Identify who created the theory of constraints, and explain the premise of the theory. Identify the two components of the theory of constraints and discuss, in detail, the elements contained in each of the components and where in the value chain each can be applied.

Explain what the theory of constraints is and identify it as developed by Dr. Eliyahu Goldbratt, an Israeli physicist, educator, and management specialist. Communicate that the theory of constraints is designed to assist those who are undertaking the task of improvement through understanding what to change, what to change to, and how to cause the change. Explain that the theory can be used in a supply chain strategy as a method of achieving continuous improvement. Identify and describe the following two components of the theory of constraints (Rahman, 1998):

Component #1

A company should first articulate its overall goal, then it should proceed with the following steps:

- Identify the constraint, making sure to prioritize according to the impact on the goal.

- Decide how to exploit the constraint.

- Subordinate all other processes to the above decision.

- Elevate the constraint.

- If, as a result of these steps, the constraint has moved, return to step 1; do not let inertia become the constraint.

- The drum-buffer-rope (DBR) scheduling methodology

- The buffer management scheduling system (referred to as the logistics paradigm)

Component #2

A generic approach for investigating, analyzing, and solving complex problems called the thinking process (TP).