Theory of Constraints vs. Lean: what’s better for optimizing processes and increasing profitability? I’ll admit that these are two wholly distinct and separate methodologies for use in any workplace. That said, you’ll often find some crossover between the two, especially where the notion of process improvement comes into play. Understanding the synergy and more varied approach afforded to organizations that leverage both makes for a powerful combination.

That said, we will take a closer look at the nuts and bolts behind each of these methodologies, explaining why they work and how you can adopt a hybridized approach to utilizing them. While they might seem too disparate to work with one another, you can make use of the best of worlds to arrive at a more efficient, less wasteful workflow.

Theory of Constraints vs. Lean: Head-to-Head Comparison

At their core, both of these methodologies are focused on the same core concept: efficiency. The way that both methodologies approach it couldn’t be more distinct, however. Lean is all-encompassing, transforming organizations at the cellular level. ToC is a little more constrained, focusing solely on the process. As we dive a little deeper into each, you can see where both methodologies have strengths.

Primary Focuses

Lean itself is focused on the elimination of all Muda, or wastes, per the parlance. Going a bit further, wastes are further categorized and classified, with distinct types becoming readily apparent as you get more accustomed to Lean. Wastes like overproduction, defects, excess inventory, excess motion, and others are all part of the focus of Lean’s overarching goals. Ideally, removing these wastes helps to increase efficiency, but the how of getting there will be covered in-depth when we cover the methodology behind it.

The Theory of Constraints is focused on bottlenecks first and foremost. The bottleneck, or constraint, is seen as a hindering force that restricts flow and efficiency. By focusing on the constraint, you can begin to identify contributing factors to minimize or remediate, leading to an increase in overall throughput.

As you can likely guess, the Theory of Constraints is far more focused as far as aims go. Lean can get focused on the details, but is focused more on the big picture. ToC instead focuses on a single focal point, the constraint, instead of the whole of production workflows.

Driving Principles

The driving mission behind Lean is focused on the reduction of waste across the board. By embracing continuous improvement, you’re enabling the means to see substantial overall performance gains. For Lean, it is very much a matter of looking at where the weak points and wastes are, eliminating them, and keeping that cycle rolling regularly.

In contrast to that, the Theory of Constraints is far more singular in its mission statement. By focusing improvement efforts on the single weakest link, you’re going to see more significant results. Weak links will arise in any workflow, and being able to ably address those, optimize, and turn them into a strength is the underlying principle that drives the methodology.

To keep it short and sweet: Lean is far more focused on the bigger picture, while the Theory of Constraints is looking at single elements in dire need of improvement. The overall aim is the same, but the approach behind these principles is going to be the largest determining factor.

Methodology

As to how you implement changes and improvements in Lean, you’ll see quite a few of the usual suspects. Tools like Value Stream Mapping, 5S, JIT, Kanban, and Gemba Walks are all part of the toolbox, with the aim being to utilize these tools to create continuous, uninterrupted flow. In some regards, the toolchain in play is similar to Six Sigma, with quite a bit of overlap.

The Theory of Constraints is far more rote in how it approaches the remediation of constraints. All ToC initiatives are going to rely on the use of the five-step process. You identify the constraint, exploit it, subordinate everything else to it, elevate it, and then repeat as necessary. The Five Focusing Steps are one of the core tools at your disposal when looking at ToC, and allow for fast results.

While Lean might have more ticking away under the hood, the overall aim between both methodologies is largely unchanged. You’re looking to increase efficiency, maximize throughput, and ultimately see an increase in revenue across the board. However, the means of getting there are fairly distinct, as you’ve seen.

Goals

Finally, when discussing the goals of both methodologies, we can see some distinctions. Lean is all about creating value. By removing non-value-added activities, you’re increasing the overall value of your output. By utilizing the aforementioned tools and focusing your efforts across the whole of production, you start to see greater returns.

ToC, by comparison, is all about the increase in throughput. While you’re focusing on a pain point, the management of constraints is the overall goal. By turning weak links into strengths, you’re creating an environment where success is a given.

When it comes to overall goals, these methodologies couldn’t be more different. The ultimate goal is to increase throughput and minimize waste. That said, they remain fairly distinct in their approach, with Lean being far more all-encompassing while ToC is focused.

Synergy and Opportunities

As you’ve likely guessed from our previous points, it isn’t really a matter of Theory of Constraints vs. Lean, but rather where you can make use of these two methodologies for a powerful hybridized approach. Adding ToC as part of the toolchain for Lean makes for an effective means of addressing weak points without compromising the core goal of your Lean efforts.

ToC for Lean Efforts

In this approach, you’re using the Theory of Constraints to identify what and where to divert your efforts. However, instead of making use of the Five Focusing Steps, the how of remediating pain points is instead obtained from Lean. You might make use of the Five Focusing Steps at the start to identify areas of concern. When it comes time to remediate the bottleneck, you’ll want to make use of some of the usual elements from Lean to make a change.

5S can help to organize the workspace, getting things ready for the necessary changes. From there, you might want to create standardized work. This helps to create consistent procedures and processes, guiding the path toward operational excellence. If you’re needing to make fast changes, then a Kaizen event can see a breakthrough when it comes to any one specific bottleneck.

This hybridized approach means improvement efforts aren’t wasted. You don’t want to focus on non-critical elements while looking to remediate any sort of pain point. Instead, you’re focusing on areas that have the most impact, increasing overall throughput and making it stick.

Lean For Exploitation of Constraints

The second of the Five Focusing Steps is to exploit the constraint. That means you’re doing everything you can with the constraint without expending any sort of external resources, like funds, to get the most of it. Lean is a fantastic way of exploiting constraints. As mentioned, you’ll be focusing on removing waste and non-value-added activities from a given constraint.

In turn, this allows any organization to increase overall capacity, increasing the throughput of the workflow.

Other Useful Tools and Concepts

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Conclusion

It isn’t a matter of determining the winner of the Theory of Constraints vs. Lean. Rather, you’re looking to utilize both these approaches to create a more flexible, effective means of addressing bottlenecks and maximizing throughput. Successful use of a hybrid approach isn’t just good for handling constraints, but you’ll see significant returns.