What Does Theory of Constraints (TOC) Mean?The theory of constraints (TOC) refers to a general philosophy put together by Dr. Eliyahu M. Goldratt that is used by a large number of organizations to improve their operations. TOC includes management/decision-making and problem-solving tools known as the Thinking Processes (TP). TOC asserts that organizations, processes, and so on are sensitive and vulnerable because the most fragile part or individual can often break or harm them, negatively impacting their outcomes. Eliyahu M. Goldratt introduced the theory of constraints as part of his 1984 book named "The Goal".
The focusing steps in the theory of constraints are mainly used in project management, manufacturing, etc. TOC applications are also used in the sales, marketing and finance fields.