What does the Theory of Constraints aim to improve in a firm’s processes?

The Theory of Constraints primarily aims to improve optimal throughput in a firm's processes. This management philosophy focuses on identifying and managing the bottlenecks or constraints within a production process that limit overall output. By addressing these constraints, organizations can increase their throughput, which is the rate at which products are produced and delivered.

The approach involves a systematic process of identifying the constraint, exploiting it to maximize its capacity, subordinating other processes to the constraint, elevating the constraint by potentially investing in additional resources, and then continuously repeating the process as new constraints emerge. This cycle ensures that the firm operates more efficiently and effectively, leading to improved throughput and better overall performance in meeting customer demands.