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Theory Of Constraints (ToC)

The Theory of Constraints, developed by Eliyahu M. Goldratt, is built around a deceptively simple idea: every complex system has at least one limiting factor (a constraint) that determines its overall performance. By identifying and improving this constraint, you can dramatically improve the entire system.

🔧 Core Principles

  • Focus on the Bottleneck: In any workflow or process, there's always one step that limits throughput. That step is your constraint.
  • Optimize Around It: Rather than optimizing everything, TOC says to channel effort into improving or managing the constraint.
  • System-Wide Impact: Fixing the constraint boosts overall productivity far more than unrelated improvements.

🧭 The Five Focusing Steps

TOC uses a cyclical method for continuous improvement:

0 - Agree on the goal - What is the goal of the system? 1 - Identify the Constraint – Find the system's weakest link. 2 - Exploit the Constraint – Use it to its full capacity without major investment. 3 - Subordinate Everything Else – Align the whole system to support the constraint. 4 - Elevate the Constraint – If needed, invest resources to break the bottleneck. 5 - Repeat – Once the constraint shifts, go through the steps again.

Step 0: Decide What to Change

Before diving into the five focusing steps, Step Zero asks you to define the problem. You can't improve a system unless you're clear on:

  • What the current system is doing
  • Why it isn’t achieving the desired outcome
  • What metrics define success

In TOC terms, this means stepping back and asking:

“What’s the core conflict or undesired effect in the system right now?”

This pre-work helps avoid improving the wrong thing. It’s especially important when the constraint isn’t obvious—or when symptoms mask root causes. Step Zero is like orienting your compass before the expedition—it doesn’t feel like motion, but it's what makes the journey meaningful.