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The Theory of Constraints

Anything that limits a system from achieving higher performance in pursuit of its goal is a constraint. Any system has very few constraints, but must have at least one constraint. There are five steps applied by the Theory of Constraints in terms of systems. These five steps form a continuous improvement process.

We can additionally approach constraint management as a Process of Change. We perform the process of change by application of a set of logical Thinking Tools.

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bullet1.gif (122 bytes) Step 1. Identify the system’s constraints. Constraints must be prioritized as to their impact on the goal.

bullet1.gif (122 bytes) Step 2. Decide how to exploit the system’s constraints. Get the maximum performance from the system by focusing your efforts to minimize the impacts of the constraint. Squeeze out all you can from what you have.

bullet1.gif (122 bytes) Step 3. Subordinate everything else to the above decision. Insure that non-constraints are focused on supporting the exploitation of the constraints and not working in opposition to them. Do everything to support exploiting the constraint and nothing more.

bullet1.gif (122 bytes) Step 4. Elevate the system’s constraints. Turning a constraint into a non-constraint improves the system and also creates a new constraint. Remember, every system must have at least one constraint so when you eliminate a constraint some other constraint will take its place. Ideally we improve our systems to locate the constraint where we ultimately want it. Never elevate a constraint until you perform steps 2 and 3. You may find that added investment is not needed.

bullet1.gif (122 bytes) Step 5. If in the previous steps a constraint has been successfully elevated to being a non-constraint, then we return to step 1 and identify the systems constraints. Constraint Management is continuous improvement. Remember to not fall victim to inertia which might cause a new constraint. Just because a rule or policy was instituted to help exploit a constraint does not mean that it should not go unchallenged once the constraint has been elevated to a non-constraint.

bullet1.gif (122 bytes) The Process of Change
"Constraint Management is directed toward a global perspective of ongoing process improvement and revolves around a process of change. "
  • First, we must find out "What to Change". We must pinpoint the Core Problems. A core problem is one that when corrected will have a major impact on the enterprise’s performance. This is a technical step.
  • Next, we must determine to "What to Change to". We construct simple practical solutions. This also is a technical step.
  • Finally, we must determine "How to Cause the Change". These are the prerequisites for making the change and the actions for making the change transition occur. This step is partially technical but mostly psychological.
We perform the process of change by application of a set of logical Thinking Tools.
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