How Theory of Constraints Can Drive Enterprise Impact

Aug 25, 2025

Retired Air Force Lieutenant General Andy Busch shares transformative insights on the Theory of Constraints (TOC) and its impact on supply chain efficiency. Drawing from a distinguished military career, he reveals how TOC slashed aircraft maintenance times and significantly reduced procurement delays. Joined by Kim Humphrey, CEO of AME, they discuss TOC's universal applicability across industries, emphasizing leadership's role in driving change, enhancing team alignment, and navigating complex operational environments for sustainable improvement.

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INSIGHT

TOC Is About Focus, Not Tools

Theory of Constraints (TOC) is fundamentally about focus and improving throughput across complex systems.
TOC prevents local optimization that fails to move the enterprise-level needle.

ANECDOTE

C-5 Turnaround With TOC

At Robbins AFB Andy led a TOC implementation that cut C-5 maintenance from 340 to 110 days.
The team turned aircraft delivery from ~200 days late to 50–80 days early within six months.

ADVICE

Lead With Clear Communication

Communicate clearly and align stakeholders before executing large-scale change.
Motivate the workforce because transformations need leadership and buy-in, not just tools.

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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
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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