Theory of Constraints (TOC)

By: A Staff Writer

Updated on: Jul 19, 2024

What: Seeks out the biggest constraint (bottleneck) in a system as that’s what limits overall output. Focuses relentlessly on improving that one area.

Who: Eliyahu Goldratt popularized it in his novel “The Goal.”

Why: Entrepreneurs rarely have unlimited resources, so it forces maximizing the impact of limited time/money.

When: If production is backed up, if you’re constantly missing deadlines, or when growth seems blocked for unclear reasons.

How:

1. 1. Identify your biggest constraint.
   2. Subordinate everything else to improving that point.
   3. Once improved, find your new biggest constraint… and repeat.