The Peruvian small and medium-sized enterprise (SME) furniture manufacturing sector faces critical challenges in operational efficiency, driven by disorganized workspaces, machine downtime, and inefficient material flow. Previous research has focused on larger industries, leaving a gap in the literature regarding the integration of Lean Manufacturing tools and the Theory of Constraints (TOC) for improving efficiency in SME furniture production. Addressing this gap is essential for offering practical solutions to resource-constrained firms. The pressing challenges include eliminating production bottlenecks, reducing waste, and improving machine reliability. This study contributed by developing an innovative production model that integrates TOC and Lean tools such as 5S, Kanban, and preventive maintenance. The model significantly improved production efficiency by 10%, reduced machine downtime by 15%, and optimized workflow. The practical implications of these findings extend beyond individual firms, offering a sustainable framework for SMEs to enhance productivity and competitiveness. This research advocates exploring Lean and TOC integration across other SME sectors, offering a proven approach to boost efficiency and competitiveness in similar operational contexts.