TOC- Theory of Constraints is a methodology developed by Eliyahu Goldratt. It is a methodology for identifying the constraint, most important limiting factor that stands in the way of achieving a goal and then systematically improving that constraint until it is no longer the limiting factor. Constraint is also referred as bottleneck. Bottleneck management is widely used terminology in manufacturing, services, construction, hospitals, retail..

1. Theory of Constraints
Theory of Constraints
TOC- Theory of Constraints is a methodology developed by Eliyahu Goldratt. It is a
methodology for identifying the constraint, most important limiting factor that stands in the way
of achieving a goal and then systematically improving that constraint until it is no longer the
limiting factor. Constraint is also referred as bottleneck. Bottleneck management is widely used
terminology in manufacturing, services, construction, hospitals, retail..

2. Some of the benefits that TOC can bring to
organization are:
 Increase in capacity through bottleneck management
 Reduction of inventory
 Reduction in Manufacturing Lead time
 Effective utilization of resources
 Improvement in On time supplies
 Reduction of defects
 Increased profit
 Fast improvement
TOC is used as one of the methodologies by Seven Steps along with Lean, TQM, Six Sigma ,
TPM etc., in facilitating Journey of Excellence as organization wide initiative.
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