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Theory of Constraints (TOC)

Problem solvingProcess improvement

Reference model

Theory of Constraints StepsA sequence of 5 steps, read from the first to the last: 1, Identify the Constraint; 2, Exploit the Constraint; 3, Subordinate Everything Else; 4, Elevate the Constraint; 5, Repeat the Process.Identify the ConstraintFind the bottleneck thatlimits performance.1Exploit the ConstraintMake quick improvements tomaximize throughput.2Subordinate EverythingElseAlign all other processes tosupport the constraint.3Elevate the ConstraintInvest in improvements toincrease capacity.4Repeat the ProcessOnce resolved, identify thenext constraint.5

Identify and manage constraints to improve overall system performance.

About this model

A management philosophy aimed at improving organizational performance by focusing on the constraints that limit success.

Originator not stated.

How to read it

  • Identify the constraint in the process first.
  • Focus on improving the constraint to enhance overall throughput.

What this does

Identifies the most significant limiting factor (constraint) in a process and systematically improves it to enhance overall performance.

When to use it

Use it when a process is underperforming and you need to find the bottleneck that is limiting throughput.

Not when: Do not use it when the process is functioning well or when multiple constraints are not clearly identifiable.

What happens next

Consider using the Five Focusing Steps to implement improvements based on the identified constraint.

Golden thread

Builds on ←

  • Process mapping
  • Performance metrics

Feeds into →

  • Improvement plan

Use this tool, free

Sign in to open the worksheet. Your work saves as you type, the AI can draft the parts you have not filled in, and you finish with an analysis and a 30/60/90-day action plan.

Drafted with AI and reviewed by Eccellere on 04/11/2026. Guidance, not advice: apply your own judgement.