This paper builds on the original five focusing steps as defined by Goldratt (1992) as one of the constructs of the Theory of Constraints (TOC). The shortcomings identified are the sequential nature suggested by the five seemingly sequential steps, the lack of clarity relating to decisions that allows moving to next or previous steps, the assumed inapplicability of the five steps to dealing with market-and non-physical constraints (such as policy and behavioural constraints), and the lack of clarity surrounding an ideal constraint location. Deductive reasoning is applied to existing literature to arrive at conceptual solutions to the identified problems. The paper transforms the five focusing steps into a decision map which still includes all five steps, but allowing appropriate decision points to guide application of this process. It expands the applicability of the five focusing steps to both market and non-physical constraints, as well as presenting a logical argument why the best possible constraint location is 'the size of the market chosen to be served well'. Finally further clarity is provided why exploiting and subordinating to the constraint is necessary before constraint elevation should take place.Keywords: theory of constraints (TOC), five focusing steps, decision points, continuous improvement
IntroductionThe Theory of Constraints is a philosophy of focused continuous improvement based on systems thinking and system principles (Goldratt 1990a, 8-9, 58-63). The system principle, from which this philosophy lends its name, is the principle that all systems are constrained, and if the constraint is managed well, will provide a leverage point from which huge gains can be achieved (Senge 1990, 63-65). Goldratt (in Chapter 1 of Cox and Schleier, 2010) argues that TOC can be summarised with this one word: focus. One of the well known elements of the Theory of Constraints, is the five focusing steps, which allows for the focus element of the philosophy. The five focusing steps were put forward by Goldratt (1990a, 58-63) as a logical sequence of steps in order to capitalise on the constraint principle. It further allows that once a constraint is broken, one should continue seeking the next constraint, which even though the next constraint will not be as restricting as the previous constraint, will nevertheless still constrain the organisation.Even though the five focusing steps make logical sense, and are always described as five sequential steps in the literature, in reality a number of decision points are to be found within the five focusing steps. Understanding these decision points will allow proper application of the five focusing steps since these decision points direct the focus to the essence of what the five focusing steps strive to achieve, namely a continuous process of doing what is necessary, and refraining from doing what is not necessary, in order to maximise system performance. This new verbalisation aims to improve the understanding and practical application of the five focusing steps. The ...