Business Process Improvement

Theory of Constraints
Theory of Constraints or TOC is an improvement methodology which will focus efforts in your process toward the step which is constraining your system and keeping your from delivering value to your customer. It is a systematic method which has four steps:

1.	Identification of your constraint
2.	exploit the constraint
3.	subordinate everything in the line to that constraint
4.	elevate the constraint so that it can be ‘broken’.

Once the constraint is broken the cycle will start over with the next identified constraint.

TOC is a simple improvement methodology that will improve production Throughput, which is defined as the products or services that have been purchased by the customer.

Inventory, which simply put are the things transformed into Throughput, can be minimized and optimized to improve production effectiveness. By managing Operating Expense (the costs that are spent to turn Inventory into Throughput) a company will ensure that the customers will be served with a quality and timely product or service delivery.