What is a Constraint?

A constraint is a restriction on the output of a system. The constraint acts as a throttle, essentially establishing an upper limit on the amount of output that can be created. This is an essential concept for a business, since the existence of a constraint will likely limit the amount of revenue that it can generate.

Constraint Management

There are several ways to manage a constraint. One is to circumvent it by designing a process or system to work around it, or by outsourcing work to another entity that is not subject to the same constraint. You can also maximize the output from a constrained system by ensuring that the constrained resource operates as close to 100% of its capacity as possible. This can be achieved by manning it with excess personnel, running three shifts, and assigning maintenance staff to it.

Examples of Constraints

It is useful to understand what types of constraints exist, so that you can identify and manage around them. Examples of the types of constraints that can arise in a business setting are as follows:

Equipment constraint. A production workstation that is operating at the top of its rated capacity.
Selling constraint. A selling process in which the sales demonstration team is already performing the maximum number of demonstrations per day.
Raw materials constraint. A supplier that has put a company on allocation for a critical raw material.
Regulatory constraint. A fishing license prevents a fishing boat operator from catching more than a specified amount of fish during the fishing season.