The theory of constraints
The theory of constraints (TOC) is a novel approach to organisations. TOC converts the traditional approach of managing processes in isolation towards managing the system as a whole. By doing this one can fully utilize the inherent capacity of the system resulting in a significantly higher level of performance: typically 20-30% improvement in a relatively short time.
In Operations (frequent activities), the approach is to identify the bottlenecks that limit the flow of activities and then focusing attention on the small number of processes. The improvement becomes sustainable by aligning people’s behaviour with the flow and buffer requirements of the system. The TOC way of managing projects deals with the inherent human nature of managing time and activities.
Please watch the video above for more explanation.
