TOC Overview


The Theory of Constraints (TOC), founded by Dr. Eliyahu M. Goldratt, is a system approach that developed into a management philosophy. TOC is integrating strategy, tactics, planning, control, prioritization, measurement and improvement into a logical holistic system. Due to its common sense logic and impressive results in various kinds of industries and organizations TOC is more and more regarded as the best way of managing organizations, companies and entire supply chains.

 

From its origin TOC has one clear objective: to enable organizations to achieve more of its goal. If profitability is the goal of the organization, solid bottom line results are the orientation of TOC.

 

More than anything else, TOC is targeted at people’s understanding of systems and system behaviour. Having a more realistic and practical understanding of systems enables managers to identify the very few factors that are controlling the performance of the whole system. TOC calls those factors – “the constraints”. Managing and solving these constraints is the leverage point for remarkable bottom line improvements.

 

 

 

The Logical Base of TOC

TOC is established upon solid effect-cause-effect logic. Its logical base is the Thinking Processes (TP), a set of logical tools developed in the late 1980s and early 1990s, which provide a framework to apply causality and sufficiency logic on human based systems in a systematic way.

 

The use of the TP reduces the complexity of describing systems and system behaviours dramatically, while at the same time it improves the relevant perception of the system. Mastering the TP leads to more effective and profound answers to the three generic management questions:

 

 

 

Successful TOC User

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Unternehmen, welche den systemischen Ansatz der Theory of Constraints nutzen