TOC

TOC (Theory Of Constraints )was introduced by Eliyahu M. Goldratt in his 1984 book titled The Goal, which is considered as a methodology for identifying the most important limiting factor (i.e. constraint) that stands in the way of achieving a goal and then systematically improving that constraint until it is no longer the limiting factor. In manufacturing, the constraint is often referred to as a bottleneck.

In order for organizations to reach their true potential, they need to change, adapt quickly, and renew continuously in today’s rapidly changing, ambiguous and turbulent environment. This agility can be built in manufacturing (having ability to deliver despite having a large backlog) or distribution (being able to make the right product available at right place) or new product development (having a faster pace of development that increases rate of sales) or in the market (being able to sustainably increase sales and market share).

When organizations build these capabilities and can thrive on change, it becomes a source of a decisive competitive advantage.