What is the Theory of Constraints?
The Theory of Constraints (TOC) is a managerial philosophy evolving since the early 1980s. This systems-based approach to management, primarily credited to Eliyahu M. Goldratt, uses logic to reveal the principal relationships responsible for an organization’s performance. The theory has three major components: a set of fundamental assumptions, a five-step focusing process, and a set of logic tools to enable the focusing process. TOC seeks to determine and eliminate the root cause of system-wide problems in support of continuous improvement. Since its initial presentation, it has seen rapid adoption and use in many areas of the business world. It is now seen in the non-profit sector particularly in health care and education and all levels of government.
Theory of Constraints (TOC) Resources