Application of the theory of constraints to unveil the root causes of the limited market penetration of micro gas turbine systems

Abstract

Micro Gas Turbines are small devices for on-site power and heat generation. Their high maintainability and fuel flexibility make them a suitable technology for transitioning to a greener economy. However, their commercialisation did not match the stakeholders’ expectations. The authors applied the Theory of Constraints – a methodology for the continuous improvement of systems – to the MGT industry introducing a structured and rigorous representation. The constraint – i.e. Root Cause – Analysis identified which entities sustain the cause–effect chain, eventually generating the Undesired Effects. The system constraints link to the specificity and effectiveness of commercialisation strategies and product innovation in agreement with evolutionary market theories. Moreover, the Theory of Constraints emphasises the presence of reinforcement loops that make targeting entities like high product costs ineffective. The missing piece to complete the puzzle is solving a logic block representing the product’s market competitiveness depending on economic and technical factors. This study suggests that combining market-driven innovation and commercialisation is likely the only long-term solution to the lack of commercial success of the technology. However, the work also highlights limitations in the proposed methodology and solutions. To tackle these, the authors suggest and introduce numerical frameworks based on the Theory of Constraint.