Goldratt and the theory of constraints. the quantum leap in management.

Businessmen and managers, consultancy clients, readers of the Goldratt novels, and workshop attendees often ask: What is this Theory of Constraints' How can it benefit me' How is it different from other management theories' Is there something I can read to quickly understand its fundamentals' This book is an answer to these questions. Using engaging language and offering many real-life examples, it provides an overview of the methods and tools of the Theory of Constraints: Drum-Buffer-Rope, Buffer Management, Throughput Accounting, Pull Distribution, Irresistible Offer, Corporate Strategy, and Viable Vision. You will learn how to recognize and use constraints, how to complete projects quickly and reliably, and how to gain a competitive lead and to turn it into profit.

Table of Contents; Preface; Why this book?; Acknowledgements; What are the goals of the ToC?; So what are the benefits to me?; So who was Eli Goldratt?; How did the ToC come about?; Why "Theory ...?"; " ... of Constraints?"; So where is the ToC today?; What are my business targets?; Earn money; Excite markets; Ongoing improvement; Secure employment; Profitable growth; Food for thought; Earning money-what exactly does it mean?; Throughput (T); Inventory/Investments (I); Operating expense (OE); Financial decisions; How successful are we?; Net Profit (NP); Return on Investment (RoI).

Productivity (P)Investment Turns (IT); Food for thought; What keeps us from earning money?; There is a constraint!; Five steps toward continuous improvement; 1. Identify the constraint; 2. Decide how to optimize use of the constraint; 3. Everything else must be subordinate to thisone decision; 4. Elevate the constraint; 5. Start over if the constraint shifts; Food for thought; We are not producing enough!; Problem: Local optima; Dilemma: But we do need local optima!; Idle resources are a waste; Solution: Drum Buffer Rope; Drum; Buffer; Relay runner work ethic; Buffer management.

The dangers of successShifting the constraint; Relay runner work ethic; Buffer management; The dangers of success; Shifting the constraint; Food for thought; What about finances?; Dilemma: Throughput vs. Costs; The chain analogy; Managing the chain in the "cost world"; Managing the chain in the "throughput world"; The core conflict; Do costs really follow the additive rule?; Solution: The Throughput accounting system; How much profit do we make from our products?; Find the constraint; Determine the throughput created by the product; Determine usage of the constraint.

Calculate the relationship between throughput andconstraint usageBusiness profit; Is the investment worth it?; Impact of Investment on Throughput; Increasing the constraint's capacity; Increasing the demand for X; Decreasing the costs of raw materials or purchased parts; Conclusions; Impact of Investment on Operating Expenses; Impact of Investment on Inventory and Investment Levels (I); Manufacturing yourself or purchasing?; What about inventory?; Food for thought; What lies behind the constraint?; The inherent simplicity of complex systems; An analogy: A visit to the doctor; Diagnosis.

Treatment planCarrying out the treatment; The methods of effective thinking; What needs to be changed?; Tool 1: The Conflict Cloud; Tool 2: The Current Reality Tree; Where should the change lead?; Tool 3: Resolving the conflict; Tool 4: The Future Reality Tree; How do we bring about these changes?; Tool 5: The Prerequisite Tree; Tool 6: Transition tree; Food for thought; Our stock levels are too high ... and often too low!; Dilemma: Large warehouse or small warehouse?; What is distribution?; Constraint: The client willing to buy; Using the constraint; How high do stock levels need to be?

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