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Theory of constraints
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===The five focusing steps=== TOC is based on the premise that the rate of [[goal]] achievement by a [[goal-oriented]] system (i.e., the system's [[Throughput (business)|throughput]]) is limited by at least one [[Theory of constraints#Constraints|constraint]]. The argument by [[reductio ad absurdum]] is as follows: If there was nothing preventing a system from achieving higher throughput (i.e., more goal units in a unit of time), its throughput would be infinite β which is impossible in a real-life system. Only by increasing flow through the constraint can overall throughput be increased.<ref name=goal/> Assuming the goal of a system has been articulated and its measurements defined, the steps are: # ''Identify'' the system's constraint(s). # Decide how to ''exploit'' the system's constraint(s). # ''Subordinate'' everything else to the above decision. # ''Elevate'' the system's constraint(s). # ''Warning!'' If in the previous steps a [[Theory of constraints#Breaking a constraint|constraint has been broken]], go back to step 1, but do not allow [[inertia]] to cause a system's constraint.<ref name=goldratt2004>Eliyahu M. Goldratt. 2004. _The Goal: A Process of Ongoing Improvement, {{ISBN|978-0-88427-178-9}}.</ref> The goal of a commercial organization is: "Make more money now and in the future",<ref>Theory of Constraints Handbook, {{ISBN|978-0-07-166554-4}}, p. 8</ref> and its measurements are given by [[throughput accounting]] as: throughput, [[inventory]], and [[operating expenses]]. The five focusing steps aim to ensure ongoing improvement efforts are centered on the organization's constraint(s). In the TOC literature, this is referred to as the ''[[Continual improvement process|process of ongoing improvement]]'' (POOGI). These focusing steps are the key steps to developing the specific [[#Applications|applications]] mentioned below.
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