SM2.3 80/20 and the Theory of Constraints (TOC)

This is 12Faces’s equivalent of Godzilla meets the Hulk!

In our language it is the mixing of the 80/20 Rule, which promises up to 16x growth and the Theory of Constraints (TOC) approach, which describes the most impactful aspect of any production line or system.

To progress as fast as possible, combine these two techniques

Theory of Constraints (TOC)

The Theory of Constraints (TOC) points out that there is generally only one part of your production cycle that limits the throughput of your production cycle.  Anything upstream or downstream of that “choke point”, or “Constraint”, is able to produce more than can get through the Constraint.

Therefore, the main place to focus is the constraint.

For more go to the introductory article for TOC: SM5.0 Theory of Constraints (TOC) Find and Remove Bottleneck

80/20 Meets TOC

It is easy to see that the very powerful 80/20 Rule and TOC are closely related.

20% of a production line of any type, Retail/Service/Manufacturing, might be the  “Constraint”. That is the centrepiece of TOC.

Both theories argue that liberating the Constraint will have the maximum impact on your productivity. Learn both theories to maximise the optimisation of your business.

For more go to the introductory article for 80/20: SM2.0 80/20 Sales Growth; Double Sales, Triple Profits