Applying Goldratt’s Framework to the Banking System
AbstractThis paper describes the major elements of the Goldratt’s framework – the Theory of Constraints (TOC) – in the banking sector, and examines the factors involved in the decision to adopt the TOC by companies in this sector. Through a deep literature review, analyzing similar cases that apply the Goldratt’s framework in services and in manufacturing and the several
views of its components, we aim at formulating a framework specifically for the banking system.
The study uses a qualitative methodology supported by the information extracted from reality as it is framed in a multicase study model. As part of the quantitative approach, we test several research hypotheses raised from the review of existing studies in the area.
The main factors that influence the decision to adopt the TOC are the nature and the characteristics of the banking service, the attitude towards change, the leadership and the commitment of the entire institution.
By using the Goldratt’s approach outlined in this article, through the location of the constraints and develop practical measurement to facilitate the banking process improvements, banks can improve resource utilization, revenues and employee satisfaction.
Keywords: services, banking sector, Theory of Constraints, Goldratt, TOC
How to Cite
Moreira, M. R., Castaño, J., Sousa, P. and Meneses, R. (2014) “Applying Goldratt’s Framework to the Banking System”, Periodica Polytechnica Social and Management Sciences, 22(2), pp. 107-117. doi: https://doi.org/10.3311/PPso.7673.