The Theory of Constraints (TOC) is a management paradigm that views any system as being limited in achieving more of its goals by a very small number of constraints. Developed by Dr. Eliyahu M. Goldratt in his 1984 book, "The Goal," the theory posits that there is always at least one constraint that acts as a bottleneck in any system, limiting its output. The TOC aims to identify this constraint and restructure the rest of the organisation around it, with the ultimate objective being to alleviate the limiting factor. In essence, TOC provides a set of tools and principles designed to help organisations continually achieve their goals by identifying and managing constraints.
Origin of the Theory of Constraints
The Theory of Constraints was created by Dr. Eliyahu M. Goldratt, an Israeli physicist and management consultant. He introduced the concept in his 1984 book, "The Goal," which has since become a best-selling business book. The theory has been widely adopted and is considered a cornerstone in operations management, project management, and various other management disciplines. Dr. Goldratt's work has had a significant impact on how organisations think about bottlenecks, constraints, and process optimisation.