Goldratt also provides a foundation for achieving change through TOC by defining a set of three essential measurements that drive the change process. TOC is an on-going process, and the inertia that can build up after a change occurs can actually serve to prevent continuous improvement. Goldratt cautions practitioners about becoming complacent.

Return to Step One, But Beware of “Inertia”.

Major changes to the existing system are considered at this step. This step is only considered if steps two and three have not been successful. “Elevating” the constraint refers to taking whatever action is necessary to eliminate the constraint. If the constraint has been eliminated, the change agent jumps to step five. Once this has been done, the overall system is evaluated to determine if the constraint has shifted to another component. The non-constraint components of the system must be adjusted to a “setting” that will enable the constraint to operate at maximum effectiveness. An example is to reduce or eliminate the downtime of bottleneck operations. Goldratt instructs the change agent to obtain as much capability as possible from a constraining component, without undergoing expensive changes or upgrades. The part of a system that constitutes its weakest link can be either physical or a policy. The Five Steps of the Theory of Constraints Since the focus only needs to be on the constraints, implementing TOC can result in substantial improvement without tying up a great deal of resources, with results after three months of effort. In The Goal, Goldratt proves that most organizations have very few true constraints. TOC conceptually models this system as a chain, and advocates the familiar adage that a “chain is only as strong as its weakest link.” Goldratt defines a five-step process that a change agent can use to strengthen the weakest link, or links. Most businesses can be viewed as a linked set of processes that transform inputs into saleable outputs.

The Theory of Constraints defines a set of tools that change agents can use to manage constraints, thereby increasing profits.

However, many non-manufacturing constraints exist, such as market demand, or a sales department’s ability to translate market demand into orders. The Goal focuses on constraints as bottleneck processes in a job-shop manufacturing organization. A constraint is any factor that limits the organization from getting more of whatever it strives for, which is usually profit. The essential concept of TOC is that every organization must have at least one constraint.

The Theory of Constraints is an organizational change method that is focussed on profit improvement.

Goldratt and Jeff Cox in 1984, and compares it with Lean Thinking, as described by James P. The following article reviews the Theory of Constraints ( TOC), first published in The Goal by Eliyahu M.

The goal eliyahu goldratt sparknotes