ABSTRACT

The core idea in the Theory of Constraints (TOC) is that every realsystem, such as a profit-making company, must have at least one con-straint. If this were not true, then the system would produce an infinite amount of whatever is strives for; in the case of a constraint in a manufacturing company, it would be infinite profits. Because a constraint is a factor that limits the company from reaping more profits, then a business manager who wants more profit must manage constraints. There really is no choice in the matter. Either you manage the constraints or they manage you. The constraints will determine the throughput of the system whether they are acknowledged and managed or not; therefore, managing the constraints determines the rate of return on the investment a company will experience.