principle of Toc 吕荣

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Lecture 4
Question 5:
Explain the principle of TOC
TOC is the abbreviation of Theory Of Constraints, in which the main
constraint is called bottleneck.
The theory mainly tell us that every system, no matter how complex it is, has
constraints which limits the output of entire operation. We can simple change
the key leverage point to improve the whole system rather than change the
other point which may influence the performance of the whole system.
For example, as we all known, the strength of a chain is limited by the
weakest link. If we improve the other link but not the weakest link, the
improvement of the chain is zero, since the weakest chain breaks at the first
and at the same strength. But if we improve the strength of the weakest link,
the performance of the system will be significant. That’s what Goldratt's
Principle telling about.
So the main process in the theory is to find the constraint points. Here is the
five steps to get it.
1.Identify the constraint
2.Decide how to exploit the constraint,or maximize the capacity of the weak
link.
3.Make other links in the chain support the decision to exploit the constraint.
4.Improve the (productive) capacity of the constraint.
5.Go back to Step 1 and begin again –Continuous improvement.
After several circles of constraint improvement, the system will get en
optimal performance and get the desired output.