Theory of Constraints | Glossary

Definition :

Theory of Constraints is an organizational modification technique that’s focussed on profit improvement. the main concept of TOC is that each organization should have a minimum of one constraint. A constraint is any factor that limits the organization from getting additional of whatever it strives for, that is usually profit. The Goal focuses on constraints as bottleneck processes in a job-shop manufacturing organization. However, several non-manufacturing constraints exist, like market demand, or a sales department’s ability to translate market demand into orders.

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Further Reading:

Large Scale-Scrum by Craig Larman and Bas Vodde.

 

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