The Theory of Constraints of Eliyahu Goldratt – Self-Learning Program
The Theory of Constraints of Eliyahu Goldratt is a model that is the practical result of Eli Goldratt’s work on “how to think”. In a number of books, Goldratt described certain thinking processes and their applications.
Central to the concept of TOC is the acknowledgement of cause and effect. The Thinking Processes of TOC give us a series of steps which combine cause-effect and our experience and intuition to gain knowledge. TOC is a verifiable philosophy. By knowing how to think, we can better understand the world around us; by better understanding we can improve.
Organizations are a complex web of people, equipment, methods, materials and measures. This detail complexity is bad enough, then add to it the dynamic complexity of changing customers, suppliers, workforce, regulations, etc. and you have a picture of the challenge faced by today’s management team.
Traditionally, management has divided the organization into smaller, more manageable pieces. The objective is to maximize the performance of each part. After all, global improvement is the sum of the local improvements. Right?
Wrong! TOC claims that a change to most of the variables in an organization will have only a small impact on the global performance – on the bottom line. There are very few variables, perhaps only one, where a significant improvement in local performance causes a significant improvement in global performance. Such a variable is called a constraint. You can compare it to the weakest link in a chain.
The essence of the TOC approach is that If you want more of your goal, you must:
A. Identify your constraint
B. Focus on the constraint (A company must first know its goal and the necessary conditions for achievement. Then it must identify the constraint(s), that is/are limiting the level of achievement of that goal.
C. Follow it through (The Process Of On Going Improvement:
1. Identify the constraint
2. Exploit it
3. Subordinate all other operations to the necessity to exploit the constraint
4. If after #2 and #3 more capacity is needed to meet market demand, Elevate the constraint.
5. Go back to #1, but don’t let inertia become the system’s constraint)
Most people know the Theory of Constraints as an approach for:
* Manufacturing environments
* Distribution and Supply Chain
* Project Management
Presented by Dr. Eliyahu M. Goldratt, each session is divided in various video segments of about 10 minutes each so that users can learn at their own speed and easily review any of the material, as they need!
1. TOC – Self Learning Program on Operations (USD $59.00)
How can we replicate Alex Rogo’s achievements described in the book, The Goal? The key lies in the ability to transform production from the prevailing cost-world mentality into the common sense approach of the throughput-world mentality.
2. TOC – Self Learning Program on Finance and Measurements (USD $59.00)
Every reader of The Goal is aware that common sense will not prevail on the shop floor unless the financial approach changes. Learn what is a sensible financial approach which bridges the gap between the bottom line measurements and the local measurements.
3. TOC – Self Learning Program on Project Management and Engineering (USD $59.00)
Projects (especially in multi-project environments) have characteristics which drastically differentiate them from production. Learn how projects can be finished ahead of time, within the allotted budget and without compromising on the content!
4. TOC – Self Learning Program on Distribution and Supply Chain (USD $59.00)
Since every company is a link in a supply chain, most already realize that as long as the end consumer has not bought, nobody has sold. Learn the procedures and measurements to help the distribution link to drastically improve its performance.
5. TOC – Self Learning Program on Marketing (USD $59.00)
Marketing should not be confused with sales nor with advertising. Marketing is the ability to create a competitive edge. Learn how to put the systematic framework that enables a company to bring the market to want its products.
6. TOC – Self Learning Program on Sales and Buy-in (USD $59.00)
Not just the sales people but every manager in every company is required to sell; to sell their products, their suggestions and decisions, to clients, bosses or their own people. Learn an effective, systematic way to sell; to overcome resistance to change.
7. TOC – Self Learning Program on Managing People (USD $59.00)
Learn the TOC powerful methods for conflict resolution, empowerment and team building. In the long term this program probably provides the most important know-how.
8. TOC – Self Learning Program on Strategy and Tactics (USD $59.00)
The objective of any company is to implement an effective and lasting Process Of OnGoing Improvement. This program molds the TOC know-how into a clear, over-all strategy backed up by detailed tactics.
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