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    • The rest of the paper will be organized

    2018-10-25

    The rest of the paper will be organized as follows: Section 2 will be theoretical background and literature review, Section 3 will be conceptual model and hypothesis, Section 4 will be on research methodology, Section 5 will be research results, Section 6 will be discussion of the findings and Section 7 will be on conclusion, implications and future research.
    Theoretical background and literature review Many managers have tried to address the various challenges that affect their organizations’ operations. Some of the problems are the unavailability of skilled personnel, the high cost of production, low capacity utilization, and epileptic electricity supply. It is better to identify a bottleneck by interviewing operators than higher level managers because the senior managers will not have an understanding of the real challenges their organizations are undergoing. Constraints are easy to locate when they are physical, but when they are invisible such as training, policies, and measurement, it becomes harder to identify them. These constraints can cause a person to undertake an action that may end up being costly to the organization (Kendall, 1997). In managing a bottleneck, management can use both the short-term and long-term capacity expansions. The short-term capacity options during the peak periods include temporary employment, temporarily outsourcing, part-time employees, seasonal employees, and many more. The managers are supposed to find alternatives for improving the effective capacity utilization at the bottlenecks, without incurring higher expenses and inferior customer service. When fully implemented, TOC is an effective management philosophy that results in positive, observable outcomes like increased throughput, reduced inventory levels and reduced operation expenses, which in turn are related to improved performance of the organization. Firms considering TOC implementation can feel some degree of confidence that worthwhile improvements can and should be realized as a result of implementation (Inman, Sale, & Green, 2009; Tulasi & Rao, 2012). TOC views JWH 073 as positive because they determine the level of performance of the entire system hence the sequential elevation of the system’s constraints will improve its performance (Frazier & Reyes, 2000). Sanjika (2010) posits that in an attempt to improve overall performance in an organization, the approach of TOC should be employed to deal with complex issues that make suprachiasmic nucleus (SCN) difficult to do the implementation. Capacity is the volume of output per unit of time that the stock of plant and equipment can produce (Corrado & Mattey, 1997; Kirkley, Paul & Squires, 2002; Leeuw, 1962). Leeuw (1962) argued that capacity is used as an indicator of short-run cost conditions and affects economic developments at points where short-run costs influence decisions. According to Leeuw (1962) capacity utilization determines the level of prices and contributes to returns to and efficiencies of various outputs. Capacity measures a point at which the cost of producing an additional unit of output is well above the average value in the most efficient output range. Smith-Daniels and Schweikhart (1988) argued that the management of capacity involves decisions concerning the acquisition and allocation of workforce, equipment, and facilities. These decisions place equipment constraints on the quantity of services that can be delivered and the flexibility of the delivery system to significantly change the service mix in response to shifts in demand. According to Gupta and Boyd (2008), managing the organizations constraints will lead to better utilization of the available capacity in the organization and hence result in improvement in the overall performance. According to Christiano (1981) capacity utilization is a measure of the intensity with which the national economy i.e. sector or firm makes use of its resources. Christiano (1981) argued that capacity utilization falls into two categories: those that are concerned with a degree of utilization of capital only (capital utilization) and those that are concerned with the extent of utilization of all resources including capital. Christiano (1981) continued to argue that there are two approaches to measuring capacity utilization: to infer from available data and to ask businesses what their capacity is.