Theory of Constraints 101

A series of 5-minute posts on applying principles of flow to knowledge work Below you can find all the posts published so far, and a quick 3-point summary of each. 101: Introduction to the Series The basic premise of the Theory of Constraints as outlined in The Goal by Eliyahu Goldratt; the definition of a bottleneck

The Theory of Constraints is deceptively simple. It starts out proposing a series of “obvious” statements. Common sense really. And then before you know it, you find yourself questioning the fundamental tenets of modern business and society. Eliyahu Goldratt laid out the theory in his 1984 best-selling book The Goal. It was an unusual book

A series of 5-minute posts on applying principles of flow to knowledge work In the previous post, I argued that many people unknowingly subscribe to a defunct management philosophy: that you can improve the performance of a company as a whole by individually improving the performance of its parts. These isolated improvements are known as

A series of 5-minute posts on applying principles of flow to knowledge work In the previous post, I described how many companies’ embrace of local optima leads to overwork and burnout for employees, and reduced throughput and profitability for the bottom line. Before we look at what TOC proposes as a solution, we have to

A series of 5-minute posts on applying principles of flow to knowledge work In the previous post, I told the story of how Eliyahu Goldratt proposed time as a new mechanism for limiting work-in-process, using a new method he designed called Drum-Buffer-Rope (DBR). Let’s examine how DBR proposes to fix the situation we left at

A series of 5-minute posts on applying principles of flow to knowledge work In the previous post, I explained Drum-Buffer-Rope (DBR), the original application of TOC to production environments like manufacturing. We’re now ready to take a closer look at a real-world example that brings together all the ideas we’ve covered in the series so

A series of 5-minute posts on applying principles of flow to knowledge work In the previous post, I told the story of a software engineering team at Microsoft who used the Theory of Constraints to produce dramatic improvements in productivity. But I hope something bothered you: how exactly did they know which changes to make?

A series of 5-minute posts on applying principles of flow to knowledge work In the previous post, I introduced the Five Focusing Steps, used to improve any system of value creation: Identify the constraint Optimize the constraint Subordinate the non-constraints Elevate the constraint Return to step 1 But what does it actually look like to

A series of 5-minute posts on applying principles of flow to knowledge work In the previous post, I described how to go about identifying the constraint in a knowledge work organization. The next step, #2 in the Five Focusing Steps, is to optimize that constraint: Identify the constraint Optimize the constraint Subordinate the non-constraints Elevate