Goldratt's "Theory of Constraints" Thinking Processes:

A Systems Methodology linking Soft with Hard

Victoria Mabin

School of Business and Public Management

Victoria University of Wellington

PO Box 600

Wellington

Tel +64 4 463 5140

Fax +64 4 463 5253

Email vicky.mabin@vuw.ac.nz

Abstract

In its brief 20-year history, Goldratt's Theory of Constraints (TOC) methodology has

evolved into a systems methodology that links elements of both soft and hard systems

methods. The major component of TOC that underpins all the other parts of the

methodology is the TOC Thinking Processes, a suite of logic trees that provide a

roadmap for change. They guide the user through the decision making process of

problem structuring, problem identification, solution building, identification of

barriers to be overcome, and implementation of the solution. Tree-builders make

recourse to a set of logic rules, which provide the analytical rigour usually associated

with hard scientific approaches. This is combined with the ability to capture softer

information and complexity provided by soft OR approaches. This paper briefly

outlines the TOC methodology, and discusses the similarities and differences between

TOC and other systems methods, particularly the Rational Model of decision-making.

Introduction:

Since its roots 20 years ago as a manufacturing scheduling method, the Theory of

Constraints (TOC) methodology has now developed into a systems methodology that

links elements of both soft and hard systems methods. The development of Theory of

Constraints is credited in the main to Dr Eliyahu M. Goldratt, an Israeli physicist who

has turned his attention to the business world, through a large number of books,

seminars and other media (see for example, Goldratt and Cox, 1986/1992, Goldratt

1990a, 1990b, 1994, 1997). There are several works which provide reviews of TOC's
history and development (McMullen, 1998), its major components (Cox and Spencer,

1998; Dettmer, 1997), applications (Noreen et al, 1995; Kendall, 1998), and published

literature (Mabin and Balderstone, 1999). The major component of TOC that

underpins all the other parts of the methodology is the TOC Thinking Processes.

These are a suite of logic trees that provide a roadmap for change, by addressing the

three basic questions of What to change, What to change to, and How to cause the

change. They guide the user through the decision making process of problem

structuring, problem identification, solution building, identification of barriers to be

overcome, and implementation of the solution. The trees make recourse to a set of

logic rules, called the Categories of Legitimate Reservation (CLR), which set out to

check for and correct common flaws in our logic, and provide the analytical rigour