The use of Constraints Theory in Managing, Reducing Costs and Improving Profitability (Study in Baghdad Soft Drinks Company)

Abstract

The theory of constraints aims to identify weaknesses by using the constraints that obstruct the work of the company, and then work on how to find solutions through the use of principles of applying the theory of constraints, which is an effective tool that helps the administration to get rid of the weaknesses. Moreover, it appears the problem of the study which is represented (With the emergence of restrictions and weaknesses that lead to the inefficiency of the company performance (and to reach the research objectives, Baghdad Soft Drinks Company is chosen as the research sample. The researchers have reached a set of conclusions and recommendations. The most important of which are: - Increasing the volume of sales leads to reducing costs, improving profit in the company, and improving the ability. The company is to retain the customer through the management's knowledge to meet the needs of customers. The researchers also recommend that the company should adopt the theory of constraints because it focuses on maximizing profitability through the effective use of restricted or controlled resources in the flow of production and then in the overall productivity of the facility with a focus on products that give the largest margin. An achievement of the unit in the restricted resource.