Eli Schragenheim, dedicated to making Theory of Constraints (#TOC) solutions accessible to SMEs all over the world, explains two big elements that he misses in the vast majority of ERP systems. With rare exceptions, a manufacturer who can't handle the following challenges must be inherently fragile, agree? 1. WHAT TO PROMISE - what can we promise our clients with a good chance of meeting all commitments? 2. HOW TO DELIVER WHAT WAS PROMISED - once we have committed to a client, how can we ensure fulfilling the delivery on time and in full? Inability to address these challenges creates a fundamental gap in the vast majority of ERPs. No wonder ERPs fail to yield the full expected value and return on investment.
Kelvyn Youngman created an manages the website dbrmfg.co.nz which is one of the first website that was created in the early 2000's dedicated to the Theory Of Constraints (TOC). He explains how he built it up over the years so that it became one of the richest sources of TOC information on internet. He talks about his own personal TOC journey and the work he did very early on implementing TOC in Japanese manufacturing companies. He explains the origins of the URL he chose: www.dbrmfg.co.nz (Drum Buffer Rope in Manufacturing).
When one of our MSc students introduced critical chain at his employer GSK, he used all the rules of flow, including critical chain scheduling and progress measuring. I loved the way a senior project stakeholder described why he preferred the critical chain approach. [...] Before critical chain, he felt frustrated because most of the reporting was retrospective. [...] Now with critical chain he felt much more confident that project teams would proactively involve him as soon as they noticed a potential issue. “Now the fever chart flags potential issues in advance, and I can help overcome obstacles and prevent problems escalating.” [...]
McDonald’s in France have over 1,400 restaurants. The French market is recognised as the most difficult market in the world because clients eat at very specific times and the culinary expectations are very high. It has for many years been one of the most innovative of McDonald’s markets. When rolling out the new “Made For You” global operational model they took the opportunity to rethink how they managed operations in their restaurants. Using a mixture of Theory Of Constraints, Lean and common sense they redefined how they managed flow. As a result
Throughput Accounting: Maximizing Throughput in Business with Graham Scott. In this episode, hosts Matt, Mike, and Jeff delve into the world of throughput accounting with expert Graham Scott, who shares insights from his extensive experience. Graham explains how throughput accounting differs from traditional accounting methods and emphasizes its practical applications in improving business efficiency and prioritization. We cover the theory of constraints and its relevance to modern businesses, especially in knowledge work environments.
How to identify bottlenecks in your project portfolio. The key to finding bottlenecks is simple: look for where projects are piling up and progress is stalled. Whether it's a department, a process like final testing, or even a single individual holding things up, identifying the bottleneck is crucial to improving overall productivity. We explore common bottleneck scenarios, including mismatched skills in new product development and how protecting key experts can significantly boost output across the entire organization.
An exclusive interview with Jeff Cox, the co-author of best-selling business novel: "The Goal" with dr Eliyahu Goldratt. This famous book is about "The Theory of Constraints". Watch this video to find out how this wonderful book came to life.
Unleashing Potential: Actionable Insights from Goldratt's Theory of Constraints In a world obsessed with optimisations, costs, and efficiency, Eliyahu M. Goldratt's Theory of Constraints (TOC) offers a refreshingly holistic approach to performance. Of course, to paraphrase Deming's First Theorem "Nobody gives a hoot about performance". This post explores key concepts from TOC and how they…
To think about ‘What for?’ is fascinating, and not easy.
Handled correctly, this question has a huge potential for developing individuals and businesses. In this book I look into various aspects of the question ‘What for?’ and present my latest development – a new logical tool called the Branch Three What fors. The purpose of this logical tool is to ensure that effort and capacity spent for doing an action will bring expected results.
The book presents two applications of the Branch 3 What Fors – for checking a suggested action and for developing a solution from scratch – and will take you through detailed explanations and examples. It is a true practical guide how to bring results.
The Goal: A Process of Ongoing Improvements, by Eliyahu Goldratt An exposition of the science of manufacturing written in the guise of the novel, the book encourages companies to identify the biggest constraints in their operations and then structure their organizations to get the most out of those constraints. The Goal was a bible for Jeff Wilke and the team that fixed Amazon’s fulfillment network.
In this short video, Philip Marris explains the Theory of Constraints' 5 Focusing Steps, a framework conceptualised by Eliyahu Goldratt in his book, The Goal, published in 1987. Rather than diluting your improvement efforts, these steps will guide you to concentrate on key areas for enhancing the performance of your whole system:
1) IDENTIFY the system's constraint(s) 2) Decide how to EXPLOIT the system's constraint, 3) SUBORDINATE everything else to the decision above 4) ELEVATE the system's constraint, 5) WARNING! If in the previous steps a constraint has been eliminated, go back to step 1.
