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Theory of Constraints in the Service Sector: Characterization for Banking and Analysis of the Factors Involved in Its Adoption

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Exploring Services Science (IESS 2013)

Part of the book series: Lecture Notes in Business Information Processing ((LNBIP,volume 143))

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Abstract

In this research we represent the major elements of the Theory of Constraints (TOC) in a services environment, specifically for the banking sector, and we analyze the factors involved in the decision to adopt the TOC by companies in this sector.

It was identified that the four elements of the TOC theory, throughput, inventory, operating expenses and constraints, correspond to, respectively, the money coming from financial services rendered, the money required to generate this profit, the money to fund the expenses, and the limitations to the normal activity. Regarding the constraints, the most common are mainly administrative (regulations and policies) and the lack of technological resources associated to the scarcity of capital flow and the environment imposed by the state of the economy at a specific time.

The main factors that influence the decision to adopt the TOC by the banking sector reside, first, in the tool’s current level of development; second, in the nature and the characteristics of the banking service that are very far from the original industrial reality and, finally, in organizational factors such as the attitude towards change, the leadership of the administration and the commitment of the entire institution.

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Author information

Authors and Affiliations

  1. Faculty of Economics, Universidade do Porto, R.Dr. Roberto Frias, s/n, 4200-464, Porto, Portugal

    Julian D. M. Castaño, Maria R. A. Moreira, Paulo S. A. Sousa & Raquel F. Ch. Meneses

  2. LIAAD-INESC, Porto, LA, Portugal

    Paulo S. A. Sousa

Authors
  1. Julian D. M. Castaño
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  2. Maria R. A. Moreira
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  3. Paulo S. A. Sousa
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  4. Raquel F. Ch. Meneses
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Editor information

Editors and Affiliations

  1. Departamento de Engenharia e Gestão Industrial, FEUP – University of Porto, Porto, Portugal

    João Falcão e Cunha  & Henriqueta Nóvoa  & 

  2. University of Geneva, Geneva, Switzerland

    Mehdi Snene

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Castaño, J.D.M., Moreira, M.R.A., Sousa, P.S.A., Meneses, R.F.C. (2013). Theory of Constraints in the Service Sector: Characterization for Banking and Analysis of the Factors Involved in Its Adoption. In: Falcão e Cunha, J., Snene, M., Nóvoa, H. (eds) Exploring Services Science. IESS 2013. Lecture Notes in Business Information Processing, vol 143. Springer, Berlin, Heidelberg. https://doi.org/10.1007/978-3-642-36356-6_5

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  • DOI: https://doi.org/10.1007/978-3-642-36356-6_5

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