The Four Basic Constructs Of Theory Of Constraints (ToC)

1 - A logical thinking process to enable an organizational management team to revisit and challenge underlying assumptions, identify limitations and diminish them. As such, it offers an approach for pursuing continuous improvement.

2 - The five focusing steps of ToC are:

  1. Identify the system constraint
  2. Decide how to exploit the system constraint
  3. Subordinate everything else to the above decision
  4. Elevate the System Constraint
  5. Go back to step 1

3 - Logistical tools that have sprung from ToC include: Drum, Buffer, Rope; Replenishment, Critical Chain; and Buffer Management.

4 - Performance Metrics are embodied in ToC's throughput accounting measurements which often drive decisions that are counter to those driven by traditional cost accounting metrics.