# Theory of Constraints

Operations · `Theory of Constraints` · verification: source checked

Theory of Constraints is a management philosophy and set of tools for organizational change developed by Eliyahu Goldratt and popularized in the 1984 book The Goal by Goldratt and Jeff Cox. It concentrates on improving profits by managing constraints, which are factors that prevent a company from achieving its goals. Its primary focus is removing or managing constraints to improve throughput.

## Specification

| Property | Value |
|---|---|
| Kind | methodology |
| Origin | Israeli physicist Eliyahu Goldratt; 1984 book The Goal by Goldratt and Cox |

## Study notes

- Developed by Israeli physicist Dr. Eliyahu Goldratt.
- Popularized in the 1984 book The Goal by Goldratt and Jeff Cox.
- TOC focuses on improving profits by managing constraints, factors that prevent a company from achieving its goals.
- TOC focuses on removing or managing constraints to improve throughput; lean focuses on identifying and removing waste to improve the flow of value.
- Both lean and TOC emphasize improving the whole system rather than individual parts.

## Sources

1. [Theory of Constraints - Lean Enterprise Institute](https://www.lean.org/lexicon-terms/theory-of-constraints/) (accessed 2026-10-25)

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