The Theory of Constraints (TOC) is a management methodology that helps organizations identify the most significant limiting factor (bottleneck) preventing them from achieving their goals. Developed by Dr. Eliyahu Goldratt in the 1980s, TOC is based on the idea that every system has a constraint—a point of weakness or limitation—that determines its overall output. By focusing on resolving this constraint, businesses and project teams can improve efficiency, productivity, and performance.
Five Steps of TOC:
- Identify the Constraint: Find the bottleneck slowing progress.
- Exploit the Constraint: Maximize its capacity without major investment.
- Subordinate Other Processes: Align other tasks to optimize the constraint.
- Elevate the Constraint: Invest in improvements to remove the bottleneck.
- Repeat: Once one constraint is removed, another will emerge.
Applications in Project Management:
- Helps optimize resource allocation.
- Improves workflow efficiency.
- Reduces delays in complex projects.
