Theory of Constraints – OM in the News

For General Mills, Shortages Lead to Price Increases

Ongoing supply chain issues have created material shortages and rising input costs for General Mills.

Disruptions of materials such as fats, oils, starch, and packaging have made it difficult to keep up with demand for General Mills’ ready-to-bake products, pizzas, and hot snacks.

General Mills resorted to changing its recipes to keep products on shelves. Increased labor, transportation, and raw and packaging materials costs mean that the company will charge customers more for its products.

Video Spotlight:

Pizza […]

By Anita Lee-Post, Ph.D.|2022-05-09T00:52:15+00:00May 8, 2022|Tags: aggregate planning, food supply chain, product redesign, supply chain disruption|

Ready to Travel Again? Be Prepared for Flight Delays and Cancellations

As air travel picks up this summer, passengers are reminded of the frustrations that come with it.

Long lines at the airports, delays, and even cancellations are to be expected. American Airlines passengers are especially affected because the airline is struggling to fill positions that had been eliminated at the height of the pandemic. What seemed like a sensible cost-saving strategy at the time has caused bottlenecks that are now hindering the economic recovery of the company and annoying its customers.

By CMKaruppan|2021-07-05T19:26:01+00:00July 8, 2021|Tags: bottleneck, TOC, waiting lines|

Bottleneck for U.S. Coronavirus Response: The Fax Machine

Problems with testing continue, but they may not be what you think.

As the U.S. ramps up COVID-19 testing, the infrastructure to process the test results has become another impediment to containing the virus. A myriad of issues ranging from incompatible technologies to lack of data standardization has delayed the reporting of results. These delays have made it difficult for people testing positive to remember all the people with whom they had contacts before the test, which impairs the ability to […]

By Corinne M. Karuppan, Ph.D.|2020-08-06T18:17:35+00:00August 7, 2020|Tags: TOC|

Is Less Care the Key to Value Health Care?

The search for value healthcare is taking a new turn as Blue Cross Blue Shields of Massachusetts forces hospitals to realign their strategies from a focus on efficiency to one on patient outcomes.

As the largest payer in the state, BCBS is incentivizing hospitals to keep patients out of hospital beds. The future of this pilot program at South Shore Hospital is still uncertain, but it looks promising.

Video Spotlight: Value-Driven Outcomes: A program to reduce hospital costs

By Corinne M. Karuppan, Ph.D.|2018-11-27T04:02:44+00:00November 26, 2018|Tags: JIT, lean, TOC, value analysis|