The world can work better

How does a physician change an enterprise? By creating a theory of constraints!

Theory of Constrains (TOC) was born in the 70s of the last century, when due to family reasons Eliyahu M. Goldratt, a physicist, had to help his brother in running his company. The confrontation of the systematization-oriented mindset of a physicist with the business reality of production led Goldratt to the formulation of following principles:

1. People are good.

2. Each conflict can be resolved.

3. Every situation – no matter how complex it appears initially – is extremely simple.

4. Each process can be significantly improved.

5. Everyone can live a full life.

6. There is always a win-win solution.

These principles constitute an ontological base of actions aimed at identifying the constraint inherent in each process. What is the constraint? The weakest link in the chain of relations: what slows down and limits constitutes – in terms of fluid mechanics – a „bottleneck.” But at the same time strengthening this element means achieving better results by the whole system. Indication of the limitation is therefore the beginning of the Process of On-Going Improvement, POOGI, consisting of 5 focusing steps:

1. Identify the constraint.

2. Exploit the constraint.

3. Subordinate the entire system to the constraint.

4. Elevate (expand) the constraint.

5. Return to step 1.

Goldratt, and later some of his colleagues, described their thoughts not in textbooks but in business novels. They presented the practical application of TOC in various fields: production, marketing, sales, project management, finance and distribution. The pages of these books present Logical Thinking Tools (LTT) useful for analyzing processes and identifying conflicts, i.e. situations in which it is necessary to take actions that seem contradictory to each other. LTT help build a picture of cause-and-effect relationships and use this knowledge to redesign systems to operate as part of a new, more efficient, more functional process.

What is the constraint? The weakest link in the chain of relations: what slows down and limits constitutes – in terms of fluid mechanics – a „bottleneck.” But at the same time strengthening this element means achieving better results by the whole system

In addition to being a tool for understanding reality, the theory of constraints is the starting point for practical consultative and advisory activities within organizations dealing with the development and popularization of this way of thinking – especially the Goldratt Institute and TOCICO (Theory of Constraints International Certification Organization) as well as many local consulting and training companies using the already developed and still expanding theoretical achievements and practical experience of centers that analyze the limits that human activities undergo as part of the processes of industrial production of goods and services. The aim of these activities is – to use the theory of complexity concept – to overcome the limitations occurring in complex systems.