Theory of Constraints (TOC)

The theory of constraints holds that any system's output is limited by a single bottleneck, so the fastest way to improve throughput is to find that constraint and exploit it — rather than optimising everywhere. Improving non-bottlenecks adds cost without adding output.

TOC's five focusing steps are: identify the constraint, exploit it (get the most from it), subordinate everything else to it, elevate it (add capacity if still limiting), then repeat as the constraint moves. It reframes improvement around throughput, inventory and operating expense, and explains why local efficiency drives — common in maintenance and production — often fail to lift overall output.

Related terms

Lean Manufacturing · Value Stream Mapping (VSM) · OEE (Overall Equipment Effectiveness)