Steps for Theory of Constraints:

The application of TOC involves the given steps.

Identify the System Bottleneck(s)

For the rake example, bottleneck is welder as it is restricting the firm's ability to meet shipping schedule and hence total value-added funds.

Exploit the Bottleneck(s)

Develop schedules that maximize the throughput of bottleneck(s). For the rake example, schedule welder to maximise his utilization whereas meeting shipping commitments to possible extent.

Subordinate All Other Decisions to Step 2

Resources that are non bottleneck must be scheduled to support schedule of the bottleneck and not produce more than what it may handle.

Elevate the Bottleneck(s)    

After scheduling improvements in steps 1-3 have been exhausted and the bottleneck is still a constraint to throughput, management should consider increasing the capacity of the bottleneck. For example, if still welding is a constraint after exhausting schedule improvements, consider increasing in the capacity by adding another shift or another welding machine.

Do Not Let Inertia Set In

Actions taken in steps 3 and 4 shall improve welder throughput and may alter loads on other processes. Consequently, the system constraint(s) can have shifted.