How Theory of Constraints Can Drive Enterprise Impact
Supply Chain Now
Intro
This chapter delves into the Theory of Constraints and its impact on organizational performance and supply chain management. It highlights ways to enhance production timelines and provides practical tips for effectively implementing TOC principles in business operations.
In this episode of Supply Chain Now, Scott Luton and special guest host Kim Humphrey, President & CEO of AME (Association for Manufacturing Excellence), welcome retired Air Force Lieutenant General Andy Busch, Strategic Advisor at Goldratt Consulting, for a high-impact conversation on the Theory of Constraints (TOC) and its ability to transform complex operations. Drawing from a 38-year military career, Andy shares how TOC’s five focusing steps helped him cut C-5 aircraft maintenance timelines from 340 days to 110, save hundreds of millions through inventory discipline, and reduce a 15-month procurement backlog to just three months. He also highlights the leadership skills required to drive these changes, including clear communication, organizational alignment, and active workforce engagement.
They also discuss the universal applicability of TOC across industries and geographies, with Andy recounting implementations at the Defense Logistics Agency, large-scale MRO depots, and in international settings such as Japan and India. From managing high-variability environments to avoiding the trap of local optimization, the conversation delivers actionable insights for supply chain and manufacturing leaders seeking breakthrough results, stronger team alignment, and sustained performance improvement in today’s volatile business climate.
Jump into the conversation:
(00:00) Intro
(02:47) Meet Andy Busch
(05:29) From Utah trails to global supply chain insights
(13:32) The impact of the Theory of Constraints
(25:28) Implementing consumption pull systems
(29:29) Five focusing steps vs. five whys
(30:42) Work in process discipline
(32:44) Overcoming supply chain hurdles
(37:05) International experiences with TOC
(43:07) How to navigate industry volatility
(45:45) Why focus is key to organization's success
Resources:
- Learn more about the AME St. Louis International Conference: https://www.ame.org/ame-st-louis-2025-international-conference
- Connect with Andy Busch: https://www.linkedin.com/in/andrew-e-busch/
- Learn more about Goldratt Group: https://goldrattgroup.com/
- Connect with Kim Humphrey: https://www.linkedin.com/in/kimberlee-kim-h-5977474/
- Learn more about AME: https://www.ame.org
- Connect with Scott Luton: https://www.linkedin.com/in/scottwindonluton/
- Learn more about Supply Chain Now: https://supplychainnow.com
- Watch and listen to more Supply Chain Now episodes here: https://supplychainnow.com/program/supply-chain-now
- Subscribe to Supply Chain Now on your favorite platform: https://supplychainnow.com/join
- Work with us! Download Supply Chain Now’s NEW Media Kit: https://bit.ly/3XH6OVk
- WEBINAR- Mastering Data in the AI Explosion Age - Managing the Fuel That Powers Innovation: https://bit.ly/4ogPN1k
- WEBINAR- Real stories: Fast-tracking value, a pioneering digital transformation with impactful results.: https://bit.ly/4mgp1EW
- WEBINAR: Real Shipping Stories. Real Money Saved.: https://bit.ly/45PegUm
- WEBINAR: From Compliance to Impact and Competitive Advantage: How to Decarbonize Your Supply Chain: https://bit.ly/47uXKKo
This episode was hosted by Scott Luton and Kim Humphrey and produced by Trisha Cordes, Joshua Miranda, and Amanda Luton. For additional information, please visit our dedicated show page at: https://supplychainnow.com/how-theory-constraints-drive-enterprise-impact-1472
The AI-powered Podcast Player
