How can you apply the theory of constraints to your process design?

1 What is the theory of constraints?

The theory of constraints is a management philosophy that was developed by Dr. Eliyahu Goldratt in the 1980s. It is based on the idea that every process has at least one constraint, or bottleneck, that prevents it from achieving its full potential. A constraint is anything that limits the output or throughput of a process, such as a resource, a policy, a skill, a demand, or a dependency. The TOC states that by identifying and managing the constraint, you can improve the overall performance of the process, and that any improvement that does not address the constraint is wasted effort.

3 How to exploit the constraint?

The second step to apply the TOC to your process design is to exploit the constraint. This means to maximize the output or throughput of the constraint, without increasing its capacity or resources. You can do this by eliminating or reducing any waste, variation, or inefficiency that affects the constraint, such as idle time, rework, overproduction, or defects. You can also prioritize and schedule the work that goes through the constraint, ensuring that it only processes the most valuable or urgent tasks. You can also align the rest of the process to the pace of the constraint, avoiding overloading or starving it.

4 How to elevate the constraint?

The third step to apply the TOC to your process design is to elevate the constraint. This means to increase the capacity or resources of the constraint, if possible and necessary. You can do this by adding more equipment, staff, space, or budget to the constraint, or by outsourcing or subcontracting some of its work. You can also invest in training, coaching, or technology to enhance the skills or productivity of the constraint. You can also modify or redesign the process to simplify, streamline, or automate some of the activities or interactions of the constraint.

5 How to repeat the process?

The fourth and final step to apply the TOC to your process design is to repeat the process. This means to monitor and evaluate the impact of your actions on the constraint and the process, and to identify and address any new or emerging constraints that may arise. You can do this by measuring and comparing the key performance indicators (KPIs) of your process, such as throughput, lead time, quality, or customer satisfaction, before and after the changes. You can also collect and analyze feedback from your stakeholders, such as customers, employees, or suppliers, to identify any issues or opportunities for improvement. You can also review and update your process documentation, standards, and policies to reflect the new state of your process.

By applying the TOC to your process design, you can achieve significant improvements in your process performance and results, while saving time, money, and resources. The TOC helps you focus on the root cause of your process problems, and provides you with a systematic and logical approach to solve them. The TOC also encourages you to adopt a continuous improvement mindset, and to challenge and optimize your process on a regular basis.