Theory of Constraints

What is it?
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 and then systematically improving that constraint until it is no longer the limiting factor. In manufacturing, the constraint is often referred to as a bottleneck.

How it is done

TOC and Operations Mgmt.

Seeks to pull materials through the system, rather than push them into

the system. The primary methodology used is drum-buffer-rope (DBR). The drum is the physical constraint of the plant: the work center or machine or operation that limits the ability of the entire system to produce more. The buffer protects the drum, so that it always has work flowing to it. The rope is the work release mechanism for the plant.

Applications
Operations

Supply chain / logistics

Finance and accounting Project management Marketing and sales

Littles Law