A systematic approach to identify and manage system constraints

The Five Focusing Steps - Theory of Constraints

Locate the constraints that limit the system's performance. These could be physical resources, policies, or processes that restrict throughput.

Step 1: Identify the System's Bottlenecks

Make sure the bottlenecks' time is not wasted, take some of the load off the bottlenecks and give it to non-bottlenecks.

Step 2: Exploit the Bottlenecks

Align all other system components to support the maximum effectiveness of the bottleneck/constraint. This may involve adjusting the pace of non-bottleneck resources.

Step 3: Subordinate Everything Else

If previous steps aren't sufficient, take major actions to eliminate the constraint. This might require significant investment or fundamental changes.

Step 4: Elevate the System's Bottlenecks

If, in a previous step, a bottleneck has been broken go back to step 1. - Once a bottleneck is resolved, return to the first step to identify new constraints. This creates a cycle of continuous improvement.

Step 5:

the capacity of a system is equal to the capacity of its bottlenecks meaning that it doesn’t matter how much you optimize other parts of the system if you dont focus on the bottlenecks you will not increase the output!

The major takeaway:

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"This book, which introduces the Theory of Constraints, is changing how America does business. The Goal is a gripping, fast-paced business novel about overcoming the barriers to making money. Over 2 million copies sold! Used by thousands of companies and hundreds of business schools! Required reading for anyone in the Theory of Constraints. This book, which introduces the Theory of Constraints, is changing how America does business. The Goal is a gripping, fast-paced business novel about overcoming the barriers to making money. You will learn the fundamentals of identifying and solving the problems created by constraints. From the moment you finish the book you will be able to start successfully addressing chronic productivity and quality problems."--Proporcionado por la editorial.

The Goal

Grady Harwood