>[!abstract] >The Theory of Constraints (TOC) is a management philosophy that posits any complex system's performance is limited by its most critical bottleneck, or constraint, and that sustainable improvement can only be achieved by addressing this limiting factor. Developed by Eliyahu Goldratt, TOC emphasizes a continuous improvement cycle: identify the constraint, exploit it (maximize its use without additional investment), subordinate other processes to its needs, elevate it through targeted investment if necessary, and repeat the process as new constraints emerge. By focusing on the narrowest point of throughput rather than optimizing all components simultaneously, TOC seeks to align organizational efforts with maximum system-wide performance. >[!related] >- **North** (upstream): [[Systems thinking]] >- **West** (similar): [[Lean manufacturing]] >- **East** (different): [[Local optimization]] >- **South** (downstream): [[Five focusing steps]] (identify → exploit → subordinate → elevate → repeat)