Addressing Bottlenecks with Theory of Constraints
Blog: Decision Management Community
This presentation describes how to improve organizational performance using The Theory of Constraints created by late Dr. Eli Goldratt and explained in his book, The Goal. The thought behind Theory of Constraints is that in every organizational system, there is one constraint that limits the flow of value. Similar to the weakest link in a chain, improvements to the rest of the chain don’t make it stronger. It explains why local optimization doesn’t help and that we need to use systems thinking.