What is TOC?
Theory of Constraints (TOC) is an overall management philosophy introduced by Dr. Eliyahu M. Goldratt in his 1984 book titled The Goal, that is geared to help organizations continually achieve their goal. The title comes from the contention that any manageable system is limited in achieving more of its goal by a very small number of constraints, and that there is always at least one constraint. The TOC process seeks to identify the constraint and restructure the rest of the organization around it, through the use of the Five Focusing Steps.
The Five Focusing Steps
TOC body of knowledge
Year by year new pieces of know-how and detailed applications have been elaborated, which created a vast body of knowledge that is spread through the channels of the Goldratt Network. This network also secures the transfer of new developments and updates.
The TOC body of knowledge contains:
Production applications for reaching high due-date performance with improved T/OE (Throughput/operating expense ratio): DBR, SDBR and Buffer Management in make-to-stock and make-to-order manufacturing.
Managing Multi-plant productions by synchronizing the activities for the best possible global result.
Supply Chain applications: Supply-Chain synchronization techniques for reaching the best delivery performance with minimal global inventory, including links to suppliers and customers.
Project management application (Critical chain) for securing project delivery and managing multi-project environments.
A management toolbox to develop and manage new strategies and tactics, based on the TOC – TP techniques. (TP = Thinking Processes)
Strategies and Tactics to break the Market constraints using numerical and logical TOC-techniques.