Peter Drucker

In the example, if we had decided to buy the most reliable provider certainly at a higher cost we would have lower margins as a result, therefore, we would be less competitive and long-term reduced sales. On the other hand if we had chosen to buy from the vendor cheaper possibly we missing inventory, more defects and waste in production causing high costs of reprocessing or need to maintain high inventories. Summary of consequences of dividing the system into subsystems: more subsystems involved in making the product, seniors will be the disadvantages of manage the parts in isolation. Currently, suppliers of products and services, suffer more and more from the disadvantages of dividing their organizations into subsystems. Peter Drucker, in an article for Forbes magazine already talks about the problems of modern administration and affirms that: the basic assumptions, which are the basis of what they are taught and practiced in behalf of the Administration, are terribly outdated assumptions about business, technology, and organization most, they are at least 50 years old.

As a result, we are preaching, teaching and practicing policies, which are increasingly at odds with reality and are therefore counter-productive. Considering the number of processes and elements that are subject to variability, it is clear that without a mechanism of focus that guided the efforts of improvement, there is no way to achieve significant results in a short period of time. Most of the advances in methods of administration in the past 20 years, have focused on how to deal with these drawbacks. Reduce the variability of the subsystems improve processes of connection between subsystems organizations that have successfully achieved significant results in a short period of time, show us that such a mechanism exists. These companies reach the approach required, capitalizing on the inherent simplicity that governs any complex system. Theory of constraints in fact has as a foundation that every complex system is based on an inherent simplicity.