TOC (Theory of Constraints) is an universal analytical technique that seeks constraints in terms of defined objectives, identifies the narrowest neck of the system, especially of the procedural or power flow. It can be applied quite universally, the basic principle of Theory of Constraints is the search for the best solution to the whole organization. The basic steps in optimizing according to TOC are:
- Finding the constraints of the system
- Deciding how to best use the constraints
- Leveraging from these constraints
Eliyahu M. Goldratt is the author of this theory.
Use of the TOC in practice: TOC is a very versatile method that is used to optimize the performance and efficiency of virtually any part of the organization. Theory of Constraints can be used in production, project management, operations management, logistics, marketing, strategic management and in many other areas. It focuses on finding, recovery or disposal of the weakest point.