Application of the Theory of Constraints for Ensuring Sustainable Development of Enterprises in the Housing and Utilities Sector

Abstract

This study explores the possibility of using the theory of constraints to ensure sustainable development of enterprises in the housing and utilities sector. Aim. This study aims to examine the methods of the theory of constraints in enterprise management in the housing and utilities sector to ensure sustainable development. Tasks. This study examines the methods for identifying the key problem using the theory of constraints, applies those methods to an existing enterprise in the housing and utilities sector, and assesses the effect of such application using financial analysis methods. Methods. This study uses general scientific and logical methods of cognition, expert assessment methods, and the method of current reality tree building to identify key problems and adverse phenomena that limit the ability of the examined enterprise to ensure sustainable development. A set of measures for minimizing the effects of the identified limitations is developed. Results. A key problem that limits the ability of the examined enterprise to ensure sustainable growth is identified during current reality tree building. The results of this method’s application serve as a foundation for a set of measures aimed at restoring the financial stability of the examined enterprise and ensuring its sustainable development. The efficiency of the developed methods is assessed using financial analysis methods. Conclusion. A set of measures based on the results of current reality tree building leads to restoration of the enterprise’s financial stability. Therefore, application of the described methods of the theory of constraints, particularly in combination with financial analysis methods, appears to be an effective tool for assessing the state of an enterprise and developing subtle managerial decisions.