Theory of constraints (TOC)

Concept

A management approach by Eliyahu Goldratt which says that every system has one constraint that limits its output. Improving anything else does not raise output.

Description

The theory of constraints was developed by Eliyahu Goldratt and made known by his novel The Goal. Its central idea is that every system has at least one constraint, the resource that limits how much the whole system can deliver. An hour gained at the constraint is an hour gained for the whole plant. An hour gained elsewhere is mostly wasted.

The method works in five focusing steps: find the constraint, get the most out of it, align everything else to its pace, raise its capacity if needed, and then look again, because the constraint may have moved. In production the idea leads to a protected buffer in front of the bottleneck and to schedules built around it. It is the basis of drum-buffer-rope scheduling.

Glossary

Experts and companies for this topic

• Mirko Peters · Microsoft MVP

Maintained by Mirko Peters (Microsoft MVP) · Last updated: 2026-11-11