REVIEW ON THEORY OF CONSTRAINTS

Theory of constraints (TOC) is a philosophy of management put forth by Eliyahu M. Goldratt, which claims that each system has at least one constraint. Although initially in manufacturing method, TOC has now developed into a theory of Management: a powerful systemic problem structuring and problem solving methodology which can be used to develop solutions with both intuitive power and analytical rigour. This philosophy is applied in many functional areas of companies, ranging from production flow management, marketing, services and project management to being a tool of logical reasoning. The present work aims at highlighting the extant literature with respect to the application of TOC and summaries important findings on the theory and practice of TOC