Organizations are complex systems, whose performance are dictated by their Constraints

We Elevate Performance with Theory of Constraints

What is our basic instinct when we think of a Constraint? To eliminate it. But as soon as we remove one, immediately a new constraint will appear elsewhere, so we must learn how to live with and get the best of them.

Theory of Constraints - abbreviated as TOC - is a Scientific Management Theory focused on improving organizations' performance by leveraging their constraints. Starting from an intuitive, simple and coherent algorithm, TOC has developed many tools to optimize any business process:

Manufacturing Planning and Control to synchronize flow, reducing lead times and WIP, simplifying shop-floor control
Inventory Distribution, to adopt pull principles for the replenishment of warehouses and POS, to improve availability and sales while reducing logistic costs
Project Management, to achieve better planning and control of project activities and increase due dates and budget performance
Any other process characterized by interdependencies of activities between resources

Organizations are Systems

Systems are limited by constraints

Constraints as leverage points

TOC

How to

exploit them?

Solutions

Beyond Processes

TOC goes beyond processes. It has in fact developed several tools and models, applicable outside of shop floor.

A new perspective to improve Decision-Making and Performance Management processes
An effective framework for Strategic Planning, establishing strong links between strategic variables and the tactics to execute them.
Powerful levers for Sales & Marketing to define competitive Value Propositions and Pricing Strategies

Feedback from Managers

Luca Zigiotti - CFO

Theory of Constraints has simply changed my life, both personally and professionally, giving me the right key to understand the corporate world [...] Because TOC cleanses our minds and focuses people on a single and core question: why aren't we making as much money as we could?

And if we realize that TOC demonstrates that what we call "faults" are very often just illogical behaviors that are caused by wrong measures, then the sense of liberation is truly full.

Every time I've applied TOC principles in my professional life, the results have been extraordinary.

TOC Benchmark

Average performance documented by a University research titled "Analysis and Discussion of Successful TOC Applications" conducted by S.J. Balderstone and V. Mabin, surveying 81 companies - from large corporations to local SMEs.