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Theory of constraints

The theory of constraints (TOC) 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. There is always at least one constraint, and TOC uses a focusing process to identify the constraint and restructure the rest of the organization around it. TOC adopts the common idiom "a chain is no stronger than its weakest link". That means that organizations and processes are vulnerable because the weakest person or part can always damage or break them, or at least adversely affect the outcome.

Equipment: The way equipment is currently used limits the ability of the system to produce more salable goods/services.

People: Lack of people limits the system. Mental models held by people can cause behaviour that becomes a constraint.

skilled

Policy: A written or unwritten policy prevents the system from making more.

To create and enhance thinking and learning skills

To make better decisions

To develop responsibility for one's own actions through understanding their consequences

To handle conflicts with more confidence and win-win outcomes

To correct behavior with undesirable consequences

Assist in evaluating conditions for achieving a desired outcome

To assist in peer mediation

To assist in relationship between subordinates and bosses

The thinking processes are a set of tools to help managers walk through the steps of initiating and implementing a project. When used in a logical flow, they help walk through a buy-in process:


TOC practitioners sometimes refer to these in the negative as working through layers of resistance to a change.


Recently, the current reality tree (CRT) and future reality tree (FRT) have been applied to an argumentative academic paper.[20]


Despite its origins as a manufacturing approach (Goldratt & Cox, The Goal: A process of Ongoing Improvement, 1992), Goldratt's Theory of Constraints (TOC) methodology is now regarded as a systems methodology with strong foundations in the hard sciences (Mabin, 1999). Through its tools for convergent thinking and synthesis, the "Thinking processes", which underpin the entire TOC methodology, help identify and manage constraints and guide continuous improvement and change in organizations (Dettmer H. , 1998).


The process of change requires the identification and acceptance of core issues; the goal and the means to the goal. This comprehensive set of logical tools can be used for exploration, solution development and solution implementation for individuals, groups or organizations. Each tool has a purpose and nearly all tools can be used independently (Cox & Spencer, 1998). Since these thinking tools are designed to address successive "layers of resistance" and enable communication, it expedites securing "buy in" of groups. While CRT (current reality tree) represents the undesirable effects of the current situation, the FRT (the future reality tree), NBR (negative branch) help people plan and understand the possible results of their actions. The PRT (prerequisite tree) and TRT (transition tree) are designed to build collective buy in and aid in the Implementation phase. The logical constructs of these tools or diagrams are the necessary condition logic, the sufficient cause logic and the strict logic rules that are used to validate cause-effect relationships which are modelled with these tools (Dettmer W. , 2006).


A summary of these tools, the questions they help answer and the associated logical constructs used is presented in the table below.


TOC Thinking Process Tools: Use of these tools are based on the fundamental beliefs of TOC that organizations a) are inherently simple (interdependencies exist in organizations) b) desire inherent harmony (win – win solutions are possible) c) are inherently good (people are good) and have inherent potential (people and organizations have potential to do better) (Goldratt E. , 2009). In the book "Through the clouds to solutions" Jelena Fedurko (Fedurko, 2013) states that the major areas for application of TP tools as:

Development and practice[edit]

TOC was initiated by Goldratt, who until his death was still the main driving force behind the development and practice of TOC. There is a network of individuals and small companies loosely coupled as practitioners around the world. TOC is sometimes referred to as "constraint management". TOC is a large body of knowledge with a strong guiding philosophy of growth.

Certification and education[edit]

The Theory of Constraints International Certification Organization (TOCICO) is an independent not-for-profit incorporated society that sets exams to ensure a consistent standard of competence. It is overseen by a board[32] of academic and industrial experts. It also hosts an annual international conference. The work presented at these conferences constitutes a core repository of the current knowledge.

Index of articles related to the theory of constraints

Linear programming

Industrial engineering

Limiting factor

by Donella Meadows

Twelve leverage points

Constraint (disambiguation)

Thinklets

Throughput

Rate-determining step

Liebig's law of the minimum

Cox, Jeff; Goldratt, Eliyahu M. (1986). . [Great Barrington, Massachusetts]: North River Press. ISBN 0-88427-061-0.

