Chapter 2

“Theory of Constraints”

“If you want “real” performance you reach it by many, many little improvements everywhere. This is one philosophy. There is another one…the silver bullet”
Dr Eli Goldratt1

The “Theory of Constraints” is put forward as that silver bullet: the identification and elevation of the biggest constraint a company has. In doing so, it purports to point out why many organisations fail to achieve the expected results through more incremental quality or continuous improvement processes. Whilst elements of the Theory may complement Cost Accounting, Total Quality Management, Activity Based Costing or Just In Time processes, it is very much based on the belief that if you identify the key issue, the seemingly impossible becomes possible:

 Read more….