Theory of Constraints (TOC):

Theory of constraints (TOC) has evolved through different works performed by Eli Goldratt. The base of TOC is a combination of cause and effect and thinking procedure.

To understand TOC, Dr. Goldratt has given a easy instance. Corporate can be analogous to a chain. Different links are linked one after another to form a chain. Several divisions, departments, products or rules are analogous to link. The strength of the chain is the strength of its weakest link. The weakest link limits the chain's capability in transmitting a' greater force. Similar is the case for corporate. Every system contains at least one constraint, which prevents the system from achieving very high level of performance. Therefore, TOC emphasizes ought to identify constraints that prevent the system from achieving infinite profits, which is the goal of the corporate.