Theory of Constraints: Identifying and Eliminating Bottlenecks

The Theory of Constraints (TOC), a methodology pioneered by Eliyahu M. Goldratt, emphasizes that at any given time, a system's ability to achieve its goals is limited by one or a few constraints. In the context of product development, these constraints could be anything from a bottleneck in the supply chain to a slow design review process or even limited access to critical equipment. Identifying these bottlenecks is the first crucial step in accelerating our time to market.

Once identified, the TOC methodology provides a structured approach to exploit, subordinate, elevate, and ultimately, break the constraint. Exploiting the constraint means maximizing the throughput of the bottleneck without major investment. Subordinating involves aligning all other processes to support the bottleneck, ensuring it receives what it needs, when it needs it. Elevating the constraint may require investing in additional resources or process improvements to increase its capacity. Finally, once a constraint is broken, the process repeats, identifying the next limiting factor.