Theory Of Constraints (TOC)


Since 1988 Theory of Constraints has been our chosen first-line technology for helping clients achieve massive performance improvements quickly, and sustain them (or even improve on them) after our involvement with the project is over.

TOC is an amazing technology, in an entirely different league to Lean Manufacturing and Six Sigma – the technologies with which Theory of Constraints is most often compared. No, I'm not saying this in a critical or negative manner – it's simply reality, and Yes – we can back it up. If you take the time to understand the Theory of Constraints you'll understand and agree with the claim.

But Theory of Constraints also works beautifully with Lean and Six Sigma. Take a look at this case study of a 21-plant contest over 2 years between TOC, Lean and Six Sigma.

The 6 plants out of 21 where Theory of Constraints was the first-line technology achieved 89% of ALL the benefits recorded by all 21 plants! Stand-alone Six Sigma achieved only 7% of total benefits; stand-alone Lean, 4%.

At the bottom of this page you'll find links to pages describing many of the elements of Theory of Constraints (including some comparisons with other technologies).

If you're looking for the Production solution (aka Synchronous Manufacturing, or Drum-Buffer-Rope), or Throughput Accounting, or the Distribution/Supply Chain solution, or Critical Chain Project Management ... then click on the link below to "Theory of Constraints Applications." These are the 4 most-used Theory of Constraints applications.

But there's a lot more to the TOC than just these applications.

For example the Marketing solution and Sales solution are powerful beyond most companies' understanding.

They form the backbone of the new Viable Vision program, where some TOC consultants offer qualified clients a program such that the client's Net profit in 4 years will equal or exceed their revenues today – with as much as 90% of the total consulting fee payable ONLY when revenue, net profit and productivity targets have been met over the four years.

There is simply no equivalent of the Sales and Marketing solutions in Lean, or Six Sigma. Again, I'm not levelling a criticism - this is just a fact.

 

Here are the main links to follow if you want to learn more about Theory of Constraints:

A review of the 8 Theory of Constraints Applications

An explanation of the 5 Focusing Steps of the TOC

Case studies and testimonials ... case studies of how we applied the TOC in widely different environments, the types of results we obtained, and comments from clients ... going back more than 15 years.

An introduction to the Viable Vision program

Seminars and workshops (public and company-dedicated)

The TOC Thinking Processes that most people don't even know exist.

Books dedicated to TOC topics

The little known application of TOC to getting a "buy in" of any kind internally – very powerful, and a cornerstone of how we get such great buy-in from our client's employees at all levels

A comparison of TOC with Lean Thinking – and how they work together

A comparison with Six Sigma – and how they work together

Comments on Eli Goldratt and his seminal book "The Goal"

Or ... you can return to the home page: Fast, massive performance improvement