What is the Theory of Constraints?
#bottleneck #theoryofconstraints #constraints #toc
In this video, we're going to learn about the Theory of Constraints and how it can help us overcome business bottlenecks.
The Theory of Constraints (TOC) is a management philosophy that focuses on identifying and removing constraints or bottlenecks that limit an organization's ability to achieve its goals. The theory was first introduced by Eliyahu M. Goldratt in his book "The Goal."
According to TOC, every system, whether it be a manufacturing process, supply chain, or service delivery process, has at least one constraint that limits its performance. Identifying and removing these constraints is key to improving overall system performance.
The TOC methodology involves several steps, including:
Identifying the system's constraints: This involves identifying the factors that limit the system's performance, such as a bottleneck in a production line or a capacity constraint in a supply chain.
Exploiting the system's constraints: This involves maximizing the utilization of the system's constraints to improve overall system performance.
Subordinating everything else to the system's constraints: This involves aligning all other activities in the system to support the performance of the constraints.
Elevating the system's constraints: This involves increasing the capacity of the constraints to further improve system performance.
Repeating the process: This involves continuously identifying and addressing constraints to maintain and improve system performance over time.
The goal of the Theory of Constraints is to improve overall system performance by removing constraints and optimizing the flow of work through the system. By focusing on the system's constraints and aligning all activities to support their performance, organizations can improve efficiency, reduce costs, and increase profitability.
The Theory of Constraints is a powerful tool that can help us solve challenging business problems. By understanding how it works, we can find solutions to any bottlenecks that might be preventing us from reaching our goals. In this video, we're going to learn how to use the Theory of Constraints to overcome business bottlenecks!
00:00 Intro
00:11 – Agenda
00:24 – What is a Constraint?
02:36 – What is a Bottleneck?
03:19 – What is a Process Bottleneck?
03:37 – Demonstration
05:14 – Different types of bottlenecks
10:16 – Theory of Constraints
13:32 – Key Takeaways
Connect with me on Social Media
https://www.derrickhaywood.com/
/ drdhaywood
/ drdhaywood
Watch video What is the Theory of Constraints? online without registration, duration hours minute second in high quality. This video was added by user Dr. Haywood 19 March 2023, don't forget to share it with your friends and acquaintances, it has been viewed on our site 26,16 once and liked it 38 people.