An overview of TOC – scope and limitation

The Theory of Constraints (TOC) is a systems approach based on the assumption that every organization has at least one factor that inhibits the organization’s ability to meet its objectives. The normal objective is to maximize profit. Hence, TOC emphasizes the maximization of profit by assuring that the factor that limits production is used most efficiently. This theory was first described by E. M. Goldratt, and it has been used at three different levels: Production Management (To solve problems of bottlenecks), Scheduling, and Inventory Reduction.
System constraint; Throughput, Inertia; Weakest link; Subordination

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