Goldratt E. - Theory of Constraints - 1999.pdf

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What is this thing called
THEORY
OF
CONSTRAINTS
and how should it be implemented?
Eliyahu M. Goldratt
1
Table of Contents
Introduction/ix
PART ONE
What
is this thing called
Theory of Constraints?
1. The Five Steps of Focusing/3
2. The Process of Change/9 3. How
to Prove
Effect-Cause-Effect/22
4. How to Invent Simple Solutions
Evaporating Clouds/36
PART TWO
How
should
it be
implemented?
1. How to Become a Jonah/84
2. The Devastating Impact of the
Organization's Psychology/91
3. Reaching the Initial Consensus and the Initial Step/97
4. How to Reach the Top/105 5. What
About Existing New Projects?/109
APPENDIX
Two Selected Readings from
The Goal/129
vii
2
PART ONE
What is this thing called
THEORY OF
CONSTRAINTS?
3
1.
The Five Steps of Focusing
The message of this book is not bottlenecks or cutting batches.
It's not even how to arrange the activities of the factory floor. As
a matter of fact, the message is the same for any aspect of any
company from product design and marketing to manufacturing
and distribution. Everyone knows that the actions of marketing
are guided by the concept of cost and margins, even more than
the actions of production. And everyone knows that the best
salesman in his/her company is the one who violates all the
rules—which immediately implies that the rules in marketing
are as wrong as those in manufacturing.
We grossly underestimate our intuition. Intuitively we do
know the real problems, we even know the solutions. What is
unfortunately not emphasized enough, is the vast importance
of verbalizing our own intuition. As long as we will not
verbalize our intuition, as long as we do not learn to cast it
clearly into words, not only will we be unable to convince
others, we will not even be able to convince ourselves of what
we already know to be right. If we don't bother to verbalize our
intuition, we ourselves will do the opposite of what we believe
in. We will "just play a lot of games with numbers and words."
If we don't bother to
verbalize our intuition,
we ourselves will do
the opposite of what
we believe in.
4
How do we listen to what we intuitively know to be right?
How do we go about verbalizing it?
The first step is to recognize that every system was built for a
purpose. We didn't create our organizations just for the sake of
their existence. Thus, every action taken by any organ—any part
of the organization—should be judged by its impact on the over-
all purpose. This immediately implies that, before we can deal
with the improvement of any section of a system, we must first
define the system's global goal; and the measurements that will
enable us to judge the impact of any subsystem and any local
decision, on this global goal.
Once these are defined, we can describe the next steps in two
different ways. One, in which we are using the terminology of
the system that we are trying to improve. The other, using the
terminology of the improvement process itself. We find that
both descriptions are very helpful and only when both are con-
sidered together, does a non-distorted picture emerge.
How to sort out the important
In our reality any
few from the trivial many? The key
lies in the recognition of the
system has very few
important role of the system's
constraints.
constraints. A system's constraint
is nothing more than what we all
feel to be expressed by these words: anything that limits a
system from achieving higher performance versus its goal. To
turn this into a workable procedure, we just have to come to
terms with the way in which our reality is constructed. In our
reality any system has very few constraints (this is what is
proven in
The Goal,
by the Boy-Scout analogy)* and at the same
time any system in reality must have at least one constraint.
Now the first step is intuitively obvious:
• See Appendix 1.
5

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