Essay: The steps in the Theory of Constraints

Essay: The steps in the Theory of Constraints
08/06/2011 Comments Off on Essay: The steps in the Theory of Constraints Academic Papers on Business Studies,Sample Academic Papers admin

Sample Essay

The TOC involves a series of five steps which focus on relieving the constraining factor so that overall productivity and profitability benefit. The five steps, according to the Goldratt institute website[1] are as follows:

  1. Identification of the bottleneck operations. This step entails finding out through observation or study what the restraining factors are that limit the productivity and profitability of a business.
  2. Making decision about how to exploit or ease the constraint. A single constraint – which might be a small part of the production process – can adversely affect the entire production process. In this step, the idea is to extract as much as possible from the constraint without incurring additional costs in purchasing more units of the constraint.


[1] Breen, A.M, Burton-Houle, T., Aron, D.C.(2002) “Applying the Theory of Constraints in Health Care: Part 1 – The Philosophy” Retrieved March 19, 2009 from

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