80/20 Principle and the Theory of Constraints

This is 12Faces 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 liberating aspect of your production line.

Theory of Constraints

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.

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 may have the maximum impact on your productivity.

Linked here from Skills Module 80/20:
Go to the TOC Skills Module introduction: Theory of Constraints (TOC) for more on how to identify the constraint and take advantage of it.

Linked here from Skills Module Theory of Constraints:
Go to the 80/20 Skills Module introduction: SM2.0 80/20 Sales Growth; Double Sales, Triple Profits