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The Theory of Constraints

The Theory of Constraints (TOC) is an operational management approach developed by Dr. Eliyahu M. Goldratt and introduced in 1984. It was designed around the idea that complex systems are inherently simple and can tie all of the troubles they experience down to a single root conflict. For his approach Dr. Goldratt maintained that the three primary metrics of a business are throughput, operational expense, and inventory.

TOC addresses change and does so by answering three questions

  • what to change
  • what to change to
  • how to cause the change.

Dr. Goldratt created a series of tools to aid in answering these questions. Notable tools include

  1. The five focusing steps
  2. Conflict clouds
  3. The Thinking Process
  4. Drum Buffer Rope (DBR)
  5. Strategy and Tactic tree
  6. Viable Vision.

The latest developments in TOC offer holistic solutions and touch on such areas as project management, accounting, supply chain and the sales process.

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8 responses to “The Theory of Constraints”

  1. Where to Invest Into Your Small Business

    […] the theory of constraints (TOC) as a tool to direct our efforts the first step is to identify the constraint. What is the […]

    Reply
  2. Five Focusing Steps

    […] the changes required can be made easier with a few simple steps. One of the strengths of the Theory of Constraints is its focus on continuous improvement. Business by nature is constantly changing and any process […]

    Reply
  3. Conflict Clouds – Evaporating Clouds

    […] Clouds, also known as Evaporating Clouds, are a  conflict resolution tool used in the theory of constrains to maintain the  logical integrity of two mutually exclusive events and their existence for a  […]

    Reply
  4. The Competitive Advantage Spectrum

    […] can be out performed. This will also help you to not give away your competitive advantage. In the Theory of Constraints the Viable Vision is often achieved by providing quality products quickly at a premium. This means […]

    Reply
  5. Steps to Saving a Company, Business Triage

    […] The bottom line, changes need to be made. These changes need to be ones to the core conflict/s of the organization, not just the symptoms. All businesses at one point or another will find themselves in a position of reacting to market change. Advents of technology and the natural maturing of market needs are always in flux and will probably require you to take a second look at your business some day. Two great tools to aid in these efforts are The Thinking Process and the Five Focusing Steps of the Theory of Constraints. […]

    Reply
  6. How to Become a Business Owner, The Layers of Resistance

    […] why the majority of people choose not to break out on their own. These layers come to us from the Theory of Constraints (TOC) and fit into the basic three questions TOC seeks to answer; what to change, what to change […]

    Reply
  7. Steps to Saving a Company, Triage in Business – SHY Entrepreneur.com

    […] The bottom line, changes need to be made. These changes need to be ones to the core conflict/s of the organization, not just the symptoms. All businesses at one point or another will find themselves in a position of reacting to market change. Advents of technology and the natural maturing of market needs are always in flux and will probably require you to take a second look at your business some day. Two great tools to aid in these efforts are The Thinking Process and the Five Focusing Steps of the Theory of Constraints. […]

    Reply
  8. Five Focusing Steps – SHY Entrepreneur.com

    […] the changes required can be made easier with a few simple steps. One of the strengths of the Theory of Constraints is its focus on continuous improvement. Business by nature is constantly changing and any process […]

    Reply

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