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Theory of Constraints

Theory of Constraints is based on the premise that the rate of achievement is limited by at least one constraining process. Only by increasing flow through the constraint can overall throughput be increased. Assuming the goal of the organization has been established then the steps are:
April 30, 2011

Theory of Constraints is based on the premise that the rate of achievement is limited by at least one constraining process. Only by increasing flow through the constraint can overall throughput be increased.

Assuming the goal of the organization has been established then the steps are:

  1. Identify the constraint (the resource or policy that prevents the organization from obtaining more of the goal)
  2. Decide how to exploit the constraint (get the most capacity out of the constrained process)
  3. Subordinate all other processes to above decision (align the whole system or organization to support the decision made above)
  4. Elevate the constraint (make other major changes needed to break the constraint)
  5. If, as a result of these steps, the constraint has moved, return to Step 1. Don't let inertia become the constraint.

The five focusing steps aim to ensure ongoing improvement efforts are centered around the organization's constraints. This is referred to as the "Process of Ongoing Improvement" (POOGI).

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About the Author

Denis Leonard

Denis Leonard has a degree in construction engineering an M.B.A. and a Ph.D. in quality management. Denis is a Fellow of the American Society for Quality, a Certified Quality Manager, Auditor and Six Sigma Black Belt. He has been an Examiner for the Baldrige National Quality Award Board of Examiners a Judge on the International Team Excellence Competition and a Lead Judge on the National Housing Quality Award. A former Professor of Quality at the University of Wisconsin, he has experience as a quality manager in the homebuilding industry as well as construction engineer, site manager and in training, auditing and consulting with expertise in strategic and operational quality improvement initiatives. His work has achieved national quality, environmental and safety management awards for clients.

Denis is co-author of 'The Executive Guide to Understanding and Implementing the Baldrige Criteria: Improve Revenue and Create Organizational Excellence'.

http://www.BusinessExcellenceConsulting.net

[email protected]

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