A resource with capacity less or equal to demand placed on that resource
Dictates the maximum throughput of the entire system or process
Bottleneck
The bottleneck with the least capacity in the entire system –aka the weakest link
A limiting factor or an obstacle to the organization achieving its goal
Constraint
*Manage the organization by managing constraints
*Maximize throughput by efficiently managing bottlenecks
*Singular focus on the constraint until it is no longer a constraint
Theory of Constraints (TOC)
The Five Focusing Steps
1.) Identify
2.) Exploit
3.) Subordinate
4.) Elevate
5.) Repeat with the next constraint