Parivartan - Theory of Constraint Way (Professional to An Entrepreneur)

Abstract

This article is intended to guide management students, professionals & budding entrepreneurs with a different perspective of how education, qualification & practical experience coupled with acceptance to "Parivartan" (Change) can impact our personal and professional life. As a professional, the expectation from an individual is to play a role in some specific limited part of the whole system, unless one is a CEO. Professional is expected to work in a specific area or domain or may be department. The Entrepreneur is required to play the role of managing the whole system which grows as the business expands. Entrepreneur not only has to drive people for current performance from the system, but also, he/she must build the system for the future growth. The entrepreneur is expected to work in current system as well as on the future businesses. Article elaborates with author's personal experiences to accept & manage changes at various stages of professional life. Article explains thoughts & process of decisions making while accepting to change & undergo change. Article narrates actual life situations & experiences faced during various stages from starting a business with limited resources & I further explain situations & difficulties a Small & Medium scale Enterprise (MSME) faces when it plans to grow in various aspects of business. This will further elaborate on management of a small-scale acquisition, various challenges faced in this process &further merger of entities both in terms of business processes & Human resources. Article gives further insights of Why there is a need to accept to change& How implementation of “Project Parivartan" in operations & business practices using concepts fundamentals of Theory of Constraints (TOC) impacted the entity& obstacles faced. It explains further how TOC approach of, understanding impact of Constraint in a flow to maximize growth & Implement Process of Ongoing Improvement (POOGJ) helped the organization. It further elaborated that for achieving this how company has established mechanisms for avoiding Bad multitasking and implementing Full kits. Business requires visibility of key indices which is captured with Project & Product planning engines, monitoring reports, defining items & products Buffers, along with new ways of analyzing & decision making with Alternate approach, to accounting with Financials in terms of Throughput (TP), Truly Variable Cost (TVC) & Operating Expenses (OE) with different Ratios & Monitoring via Score card. This article will also give brief insight of effects of socio-economic situations on MSME businesses due to changes in Government policies & Laws like demonetization& Implementation of GST and other allied policies.