The Goal Institute is an applied research and management consulting
company specializing in rapid improvement of the bottom line of organizations
through the application of Theory of Constraints (TOC) with Lean and other management disciplines.
A constraint is anything that prevents the system from achieving more of its goal. There are many ways that constraints can show up, but there are not tens or hundreds of constraints. There is at least one and at most a few in any given system. These constraints are the leverage points from which one can move an entire system.
Constraints can be internal or external to the system. An internal constraint is in evidence when the market demands more from the system than it can deliver. An external constraint exists when the system can produce more than the market will bear.
From setting the strategy to implementing the underlying
tactics required to support it, The Goal Institute
takes an organization through the same common sense approach to identifying
and dealing with constraints – whether they are on the shop floor or in the
board room - as demonstrated in the book The Goal by Dr. Eli Goldratt.
"There really is no choice in the matter. Either you manage constraints or they manage you. The constraints will determine the output of the system whether they are acknowledged and managed or not." - Noreen, Smith, and Mackey, The Theory of Constraints and its Implications for Management Accounting (North River Press, 1995)