| Recommended: If you want to learn more on this topic.. Unless you are willing to commit to a workshop with a TOC Expert, you cannot beat the educational material developed by Eli Goldratt, the originator of the Theory of Constraints. He is an amazing teacher. The 8 Videos in his Satellite Program are a best-buy for a company, intended for use by groups of employees. His provocative coverage of every industrial application of TOC challenges managers to think in new directions, and to recognize the sacred cows in their organization and their own thinking. The 16-CD Self Learning Program is extracted from the same material but intended for use by individuals on their own PCs, rather than groups. The TOC Insights is a new interactive PC-based tool for individuals. As a TOC Expert I thought they were too "cute" ... until I used them with clients. They proved to be highly effective learning tools for the 5 major applications, and the Distribution and Supply Chain solution is documented in detail here for the first time anywhere. |
Planned: a Monthly TOC eZine This EZine is intended to be 100% practical, offering tips, advice and illustrations of users' experiences with the different TOC applications. TOC Experts with practical suggestions to real problems they have encountered during implementations will also contribute. The EZine will promote the use of TOC in combination with other technologies, for improved results. We will be taking subscriptions soon. |
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Focus & Leverage Minimum effort Fast, direct, massive results Sustainable, continuous breakthrough improvement |
Theory of Constraints
With the perspective that comes from 30 years in industry, including 17 years as a TOC expert, I don't hesitate to make the claim: Theory of Constraints is in a league of its own as a tool for managers who want to see fast, direct, and massive performance improvement with a minimum of wasted time and expense; and for managers who want to see sustained, continual breakthrough performance.
I want to make it clear that I'm not claiming that TOC is necessarily better than anything else; it is simply not comparable with other technologies. Someone who does not understand Theory of Constraints might compare TOC's production approach with Lean ... but TOC's production approach is only a fraction of theTOC body of knowledge. Someone equally unfamiliar with TOC might compare Six Sigma with TOC's Thinking Processes ... but again, these are only a fraction of the TOC (most TOC users are probably even unaware of them), and anyway the comparison is of apples and oranges.
In fact, TOC and Lean work beautifully together; TOC and Six Sigma work beautifully together.
Typical Results?
90% of the Theory of Constraints applications simply have no equivalent in other popular bodies of knowledge. The one application that is most often compared to other technologies is the application to manufacturing, where it is common to see results such as these, with initial results often evident within 90 days of the start of an implementation:
- 20%, 30% even 40% additional Throughput from the same resources
- Lead time reduced by 50% to 90%
- On time delivery percentage or service level heading for the high 90's
These results are commonly achieved without mapping any processes, balancing lines, changing plant layout, or implementing sophisticated software. Dedicated software can be extremely helpful on occasions, however (see comments under "TOC and ..." in tthe NavBar). For one TOC application (Project Management), software is essential.
Much more than just Manufacturing
When Eli Goldratt conceived the technology that ultimately became the Theory of Constraints, it was primarily a factory scheduling and control technique. It has evolved to offer powerful (but unconventional) solutions for every element of a manufacturing business, including innovative supply-chain solutions, but more than this: it can be applied to any organization, for-profit or otherwise. For example: schools, the military, health care, banks, ... even a donut shop. The results are always the same in principle; fast, massive, sustainable improvement with relatively little effort and the enthusiastic support of employees; and, a methodical basis for continuously making performance breakthroughs. (Sort of "kaizen" on steroids. )
Common Thread
In every Theory of Constraints application there is a consistent philosophy of improvement, set of principles, vocabulary, and basis for measurements. There is also always a basis for alignment from a company's global strategy to the minute-to-minute operation of any element of the business.
Plays well with others in the sandbox
Because of its focusing characteristic, TOC is the perfect tool for making sure that investments in other, powerful improvement technologies translate into large benefits, too. It is NOT an either/or world when it comes to performance improvement.
This Site
I designed this site to be explored.
You'll find every major TOC application explained, a walk-through of the typical business case for a TOC implementation in a manufacturing business, recommendations of resources to learn more, explanations of how Theory of Constraints and other technologies combine for even more power, and advice on consultants (I am one; who better to advise you?).