Step 4: Elevate the Organization’s Binding Constraint(s)
Once actions have been taken to make the best possible use of the existing constraints,
the next step is to embark on a program of continuous improvement by reducing the
limitations that the binding constraints have on the organization’s performance. However,
if there is more than one binding constraint, which one should be elevated? For
example, in the Schaller Company setting, there are two binding constraints: the drilling
constraint and the polishing constraint. In this case, the guideline is to increase the resource
of the constraint that produces the greatest increase in throughput. To determine
the most profitable effort, assume that one additional unit of resource is available
for drilling (other resources are held constant), and then calculate the new optimal mix