What is the Theory of Constraints?

ToC is a set of holistic processes and insights, all based on a systems approach that simplifies the improving and managing of complex organizations by focusing on the few physical and logical constraining “leverage” points. Furthermore, it provides a tool set to build and implement the “levers” (holistic rules) that will synchronize the parts to achieve an order of magnitude improvement in the performance of the system as a whole.

Eliyahu Goldratt originated the idea in his book The Goal as a way of managing the business to increase profits. ToC is a proven method that can be used by existing personnel to increase throughput (sales), reliability, and quality while decreasing inventory, WIP, late deliveries, and overtime. Successful organizations also adopt ToC to help make tactical & strategic decisions for continuous improvement.

ToC is not just a tool to manage bottlenecks. In fact, the scope of tools and breadth of application of ToC is substantial.

The crucial insight of ToC is that only a few elements (constraints) in a business control the results of the entire organization. ToC tools identify these constraints, and focus the entire organization on simple, effective solutions to problems that seemed insurmountably complex and unsolvable.

Since 1985, ToC has been delivering startling tangible results to companies worldwide. An independent study of ToC implementations around the world found average results:

	6505 W. Park, Suite 306-335 Plano, TX 75093 972.899.1734
Home \| About Pinnacle \| Articles \| Clients \| Critical Chain \|Lean \| Strategic Planning \| Theory of Constraints \| Training \| Supply Chain Management \| Contact Us

More about ToC