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Theory of Constraints

The Theory of Constraints (TOC) was first described by Dr. Eliyahu M. Goldratt in his novel, The Goal. A constraint is anything in an organization that prevents it from moving toward or achieving its goal: for most commercial organizations the primary goal is "to make money now as well as in the future".   TOC may be applied at three different levels:

Production Management

TOC was initially applied to production scheduling, constraint (bottleneck) management and inventory reduction.

Throughput Analysis

TOC shows that cost-based financial controls are inappropriate for managing production processes, and can promote counter-productive management strategies. The TOC system of Throughput Accounting addresses these issues.

Theory of Constraints Logical Processes

TOC includes a logically complete range of reasoning tools which may be applied to any situation within the business.

Sherpa Consulting will help you to identify the constraints in your business processes, and will teach you how to apply the Theory of Constraints to manage the processes efficiently and effectively. We will show you why the cost accounting systems used to measure your business can adversely affect profitability, and will teach you more effective alternatives.