Theory of Constraints is a performance improvement technology that has been implemented in 1000’s of organizations world-wide since 1978.

TOC is characterized by “Focus and Leverage” — a combination that typically provides fast, direct and often massive performance improvements that consistently translate into bottom-line results.

TOC is applicable to any organization. However, Steve Jackson, the Principal of Jackson Constraints Group Inc is a specialist in applying TOC to small- to mid-size manufacturing organizations that fall into TOC’s “sweet spot.”

Typical outcomes in these sweet-spot businesses that contribute to an order-of-magnitude increase in profitability include:

• On-time delivery (make to order or ship from stock) increased to 98% and better.
• Lead times reduced 70% to 90%.
• WIP inventory reduced 50% to 90%.
• Finished Goods inventories — if applicable — reduced 25% to 75%.
• Operating expenses significantly reduced (scrap, overtime, expediting).
• A scheduling approach that means expediting chaos is significantly reduced.
• Production increased 20%, often 30%, occasionally 40% from essentially the same people and equipment.
• Sales & Marketing strategies and tactics to capitalize on the increased Productivity.

The implementation approach is characterized by gaining an extensive broad & deep buy-in to the TOC principles that provides a foundation for a customized detailed implementation plan created by the company’s resources with consulting & coaching assistance from Steve.

Realistically, JCG’s approach recognizes that resources in SMEs are frequently stretched to capacity (and beyond) even before the implementation project is added to the workload. So the implementation approach reflects a high degree of “done for you” and “done with you” as needed.

Theory of Constraints is also characterized by inclusivity; a TOC implementation can be even more effective when Lean and Six Sigma technologies are applied to take advantage of the TOC’s Focus & Leverage insights. And ERP software becomes far more valuable when it supports the TOC implementation.

Steve Jackson worked with TOC founder Eli Goldratt for 6 years commencing in 1988 then again, at Dr. Goldratt’s request, almost a decade later. He was one of the team who worked with Dr. Goldratt to develop, document, and teach the “TOC Thinking Processes;” and worked with Dr. Goldratt’s organization as TOC expanded from a Production solution to encompass Throughput Accounting, Distribution and Supply Chain Management, Critical Chain Project Management, Sales, Marketing, and “Strategy & Tactics” planning and deployment.