The goal: a process of ongoing improvement

Dettmer, H. William. (2003). Strategic Navigation: A Systems Approach to Business Strategy. [Milwaukee, Wisconsin]: ASQ Quality Press. p. 302.  0-87389-603-3.

ISBN

Dettmer, H. William. (2007). The Logical Thinking Process: A Systems Approach to Complex Problem Solving. [Milwaukee, Wisconsin]: ASQ Quality Press. p. 413.  978-0-87389-723-5.

ISBN

Goldratt, Eliyahu M. (1994). . [Great Barrington, Massachusetts]: North River Press. ISBN 0-88427-115-3.

It's not luck

Goldratt, Eliyahu M. (1997). Critical chain. [Great Barrington, Massachusetts]: North River Press.  0-88427-153-6.

ISBN

Carol A. Ptak; Goldratt, Eliyahu M.; Eli Schragenheim (2000). . [Great Barrington, Massachusetts]: North River Press. ISBN 0-88427-170-6.

Necessary But Not Sufficient

Goldratt, Eliyahu M. (1998). Essays on the Theory of Constraints. [Great Barrington, Massachusetts]: North River Press.  0-88427-159-5.

ISBN

Goldratt, Eliyahu M. (1990). Theory of Constraints. [Great Barrington, Massachusetts]: North River Press.  0-88427-166-8.

ISBN

Goldratt, Eliyahu M. Beyond the Goal : Eliyahu Goldratt Speaks on the Theory of Constraints (Your Coach in a Box). Coach Series.  1-59659-023-8.

ISBN

Lisa Lang (January 2006). Achieving a Viable Vision: The Theory of Constraints Strategic Approach to Rapid Sustainable Growth. Throughput Publishing, Inc.  0-9777604-1-3.

ISBN

Goldratt, Eliyahu M. (1990). . [Great Barrington, Massachusetts]: North River Press. ISBN 0-88427-089-0.

The haystack syndrome: sifting information out of the data ocean

Fox, Robert; Goldratt, Eliyahu M. (1986). . [Great Barrington, Massachusetts]: North River Press. ISBN 0-88427-062-9.

The race

Schragenheim, Eli. (1999). Management dilemmas. [Boca Raton, Florida]: St. Lucie Press. p. 209.  1-57444-222-8.

ISBN

Schragenheim, Eli & Dettmer, H. William. (2000). Manufacturing at warp speed: optimizing supply chain financial performance. [Boca Raton, Florida]: St. Lucie Press. p. 342.  1-57444-293-7.

ISBN

Schragenheim, Eli, Dettmer, H. William, and Patterson, J. Wayne. (2009). Supply chain management at warp speed: integrating the system from end to end. [Boca Raton, Florida]: . p. 220. ISBN 978-1-42007-335-5.{{cite book}}: CS1 maint: multiple names: authors list (link)

CRC Press

Lepore & Cohen, Domenico & Oded (1999). Deming and Goldratt: The Decalogue. Great Barrington (Massachusetts): North River Press. p. 179.  0884271633.

ISBN

John Tripp TOC Executive Challenge A Goal Game.  0-88427-186-2

ISBN

Goldratt, Eliyahu M. (2003). Production the TOC Way with Simulator. North River Press, Great Barrington, Massachusetts.  0-88427-175-7.

ISBN

Stein, Robert E. (3 June 2003). Re-Engineering The Manufacturing System. Marcel Dekker.  0-8247-4265-6.

ISBN

Stein, Robert E. (14 February 1997). The Theory of Constraints. Marcel Dekker.  0-8247-0064-3.

ISBN

Jacob, Dee; Bergland, Suzan; Cox, Jeff (29 December 2009). Velocity: Combining Lean, Six Sigma and the Theory of Constraints to Achieve Breakthrough Performance. Free Pre. p. 320.  978-1439158920.

ISBN

Dettmer, H (1998). (PDF).

Constraint Theory A Logic-Based Approach to System Improvement

Fedurko, J. Through Clouds to Solutions: Working with UDEs and UDE clouds. Estonia: Ou Vali Press.

A Guide to Implementing the Theory of Constraints

Five focusing Steps

Theory of Constraints Essentials

Theory of Constraints: A Research Database