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Theory of Constraints for Business Improvement

Introduction

Why this course

Use the Theory of Constraints (TOC) to examine what limits a system’s progress towards its goal. Identify a constraint, focus improvement effort and assess how changes affect the wider process through business and service examples.

A constraint is a system-level limiting factor, not a claim that one dissatisfied employee inevitably ruins an organisation. The programme encourages process analysis and evidence-based improvement rather than blame.

Learning outcomes

Learning outcomes

  • Explain TOC concepts, philosophy and types of constraints.
  • Apply the Five Focusing Steps to a business example.
  • Relate operational measures to system-level goals and constraints.
  • Compare TOC and lean thinking and evaluate a service-process case.
Prerequisites

Prerequisites

No specific prerequisites.

Training outline

4 modules

·
01TOC concepts and simple reasoning1 topics
  • What is the Theory of Constraints

The pigeonhole principle as an example of simple mathematical reasoning; distinguish this analogy from the TOC improvement method.

  • Types of Constraints

Philosophical assumptions

Discuss convergence, consistency and respect as assumptions of the approach, not proven universal properties of organisations.

02The Five Focusing Steps5 topics
  • Identify the system constraint in relation to the goal.
  • Exploit it: make better use of the existing constrained resource.
  • Subordinate other work to that decision.
  • Elevate the constraint where justified.
  • Repeat when the constraint changes and avoid inertia.
03Business and service applications1 topics
  • Business examples of TOC application
  • How the Theory of Constraints works in service organizations
  • Establishing relationship between operational measures and Theory of Constraints
04Comparison and case analysis1 topics
  • Comparison of lean thinking with Theory of Constraints
  • Case Study
  • Conclusions

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Theory of Constraints for Business Improvement