What is Theory of Constraints?

The Theory of Constraints (TOC) is a management philosophy developed by Dr. Eliyahu M. Goldratt that emphasizes identifying and addressing the most significant limiting factor (the constraint) that stands in the way of achieving a goal. It provides a structured methodology for improving organizational performance by focusing on systematically managing constraints. Common applications include optimizing production processes, supply chain management, project management, and decision-making to maximize throughput and profitability.