the applicability of solutions successfully applied in the manufacturing sector to address their problems.
Developments Within Banking
The banking industry in the US has changed dramatically in recent years. In addition to the competitive pressures in services, the banking industry in particular has lately undergone an intense wave of mergers and acquisitions. Mergers and acquisitions are typically followed by consolidation of operations with the objective of eliminating operations that are not cost efficient. These circumstances have imposed additional pressures on banks to improve their operational excellence.
US banks have operated and competed primarily at local and
Bramorski, T., Madan, M.S., and Motwani, J.
The Bankers Magazine, Jan-Feb 1997 pp 53-59.
High economic growth, intensified competition, and increased customer sophistication have forced the banking industry to reevaluate techniques to improve operational efficiency and profitability.
In recent years, service industries have faced significant competitive pressures resulting from globalization, rapid advances in technology, and a high degree of customer sophistication. The strategy factors used by service organizations in today's competitive marketplace include quality, availability, customer service, and time. In order to enhance their competitive position in the global marketplace, world-class service organizations must constantly look for ways to improve their performance on these factors.
Various modern management philosophies and techniques have been developed and successfully applied in the manufacturing sector. Today's service organizations face competitive pressures similar to those faced by the manufacturing industry during the past decade. Well-publicized business turnarounds in the traditional manufacturing sectors, specifically in the automotive industry, have encouraged the service organizations to assess the applicability of solutions successfully applied in the manufacturing sector to address their problems.
Developments Within Banking
The banking industry in the US has changed dramatically in recent years. In addition to the competitive pressures in services, the banking industry in particular has lately undergone an intense wave of mergers and acquisitions. Mergers and acquisitions are typically followed by consolidation of operations with the objective of eliminating operations that are not cost efficient. These circumstances have imposed additional pressures on banks to improve their operational excellence.
US banks have operated and competed primarily at local and