Have you heard of the Theory of Constraints?

Hello human

💡Have you heard of the Theory of Constraints?

This theory was developed by Eliyahu M. Goldratt in the 1980s and is based on the idea that any chain of activities that produces a result is constrained by at least one factor.

This factor limits how much the system can produce and is the “bottleneck” in the system that needs to be managed, improved, or eliminated.

📚 For example:

Imagine a retail business with three steps: receiving inventory, stocking shelves, and customer checkout.

The stocking shelves step is the bottleneck because it takes the longest to complete and limits how quickly customers can be served.

If the stocking shelves step is improved so that it can be completed more quickly, the entire system can be optimized to serve customers more quickly.

The Theory of Constraints can be applied to any business situation to identify and manage the limiting factor in a system.

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