What is Theory of Constraints (TOC)? - Definition from WhatIs.com

Definition

Theory of Constraints (TOC)

Part of the Business terms glossary:

The Theory of Constraints (TOC) is a philosophy of management and continuous improvement originally developed by Dr. Eliyahu M. Goldratt and introduced in a book called The Goal. The book, a novel, is often used in business classes. The story, which is told in first person narrative, is about a new plant manager who is given ninety days to turn things around and make the plant run successfully or the plant will close. The plant manager finds a mentor who asks questions that guide the manager -- and the reader -- to realize that every complex system has at least one constraint (bottleneck) and it's the constraint that determines the ability of the system to be successful.

Learn more:
This white paper from the Goldratt Institute provides an introduction to the Theory of Constraints and its thinking processes.

This was last updated in March 2011
Posted by: Margaret Rouse

Related Terms

Definitions

  • non-profit organization (NPO)

    - A non-profit organization (NPO) is one which is not driven by profit but by dedication to a given cause that is the target of all income beyond what it takes to run the organization. Non-profit or... (WhatIs.com)

  • holacracy

    - A holacracy is a governance structure characterized by a distribution of power among self-organizing groups, rather than the typical top-down hierarchical corporate culture model. The word comes fr... (WhatIs.com)

  • 70 percent rule for productivity

    - According to the 70 percent rule, which has its roots in athletics, employees are most productive when a majority of their time is spent working at a less intense pace. That way, when work demands ... (WhatIs.com)

Glossaries

  • Business terms

    - Terms related to business, including definitions about project management and words and phrases about human resources, finance and vertical industries.

  • Internet applications

    - This WhatIs.com glossary contains terms related to Internet applications, including definitions about Software as a Service (SaaS) delivery models and words and phrases about web sites, e-commerce ...

Ask a Question About Theory of Constraints (TOC)Powered by ITKnowledgeExchange.com

Get answers from your peers on your most technical challenges

Tech TalkComment

Share
Comments

    Results

    Contribute to the conversation

    All fields are required. Comments will appear at the bottom of the article.