Theory of Constraints (TOC) is a management philosophy focused on identifying and eliminating key “bottlenecks” that prevent organizations from achieving their goals. It was created by Dr. Eliyahu M. Goldratt – an Israeli physicist and business innovator. As early as the 1970s, Goldratt developed OPT (Optimized Production Technology) software for finite-capacity production planning. During its implementation, he realized that the main obstacle was not the lack of advanced IT tools, but rather managers’ traditional assumptions (such as cost-based thinking). As a result, he formulated a revolutionary approach: instead of trying to optimize all areas of an organization simultaneously, efforts should be concentrated on the system’s true constraint.
Eli Goldratt and the Theory of Constraints
The breakthrough in popularizing TOC was Goldratt’s book The Goal (1984, published in Poland as Cel. Doskonałość w produkcji). The novel tells the story of a plant manager who saves his factory by focusing on its weakest link. The Goal introduced the foundations of TOC (the Drum–Buffer–Rope method) and the Process Of On-Going Improvement (POOGI). The book became a global bestseller (over 3 million copies sold) and sparked worldwide interest in Goldratt’s methods.
In the following years, Goldratt expanded TOC: in 1994, he published It’s Not Luck (Cel II – To nie przypadek), which presented TOC thinking tools outside manufacturing (e.g., in marketing and sales). In 1997, he released Critical Chain (Łańcuch krytyczny), which showed how TOC could transform project management.
Goldratt earned international renown as a pioneer of modern management. Fortune magazine called him a “business guru” who helped many companies significantly increase their profits. His approach challenged conventional methods – replacing traditional cost accounting with throughput accounting, focused on maximizing profits from sales. He actively promoted TOC worldwide, lecturing and advising companies across many industries (including in Poland). In 2004, the TOCICO association was established, formalizing the global community of practitioners. Eliyahu Goldratt passed away in 2011, but his legacy continues through colleagues and the next generation – most prominently his son, Rami Goldratt.
Applications of the Theory of Constraints in the Automotive Industry
Mazda is one of the most striking examples of using TOC/CCPM in the automotive sector. Between 2007 and 2012, Mazda was in crisis – the company reported losses for four consecutive years and urgently needed a breakthrough product to regain competitiveness.
The challenge was to develop a new generation of Skyactiv engines (high efficiency with lower fuel consumption). Traditional R&D project planning was too slow. Mitsuo Hitomi, Mazda’s head of development, decided to apply Critical Chain Project Management (CCPM). Teams were trained in TOC principles, major delays were identified (engineers’ multitasking, prolonged decision-making), and the schedule was reorganized using the five focusing steps of TOC.
Each engineer was assigned a single priority, a time buffer was placed at the end of the plan, and all other activities were subordinated to the key goal: deliver the engine family on time.
The results were impressive – development time for the new engines was cut by about 50% compared to previous projects. This allowed Mazda to launch the Skyactiv line just as demand for fuel-efficient vehicles was rising. In 2013, the company returned to profitability, ending a multi-year streak of losses. At the 2013 TOC conference, Hitomi admitted that TOC/CCPM “probably saved the company from collapse.” Rami Goldratt also emphasized the success: “Mazda shows the world the power of TOC to generate results once thought impossible – financial, operational, and in terms of harmony and people’s growth.”
Beyond Mazda, TOC/CCPM has been applied in other automotive and manufacturing projects. Many carmakers and suppliers experiment with combining TOC and Lean methods, focusing on bottlenecks in production or development. Even though Toyota traditionally relies on its own Production System, TOC methods are increasingly recognized across the industry for their ability to deliver measurable results.
Applications of the TOC Beyond Automotive
TOC is a universal approach, applied in many sectors:
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Healthcare: In large hospitals, reorganizing patient discharge and bed turnover drastically reduced ER queues and waiting times. The constraint was the lengthy discharge process. After simplifying paperwork, ensuring faster room cleaning, and reallocating staff, waiting times were cut by more than half, patient throughput increased, and satisfaction improved. Reports from hospitals in the US and UK typically show a 50% reduction in waiting times and a 20–30% increase in admissions after TOC implementation.
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Telecommunications: One telecom reduced the time for new connections from 30 to 5 days by streamlining documentation flow. The bottleneck turned out to be a complex paper process; once simplified, installation teams worked much faster.
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Banking: A major bank reduced credit approval times from one week to one day after discovering redundant double reviews by two departments. Streamlining the process eliminated the constraint and improved responsiveness.
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Pharmaceuticals: Dr. Reddy’s Laboratories in India improved supply chain synchronization and introduced throughput accounting, which led to recognition as a top supplier in the US market.
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Consumer Goods (Appliances): Morphy Richards cut distributor inventory levels by about 40% and optimized working capital by applying TOC to its sales and distribution network.
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Public Administration: In Lithuania, TOC was applied to the process of processing claims for the Guarantee Fund. The average waiting time for payouts dropped from 388 days to just 63. TOC was later extended to healthcare and education management, improving efficiency in the public sector.
Typical outcomes of TOC implementations include:
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60–70% reduction in lead times,
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50% reduction in inventory,
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60% improvement in on-time delivery,
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70–80% increase in revenues and profits.
The Theory of Constraints in Poland
TOC has a long and growing presence in Poland. As early as the 1980s and 1990s, translations of Goldratt’s classics such as The Goal and Critical Chain were published. Goldratt himself visited Poland multiple times, lecturing at universities and conducting seminars for managers.
In recent years, TOC has been increasingly integrated with Lean Management. Poland has a strong Lean culture, and many firms now recognize that focusing on bottlenecks complements traditional Lean tools like Kanban and Kaizen. This integration is evident in conferences and initiatives, such as the Lean TWI Summit, which combines Lean, TWI, leadership, and modern technologies. The third edition (June 2026, Wrocław) will host Rami Goldratt as a keynote speaker. His presence confirms that the Polish improvement community values TOC and wants to learn directly from its source.
Examples of Polish implementations include:
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FORTE (furniture manufacturing): Improved production planning and reduced inventories, enhancing delivery performance for major clients.
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Koleje Mazowieckie (rail): Optimized train maintenance schedules by addressing workshop capacity as a bottleneck.
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Mlekovita (dairy): Applied TOC in logistics, significantly shortening order fulfillment times.
Overall, the idea of focusing on constraints has been well adopted in Poland. Rising costs, labor shortages, and fluctuating demand make the ability to “do more with less” increasingly important. TOC offers practical solutions by pinpointing where improvement efforts will have the greatest impact.
Rami Goldratt and the TOC – Lean TWI Summit 2026
Rami Goldratt, Eliyahu’s son, is today one of the leading global ambassadors of TOC. As CEO of Goldratt Consulting, he has worked with companies in automotive, textiles, chemicals, and services. He is also known for advancing TOC in sales and marketing, as well as in education through the TOC for Education program.
At the Lean TWI Summit 2026 in Wrocław, Rami Goldratt will be a special guest. In his talk Theory of Constraints from the Source of Knowledge, he will share his extensive experience and show how TOC can help companies thrive in today’s changing world. This will be his first visit to Poland in many years, making it a unique opportunity for practitioners to connect with the direct successor of Eliyahu Goldratt’s legacy.
In summary, both theory and practice show that TOC continues to inspire organizations worldwide. From Mazda’s turnaround to healthcare improvements and public sector reforms, TOC proves that focusing on constraints yields extraordinary results. In Poland, the method is gaining ground, often combined with Lean and TWI. With leaders like Rami Goldratt carrying the torch, the Theory of Constraints remains a powerful approach for industrial companies aiming to achieve “impossible” results.
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