Theory of Constraints (TOC)
Definition - What does Theory of Constraints (TOC) mean?
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.
Techopedia explains Theory of Constraints (TOC)
- What to improve?
- How much improvement is required?
- How to produce the improvement?
There are also five focusing steps put forward by TOC to achieve the goal:
- Recognize the system’s constraints
- Make a decision on how to make use of the system’s constraints
- Subordinate everything else to the previously mentioned decision
- Elevate the system’s constraints; that is, make other significant modifications required to break the constraints
- If the constraints have been broken in the prior steps, return to step one
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