The Theory of Constraints: A Management Philosophy

Background

The theory of constraints (TOC) is a system-based management philosophy which seeks to understand and identify the core causes that limit a system from achieving higher performance versus its goal (Goldratt, 1988). Although a relatively new approach, applications of TOC concepts and tools have been published widely in academic literature and the popular press. This body of literature has been written to:

• •

  demonstrate the basic concepts of TOC;

• •

  review TOC literature;

• •

  review the historical development of OPT as well as TOC and TP applications;

• •

  define and categorise concepts and terms;

• •

  demonstrate the impact of OPT software on organisational performance;

• •

  compare aspects of TOC with other operations management tools such as material requirement planning (MRP) and Kanban, linear programming, and total quality management;

• •

  compare the TOC performance measures with traditional cost accounting and activity-based cost accounting management;

• •

  develop a TOC-based framework for operations management.