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Theory of Constraints

Also called TOC; drum-buffer-rope

Throughput is set by one binding constraint; improvement anywhere else is illusory.

Goldratt's 1984 argument. The counterintuitive consequence is that improving a non-bottleneck raises inventory and costs without raising throughput, so local efficiency measures actively mislead.

In practice

  • A factory that buys a faster cutting machine finds the paint shop still sets the output, and now has more part-finished stock waiting for it.
  • A team that speeds up the stage before the review queue produces a longer review queue, and the local efficiency metric improves.
Further reading
Wikipedia
Subject
Design & Systems
Essay
Why systems behave against intuition

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