Theory of Constraints (TOC) provides a framework to identify, exploit, set pace and elevate* the constraint, or put in simpler words: identify the bottleneck in the process and make the best with it. *Identify, exploit, subordinate, elevate and prevent inertia are known as the “five focusing steps” of Theory of Constraints. In this constraint or … Continue reading TOC-based decision for best product mix
Theory of Constraints provides the five focusing steps, an iterative improvement process which aims to focus efforts on the sole system constraint (often a bottleneck). These five steps are: Identify the constraint (bottleneck) Exploit the constraint; improve capacity utilization Subordinate all non-constraint resources to the constraint Increase the capacity of constraint if relevant Repeat step … Continue reading Your next bottleneck is elsewhere (and in the future)
In the following video interview, Philip Marris (answering Clarke Ching’s questions) states that the five focusing steps of Theory of Constraints are wrong! Well it needs some more listening to understand the wisdom behind the provocative statement. First, the five focusing steps (5FS) are basically ok. What bothers Philip is the fifth step after the … Continue reading Beware of bottleneck hunting!
In Theory of Constraints lingo, there is a subtle difference between a constraint and a bottleneck. A bottleneck (resource) is a resource with capacity less or equal to demand while a constraint is a limiting factor to organization’s performance, an obstacle to the organization achieving its goal. A constraint can be called bottleneck but a … Continue reading Constraint vs. bottleneck