# Theory of Constraints (TOC) - **Introduction to TOC** - Definition - Origin - Purpose - **Key Concepts** - Constraints - Throughput - Inventory - Operating Expense - **Five Focusing Steps** 1. Identify the constraint 2. Exploit the constraint 3. Subordinate other processes to the constraint 4. Elevate the constraint 5. Repeat the process - **Types of Constraints** - Physical constraints - Policy constraints - Market constraints - Management constraints - **TOC Tools and Techniques** - Drum-Buffer-Rope - Critical Chain Project Management - Buffer Management - **Benefits of TOC** - Increased throughput - Reduced lead times - Improved profitability - **Criticism of TOC** - Overemphasis on constraints - Lack of focus on other aspects of operations - **Case Studies** - Toyota Production System - Goldratt's The Goal - **Conclusion** - Importance of TOC in operations management # References - Goldratt, Eliyahu M. (1984). *The Goal: A Process of Ongoing Improvement*. - Goldratt, Eliyahu M. (1990). *What is this thing called Theory of Constraints and how should it be implemented?*.