At the end of 2023, my squad started its most important project. I assumed the project leadership role, organizing the project, coordinating the meetings, the release process, etc. [...] However, I always felt that I was holding the team back and being a bottleneck in the whole team. [...] I couldn't understand how being a bottleneck wasn't bad, and then he introduced me the theory of constraints. In the end, he recommended a book by Eliyahu M. Goldratt called The Goal: A Process of Ongoing Improvement. Hence, I want to share what I took from it here.
In 1982, I was chairman and a major shareholder of a company ranked by Inc. Magazine as the sixth fastest growing company in the United States. And I was extremely frustrated. Many dozens of clients had bought our production scheduling software and, guided by our associated education, had successfully implemented it. I was frustrated that we didn’t have thousands of such clients. No, I don’t think that I was greedy or overly ambitious. I had very good reasons to expect that every plant would embrace our package with open arms. ...
[2019 conference but only just put on line in June 2021]
The combination of Critical Chain Project Management and the Theory Of Constraints’ 5 focusing steps enable extraordinary results to be obtained in an unbelievably short time. Capacity constraints in project portfolios can be identified immediately (Step 1) and exploited (Step 2) so as to instantaneously produce 2 or 3 times more per week. CCPM can simultaneously put all projects under control, provide excellent visibility, reduce project durations by over 40%...and finish nearly all projects on time. Several recent case studies will be used to provide practical examples. If you think all projects are doomed to be painful semi-failures, think again. If you are looking to boost your growth you need to boost your project performance, this conference will explain how easy this could be.
A 10 minute Question & Answer session recording is also available.
From the Desk of Clarke Ching, Chief Detective Instructor
My friend, you're about to learn something remarkable—something that will change how you see the world forever.
I could share this wisdom with you through hefty textbooks and complex theories, as others have done before. But instead, let me tell you a story. A simple story about a teenager who saved a cinema. In just one hour together, you'll discover what took me decades to learn. And the skills can be used in any modern workplace. ...
Quickly identify system constraints using Intuiflow’s system load graph and process mining tools to improve your manufacturing flows. Stay tuned for more!
Eli Schragenheim, dedicated to making Theory of Constraints (#TOC) solutions accessible to SMEs all over the world, announces 4 KEY INSIGHTS for substantial improvement of any ERP system. He discuses what features an ERP must have in order to ensure commitments for the customers to be fulfilled on time and in full. Key insights:
1. Only very few resources, usually just one, truly limits the total output of Operations
2. Introducing visible buffers into every plan
3. Monitoring the state of the buffers creates an effective priority scheme
4. Monitoring the Planned-Load of the weakest link
The photograph shows a group of 4 representatives from Mazda yesterday, receiving an award [the 2016] TOCICO conference in Virginia, USA. During his keynote presentation, the chairman of the Mazda Motor Corporation board, Seita Kanai, spoke about Mazda's history, and explained the vital role CCPM played in their recent success. They have used CCPM to manage the development of all their engines and models, since 2010. These massively complex projects were delivered using more than 30% less resource, and in over 30% less time than they would have taken prior to using CCPM. It isn't everyday that the chairman and three senior executives of a £23 billion company travel 11,000 km, just to get an award - not unless it really means something to them.
In this video, we explore how Royal Enfield has transformed its spare parts management system to enhance customer experience and maintain its market dominance. Royal Enfield has consistently focused on delivering the pure motorcycling experience. Discover how the brand's focus on how the introduction of the Replenishment Model has revolutionized its supply chain, reduced inventory complexities, and improved parts availability.
In this video Philip Marris introduces the first 2 of the 8 rules of flow in projects according to Efrat Goldratt-Ashlag: Rule #1: Eliminate bad multitasking, reduce your WIP Rule #2: (Full Kit) If you don't want to get stuck, verify full kit before you get going These rules are illustrated with examples from missions carried out by the Marris Consulting teams.
Rami Goldratt, CEO of the Goldratt Consulting Group, provides the practical view of the pillars of TOC, explaining how these guidelines enable individual
Being an efficient project manager is crucial for the success of startup projects. Leading a project to success with limited resources and constantly changing variables is very challenging [...] In this article, we explore 6 uncommon project management concepts so that they can be used as a starting point for further research if any of the techniques fit your project management needs and circumstances. 1. Theory of Constraints (TOC) The Theory of Constraints (TOC) is a methodology that...
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