What is TOC?

The Wikipedia definition of  TOC says:

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.[1] 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 focussing steps:

  1. Identify the constraint.
  2. Decide how to exploit the constraint.
  3. Subordinate (Synchronize) all other decisions to the previous step.
  4. Improve the constraint.
  5. Go back to step 1 and avoid inertia!

 

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.
  • Supply Chain applications: Supply-Chain synchronization techniques for reaching best delivery performance with minimal inventory in Retail; Business to Business; Purchase and internal TOC-replenishment.
  • Project management application (Critical chain) for securing project delivery and managing multi-project environments.
  • A management toolbox for developing new strategies and tactics.
  • Tactics to attack the market constraints.