What is Theory of Constraints ?
The Theory of Constraints is a methodology for identifying the most important limiting factor (i.e. constraint) that stands in the way of achieving a goal for an organisation and then systematically improving that constraint until it is no longer the limiting factor. The Theory of Constraints takes a scientific approach to improvement. It hypothesizes that every complex system, as a real business is, consists of multiple linked activities, one of which acts as a constraint upon the entire system (i.e. the constraint activity is the “weakest link in the chain”). So what is the ultimate goal of most companies? To make a profit – both in the short term and in the long term. The Theory of Constraints provides a powerful set of tools for helping to achieve that goal.