In the 1980s, Goldratt and Cox (1992) presented Theory of Constraints as a methodology for managing production planning and scheduling. The Theory of Constraints is based on the principle that the goal of any economic enterprise is to make money, now and in the future, and that a system’s constraints determine its capacity to make money.
Goldratt prescribed a five-step focusing process to enable a process of ongoing improvement:
- identify the system’s constraint(s),
- decide how to exploit the system’s constraint(s),
- subordinate everything else to the decision in step 2,
- elevate the system’s constraint(s),
- return to step 1 if the system’s constraints were