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The theory of constraints (TOC) is a management paradigm that views any manageable system as being limited in achieving more of its goals by a very small number of constraints. There is always at least one constraint, and TOC uses a focusing process to identify the constraint and restructure the rest of the organization around it.
The five focusing steps of TOC is an ideal approach to identifying the bottleneck and the correct procedure to reduce the impact keeping in mind the 'goal.' The five focusing steps are: Identify the Constraint; Exploit the Constraint; Subordinate the Constraint; Elevate the Constraint; Repeat the Process
The primary thinking processes, as codified by Goldratt and others: Current reality tree (CRT, similar to the current state map used by many organizations) — evaluates the network of cause-effect relations between the undesirable effects (UDE's, also known as gap elements) and helps to pinpoint the root cause(s) of most of the undesirable effects.
Focused improvement in the theory of constraints is an ensemble of activities aimed at elevating the performance of any system, especially a business system, with respect to its goal by eliminating its constraints one by one and by not working on non-constraints.
One of the thinking processes in the theory of constraints, a current reality tree (CRT) is a tool to analyze many systems or organizational problems at once. By identifying root causes common to most or all of the problems, a CRT can greatly aid focused improvement of the system.
The utility of ToC is in being able to simplify the process of improving the performance of extremely complex systems by narrowing management's focus to the factors that actually limit throughput. If it's acceptable to perceive more than one constraint at any given time, then it's acceptable to perceive dozens of constraints at any given time.
Throughput Accounting is a management accounting technique used as the performance measure in the Theory of Constraints (TOC). [4] It is the business intelligence used for maximizing profits, however, unlike cost accounting that primarily focuses on 'cutting costs' and reducing expenses to make a profit, Throughput Accounting primarily focuses ...
The evaporating cloud is one of the six thinking processes in the theory of constraints (TOC). The evaporating cloud (EC) – also referred to in the literature as "the cloud", or as a "conflict resolution diagram" [ 1 ] – is a logical diagram representing a problem that has no obvious satisfactory solution.