How is throughput determined in a theory of constraints system?

Throughput in a theory of constraints (TOC) system is defined as the rate at which the system generates money through sales. It is directly linked to the constraints within the system, which are the limiting factors that restrict the overall performance of the process. The constraint, or weak link, is the part of the system that determines how much product can be produced or service can be delivered.

By focusing on the constraint, an organization can maximize its throughput, as improving or optimizing the weak link directly impacts the overall output and profitability. If the constraint is not identified and managed, the system cannot achieve its potential throughput, regardless of how efficiently other components of the process may operate.

This concept is foundational in TOC, as it emphasizes the importance of understanding where the bottleneck lies and how it dictates the flow of resources and outputs in the system. By determining throughput based on the system's constraint, it aligns the operational focus with maximizing profit and efficiency.