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How Theory of Constraints Can Drive Enterprise Impact

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 Additional Links & Resources: Learn more about the AME St. Louis International Conference: https://www.ame.org/ame-st-louis-2025... Connect with Andy Busch:   / andrew-e-busch   Learn more about Goldratt Group: https://goldrattgroup.com/ Connect with Kim Humphrey:   / kimberlee-kim-h-5977474   Learn more about AME: https://www.ame.org Connect with Scott Luton:   / scottwindonluton   Learn more about Supply Chain Now: https://supplychainnow.com Watch and listen to more Supply Chain Now episodes here: https://supplychainnow.com/program/su... 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... The content in this video, including all audio, visuals, and graphics, is the property of Supply Chain Now and is protected by copyright law. Unauthorized use, reproduction, distribution, modification, or re-uploading of this content in any form is strictly prohibited without explicit written permission from Supply Chain Now. For licensing inquiries or permissions, please contact us at [email protected] © 2025 Supply Chain Now. All rights reserved.