Theory of Constraint
One of the tool for improving Operational Efficiency is Theory of Constraint
Identify the current constraint (the single part of the process that limits the rate at which the goal is achieved).
Exploit Make quick improvements to the throughput of the constraint using existing resources (i.e. make the most of what you have).
Subordinate Review all other activities in the process to ensure that they are aligned with and truly support the needs of the constraint
Elevate If the constraint still exists (i.e. it has not moved), consider what further actions can be taken to eliminate it from being the constraint. Normally, actions are continued at this step until the constraint has been “broken” (until it has moved somewhere else). In some cases, capital investment may be required.
Repeat The Five Focusing Steps are a continuous improvement cycle. Therefore, once a constraint is resolved the next constraint should immediately be addressed. This step is a reminder to never become complacent – aggressively improve the current constraint…and then immediately move on to the next constraint.
Identify the current constraint (the single part of the process that limits the rate at which the goal is achieved).
Exploit Make quick improvements to the throughput of the constraint using existing resources (i.e. make the most of what you have).
Subordinate Review all other activities in the process to ensure that they are aligned with and truly support the needs of the constraint
Elevate If the constraint still exists (i.e. it has not moved), consider what further actions can be taken to eliminate it from being the constraint. Normally, actions are continued at this step until the constraint has been “broken” (until it has moved somewhere else). In some cases, capital investment may be required.
Repeat The Five Focusing Steps are a continuous improvement cycle. Therefore, once a constraint is resolved the next constraint should immediately be addressed. This step is a reminder to never become complacent – aggressively improve the current constraint…and then immediately move on to the next constraint.
