Theory of Constraints (TOC)

Notes

• This theory states that the way to improve throughput is to speed up the longest step of the system, also known as "elevating the constraint."
• The longest step of your workflow is a constraint on your throughput.
• If the quick steps of your system can produce five items per week (assuming a five-day workweek) and one always takes a week, the overall throughput remains one item per week.
  • If not controlled, the quick steps would build up an inventory of incomplete work, raising WIP and thus slowing your response time.
• The quick steps might keep your cycle time short, but they don't impact your throughput.

References

Backlinks

• The Principles of Product Development Flow
• The Kanban System Doesn't Make Assumptions About the Location of Bottlenecks