theory-of-constraints
Installation
SKILL.md
Theory of Constraints
Overview
Theory of Constraints (TOC) — Eliyahu Goldratt, 1984: throughput of any multi-step system is determined by its single bottleneck. Improving any other step produces no system-level gain. The Five Focusing Steps (Identify → Exploit → Subordinate → Elevate → Repeat) are the operational discipline.
Composes with pareto-principle (TOC = Pareto applied to throughput), feedback-loops, first-principles, and mvp (MVP design = TOC applied to validated learning).
When to Use
- System is producing less than desired throughput; "everyone is working hard" but results don't match effort
- Management improvement initiative or capacity investment is being planned
- Backlog or inventory accumulates at a specific step; local improvements don't translate system-wide
- Someone says "bottleneck," "throughput," "Goldratt," or "Theory of Constraints"
- Analyzing an AI capex / chip-supply-chain question — where the real limit is (e.g. GPU design vs. advanced packaging, HBM, or grid power), whether the "AI bubble" reflects a design race or a hidden physical bottleneck
Not when: single-step system; purely demand-side constraint; problem is strategic/psychological, not operational.