Goldratt - Theory of Constraints
1 identify the systems constraints
2 exploit the systems constraints
3 subordinate everything else to the above decision
4 elevate the systems constraints (identify the next constraint)
5 if in a previous step, a constraint has been removed, go back to
step 1 but do not allow inertia to become the systems constraints.
Goldratt emphasises three questions:
- What to change?
- To what to change?
- How to effect the change?
He suggests that to treat the cause of the symptoms is more effective than treating the symptoms. He also contends that the optimal of the sum is not equal to the sum of the optimals. Managers, he argues, too often try to operate on a broad front. Thinking that if they do everything well they must be achieving the goals of the organisation, whereas only certain activities can achieve the goals while other do not.
Now read the case study on the Brickman Group which was written by a representative of the Brickman Group presenting the company's story at a TOC workshop in November 1998.