Constraint Finder (Goldratt Five Steps)

Companion to: Business Operator's Blueprint Chapters 3 & 17 - Workbook tabs Ch3 · Constraint and Ch17 · Multi-Site Logistics

Goldratt's Five Focusing Steps - Walkthrough

Answer each step honestly. The tool will assemble a 1-page action plan you can print or hand to your operating team.

Step 1. IDENTIFY the constraint

Where does work pile up (WIP, queue)?

Which resource is always "full"?

If demand doubled tomorrow, which station/team breaks first?

Current throughput at the constraint (units/hour or $/hour)

Step 2. EXPLOIT the constraint (no capex)

Hours/week the constraint is actually producing

Hours/week the constraint is available

Idle reasons (setup, breaks, waiting for material)

Step 3. SUBORDINATE everything else

Upstream stations — are they paced to constraint?

Is there a buffer (time/inventory) just before the constraint?

Step 4. ELEVATE (capex / hiring / outsourcing)

Cost to add one more unit of constraint capacity ($)

Throughput gain expected (units/hour or $/hour)

Step 5. PREVENT INERTIA (when constraint moves)

Next likely constraint once this one is fixed

How this works

Eliyahu Goldratt's Theory of Constraints (TOC) argues that every system has exactly one binding constraint at any given moment. Improving anything else is waste. The Five Focusing Steps are the disciplined order: Identify, Exploit, Subordinate, Elevate, Prevent Inertia.

This tool walks each step, then assembles a 1-page action plan with owners and timelines. Pair it with workbook tab Ch3 · Constraint for the multi-week tracking template.

Educational only. Not professional advice. Always validate model outputs with your accountant, attorney, or qualified specialist before acting.

About this tool

Part of the Business Operator's Blueprint companion toolkit. The full guide (250+ pages, $79) maps every operating-system framework Phil Baratelli has tested across hospitality, manufacturing, distribution, and capital allocation. Get the guide →

Baratelli Institute · Philip A. Baratelli, CPA, MBA · baratelliinstitute.com