How should you choose the best approach in each step? The Theory of Constraints includes a specialized framework to inform these choices, called Throughput Accounting. Steps 2, 3, and 4 of the Five Focusing Steps require some operational decisions. Don’t let complacency become the new constraint! Throughput Accounting
If the same constraint is still in effect, what else can you do to improve your system? If you’ve overcome the original limitation, “breaking the constraint,” then what is the new constraint to focus on? Applying the Theory of Constraints is an ongoing process it only stops when you don’t want to make more money. You’ve made it to the last step! Go back to the first step and repeat the process. The core question is simple: what can you do to change your limitation? Repeat This step may involve changing equipment or processes dramatically, and may prompt more in-depth planning and research. The next step is to elevate the constraint itself – that is, increase the productivity cap the constraint imposes. What other elements need to change to keep the constraint as productive as possible? ElevateĪt this point, your production process is using the constraint as effectively as it can.
#Theory of constraints full
Instead, each part of the process should support the full exploitation of the constraining element. This can be counter-intuitive at first, because non-constraint elements of your production system may not need to function at their “most productive” level. You’ve identified the limiting element what about that element needs to change in order for it to work at its best? SubordinateĪfter making decisions around the constraint itself, it’s time to subordinate the rest of the production system to those decisions. These are “quick wins” that should be implemented as soon as possible. There are probably several small adjustments that can be made right at the point of work. Next, find ways to exploit the constraint - that is, to get the most use out of what is already there. If so, come back to this step and start the process again. What one thing is holding your system back from being more productive? After each change to your system that you make in the later steps, see if the constraint has changed. This may be a limitation of equipment or space, a company policy or attitude, or even an external constraint like a lack of customers. You need to understand your production process, and be able to name its single most significant limitation. That weak spot provides a clear focus point, around which the most valuable improvements to your system can be made. While it’s common sense that a process is “no stronger than its weakest link,” the Theory of Constraints emphasizes that it’s far more practical to work with your weak spot than to eliminate it. Eli Goldratt in his book The Goal, asserts that there is typically a single bottleneck that limits productivity. What is it? The Theory of Constraints, introduced by Dr. Something is holding back your company’s productivity.
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