Theory of Constraints (TOC) was developed by Dr. Eli Goldratt by applying the principles and processes of the “Hard Sciences” to the science of analyzing, managing, continuously improving and predicting the performance of organizations in a holistic way. The most important of these are the fundamental beliefs in science, define in the TOC as the four pillars, that “all complex systems are governed by inherent simplicity” and that “all conflicts (inconsistencies) with systems can be resolved…if we can find the erroneous assumption(s)”, fundamental believe that “people are good” and the understanding that we must check our assumptions, or as we say in TOC “never say I know”. The essence of these beliefs in science is summarized with the truism that “the strength of any chain is governed by the strength of its weakest link”. If you want to strengthen the chain, and improve the performance of the system as a whole, you need to find and strengthen its weakest link. The application of this simple “governing law” can enable us to differentiate between the many parts, processes and relationships within a system that can be improved, from those few that must be improved to get more goal units.
TOC has evolved into a holistic management philosophy, and set of focusing and critical thinking processes that enable us to determine what really is limiting or blocking further improvement in your chosen subject matter or system, and also how to identify and implement the necessary and sufficient solution to overcome these limitations in a way that will achieve the buy-in and active contribution of all the key stakeholders.
TOC’s application specific generic solutions that provide the necessary and sufficient constraint focused rules for improving and managing functional areas, such as
- Managing Manufacturing, Supply-Chain logistics (drum-buffer-rope, replenishment, dynamic buffer management).
- Project management (Critical Chain Project Management).
- Finance and Measurements (Throughput Accounting).
- Sales & Marketing (Building Unrefusable Offers).
- Business Strategy.
TOC is using some additional powerful tools that are used for analysis and creating the specific solutions for our clients. The tools are:
- The Five Focusing Steps.
- TOC’s Thinking Processes (TP)
- TOC’s Throughput Accounting (TA)
- TOC’s Six (Necessary & Sufficient) Questions of Technology
- TOC’s Innovation Processes (IP)
Dr. Eli Goldratt
Eli Goldratt was an educator, author, scientist, philosopher, and business leader. But he was, first and foremost, a thinker who provoked others to think.. Dr. Goldratt created and developed the Theory of Constraints, that embodies a methodology to help organizations and individuals. He is internationally renowned as a leader in the development of new management methodologies, whose work continues expanding worldwide through consultants, academics and educators, and is used by numerous multinational companies.
He introduced the TOC concepts in his best-seller “The Goal”, a management manual written in the form of a novel. This book was followed by various works, notably including “It’s not luck”, “Critical chain”, “Necessary but not sufficient”, “The Choice”, and “Isn’t it obvious?”
1947- Died 2011 (the text from Eli’s gravestone)
“I smile and start to count on my fingers: One, people are good. Two, every conflict can be removed. Three, every situation, no matter how complex it initially looks, is exceedingly simple. Four, every situation can be substantially improved; even the sky is not the limit. Five, every person can reach a full life. Six, there is always a win/win solution. Shall I continue to count?”
A personal note (from Progressive Flow CEO – Yaniv Dinur):
Eli was my teacher and my friend. I had the privalage to been asked by the family to lament Eli at his funeral. Few lines from my eulogy can explain what Eli was to me – “He was a philosopher and an inventor, and the extremely precious time we spent together exposed me to the ideas that were born that very moment, to new processes, new insights that one minute earlier we had no idea about their very existence. He never stood in one place – always renewing, progressing, storming forwards and swept us to follow him. In his presence, the brain cogs were always on overtime, never resting, for he demanded of us, his disciples, to try and run with him at the speed of his thought – and so many times we failed…Eli, I have been most privileged and honored, I received a wonderful gift – to be one of your closest students, and I will close with the last words of our last conversation, from only a few days ago – I told you, there are no words with which I can thank you, Eli, only actions! I will continue on your path”.