The Theory of Constraints is a management paradigm that views any manageable system as being limited in achieving more of its goals by a very small number of constraints. Developed by Dr. Eliyahu M. Goldratt, it's a powerful tool used in operational management to identify the most critical limiting factor (constraint) and systematically improve it. The aim is to continually achieve better performance in terms of throughput, operational efficiency, and profitability.

Framework Principles

1. Identify the Constraint: Determine the bottleneck or constraint that is most impeding progress.

2. Exploit the Constraint: Maximize the efficiency and capacity of the constraint without incurring major costs.

3. Subordinate Everything Else: Align all other processes to support the constraint, ensuring it operates at maximum effectiveness.

4. Elevate the Constraint: If necessary, take actions like adding resources or capacity to break the constraint.

5. Repeat the Process: After breaking a constraint, identify the next one and repeat the process to foster continuous improvement.

Practical Application

Sample companies