Theory of Constraints

Resource in complexity

The Goal by Eliyahu Goldratt is one of my favourite business books. It’s very readable and I’d highly recommend getting it.

TOC is a methodology for identifying the most important constraint standing in the way of achieving a goal (aka bottleneck); then systematically improving that constraint until it is no longer the limiting factor.

The five focussing steps

• Identify the system’s constraint(s).
• Decide how to exploit the system’s constraint(s).
• Subordinate everything else to the above decision(s).
• Alleviate the system’s constraint(s).
• Warning! If in the previous steps a constraint has been broken, go back to step 1, but do not allow inertia to cause a system’s constraint. In other words, don’t stop!

The thinking process - steps for getting buy-in for initiating improvements.

• Gain agreement on the problem
• Gain agreement on the direction for a solution
• Gain agreement that the solution solves the problem
• Agree to overcome any potential negative ramifications
• Agree to overcome any obstacles to implementation