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Theory Of Constraints

A constraint is like the weak link in a chain or bottleneck, it limits the overall capacity of the system.
TOC shows us to prioritise how we focus our resources to maximise the return on our efforts and time, with the 5 focusing steps:
  1. Identify the system’s constraint
  2. Exploit the system’s constraint
  3. Subordinate everything else to the above decision.
  4. Elevate the system’s constraint
  5. Go Back - If the constraint is broken, go back to step 1.

This gives very quick results which immediately add to the bottom line by increasing sales. The reason for this is that TOC focuses on increasing the Throughput of the system, which generates more revenue, as opposed to reducing inventory and operating expense which have limits on their returns.

TOC has well developed solutions for Operations, Distribution, Project Management & Marketing in order to increase the capacity of these systems.