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Theory of Constraints
Theory of Constraints is based on the premise that the rate of achievement is limited by at least one constraining process. Only by increasing flow through the constraint can overall throughput be increased.
Assuming the goal of the organization has been established then the steps are:
- Identify the constraint (the resource or policy that prevents the organization from obtaining more of the goal)
- Decide how to exploit the constraint (get the most capacity out of the constrained process)
- Subordinate all other processes to above decision (align the whole system or organization to support the decision made above)
- Elevate the constraint (make other major changes needed to break the constraint)
- If, as a result of these steps, the constraint has moved, return to Step 1. Don't let inertia become the constraint.
The five focusing steps aim to ensure ongoing improvement efforts are centered around the organization's constraints. This is referred to as the "Process of Ongoing Improvement" (POOGI).
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