Step 1. Identifying the system’s constraints Step

Step 2. Working to exploit those constraints (either through strengthening the constraint or getting maximum performance out of the key constraint)

Step 3. Subordinating everything else to the above decision (given the key constraint, all operational decisions involve improving the processes as much as possible relative to this controlling constraint, e.g. a bottleneck in a production process).

Step 4. Working to elevate the constraint (improve or eliminate the bottleneck and then reexamine the system). Once the critical constraint is eliminated, a new constraint will arise to take its place. So the process continues until the smallest level constraint is identified that can impact on the whole system.