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5 steps to fine-tune any system with TOC  by Raunak Gupta
Theory of constraints (TOC) is a continuous improvement
strategy developed by E.M. Goldratt in 1980. The theory
treats an organization like a system composed of various links
or elements primarily focused on achieving a common goal.
The core objective of any system is to earn the highest return
on investment (ROI).
A system’s productivity depends on the performance
of each individual basic link, as well as its performance as
an integrated chain. If all the links are performing with full
efficiency, the system is said to have an infinite ROI. How-
ever, such systems do not exist in reality. Every system has
at least one weak link, which is defined as a constraint. If the
constraint’s performance improves, the system’s performance
as a whole can improve.
Continuous improvement with TOC consists of a five-​step
method:
1. I dentify the constraint
Identify the system’s weakest link. This is the link that
is limiting or downgrading the system’s performance.
Identifying the constraint asks the question, “What should
change?” Management should be capable of pinpointing the
system’s core problems. These are the problems that would
have a major impact on the system after they are improved.
2. Exploit
 the constraint
Identify the different ways of improving the constraint.
Often, after one constraint is improved, the impact of
the improved constraint on the system’s improvement
isn’t regularly monitored. If the constraint is a policy,
for example, the reason for establishing the policy
may change over time. Therefore, the policy must
be redefined or changed according to market needs.
3. S
 ubordinate everything else to
the constraint
After exploiting the constraint effectively, the pace of every
nonconstraint must be set in accordance with the pace
of the constraint. Because the constraint is responsible
for generating the system’s throughput, every resource
(other than the constraint) must be synchronized with
the constraint to maximize the constraint’s use. If the
nonconstraint is used beyond its productivity, it won’t add
56 QP January 2021 ❘ qualityprogress.com
anything to the system’s performance. It
only would create more inventory, which does
not add any value to the system’s performance.
4. E
 levate the system’s constraint
The primary purpose of this step is to ensure that
if the constraint is still the most critical element in the
system after completing the first three steps, it must
be rectified with the help of additional resources.
5. I f a constraint is broken, repeat the cycle
This is the most important step of any continuous
process improvement method. If the identified constraint
is broken with the help of the first four steps, the system
must be monitored to identify another constraint. The
process is repeated for the new constraint to make
it a nonconstraint. After that, another constraint is
identified and thus the process continues.
This cycle continues until all constraints are eliminated.
Practically, a system isn’t possible without a constraint.
Therefore the continuous improvement process using
TOC is repeated again and again.
Universal improvement
TOC can be applied to improve any system in any domain,
such as production, supply chain, project management,
operations, or logistics, by focusing on a respective con-
straint to make it a nonconstraint.
BIBLIOGRAPHY
Singh, Raghuraj, Raunak Gupta, P.L. Verma and Lokesh Bajpai,
“Theory of Constraints: Strategy for Continuous Improvement,”
International Journal of Mechanical and Production Engineering,
Vol. 6, No. 1, 2018, pp. 66-69.
iStock.com/Dmitrii_Guzhanin
Raunak Gupta is an assistant professor in
the mechanical engineering department
at Quantum University in Roorkee, India.
Gupta received a master’s degree in
computer integrated manufacturing from
the Samrat Ashok Technological Institute
in Vidisha, India.
Reproduced with permission of copyright owner. Further reproduction
prohibited without permission.