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The Webinar
Published in Bob Sproull, Matt Hutcheson, The New Beginning, 2021
“Dr. Eliyahu Goldratt developed what he referred to as the Theory of Constraints. Goldratt’s Theory of Constraints, as presented by Dr. Goldratt, contains five steps as follows: Step 1: Identify the system constraint.Step 2: Decide how to exploit the system constraint.Step 3: Subordinate everything else to the system constraint.Step 4: If necessary, elevate the system constraint.Step 5: Return to Step 1 to identify the new system constraint.”
The Logical Thinking Process
Published in ByBob Sproull, The Focus and Leverage Improvement Book, 2018
The Theory of Constraints is systemic in nature and strives to identify those few constraints that limit the organization’s success, in terms of moving in the direction of its goal. It’s important to keep in mind that most organizations function as systems, rather than as just processes. Goldratt introduced his 5 Focusing Steps, plus what he calls a logical thinking process. Goldratt then taught us that good managers must answer five important questions to be successful (Figure 5.1): 1.Why change?2.What to change?3.What to change to?4.How to cause the change to happen?5.How to sustain?
Foundations of Lean
Published in Steven C. Bell, Michael A. Orzen, Lean IT, 2010
Steven C. Bell, Michael A. Orzen
The 1980s were a time of competing methodologies as organizations experimented with various methods of continuous improvement. Six Sigma was introduced during this time and quickly became the poster child of process improvement, with successes at Motorola, Allied Signal, GE, and many other companies. Six Sigma applied statistical rigor to improvement processes and emphasized the quantification of results in terms of dollar savings. With the publication of The Goal by Eli Goldratt in 1992,1 the Theory of Constraints also became popular, demonstrating that bottlenecks could be exploited to pace production, focus improvement efforts, and significantly boost throughput. Then in 1990, The Machine That Changed the World was published by Womack, Jones, and Roos at MIT.2 This book examined the Toyota Production System and introduced the term Lean. (For a detailed discussion of how Six Sigma and Lean can effectively work together, see Appendix B.)
SMEs strategy and scale constraints impact on agri-food supply chain collaboration and firm performance
Published in Production Planning & Control, 2021
A. Zaridis, I. Vlachos, M. Bourlakis
There is scarce empirical evidence on the direct effect of scale constraints’ impact upon supply chain collaboration and, in turn, SME performance. Dania, Xing, and Amer (2018) reviewed the literature on collaboration behaviour towards sustainable agri-food supply chains and suggest that collaboration gives smallholders such as farmers and micro agri-food cooperatives access to high-value and profitable markets, and results in reduced risks and costs. Matopoulos et al. (2007) studied the agri-food supply chain in Greece, finding that constraints arise due to the nature of the industry's products, and the specific structure of the sector. Holweg et al. (2005) suggest that supply chain synchronisation can control the risk for constrained components or materials, i.e. by monitoring items with long lead times and warning at an early stage of future supply constraints. Rezaei, Ortt, and Trott (2015) found that SMEs gain only in the area of R&D and that partnerships have a significant positive effect on overall firm performance. Simatupang, Wright, and Sridharan (2004) applied the theory of constraints to optimise supply chain profitability and suggest that a collaborative replenishment policy and collaborative performance metrics relax the constraints and improve profitability.
Theory of constraints: review and bibliometric analysis
Published in International Journal of Production Research, 2019
Lucas Martins Ikeziri, Fernando Bernardi de Souza, Mahesh C. Gupta, Paula de Camargo Fiorini
Conceived by Israeli physicist Dr. Eliyahu Moshe Goldratt, the Theory of Constraints (TOC) is based on the application in organisations of experimental science concepts. Its roots go back to the 70s, when Goldratt and his team developed a finite programming software for the optimisation of production systems, called Optimized Production Technology (OPT) (Cox and Schleier 2010). In 1984, the book The Goal was published, which presented a series of concepts focused on explaining certain phenomena that govern manufacturing and proposed a process of continuous improvement and decision-making support for organisations (Goldratt and Cox 1984). Since then, its application has broadened out into various areas, such as production, supply chain, projects, accounting, distribution, and retail. Thus, the primary focus of TOC has moved on from factory bottlenecks, production planning, control, and scheduling techniques to become a global management philosophy focused on leveraging performance and offering decisive competitive advantages to organisations (de Souza and Pires 2010; Goldratt 1990a). Employing some frameworks for theory building, Naor, Bernardes, and Coman (2013, 551) concluded that TOC is not just a formal operations management theory but also a good one, because:(1) it explains phenomena in many domains (generalisable), (2) its concepts, relationships and logic are relatively simple (parsimonious), (3) its innovative relationships and logic are fertile for hypotheses development, (4) it is internally consistent, (5) its key propositions are not self-verifying but are conceptually subject to disconfirmation, and (6) its theoretical statements have progressed towards higher levels of abstraction.
Modelling and analysis of semiconductor supply chains
Published in International Journal of Production Research, 2018
Lars Mönch, Chen-Fu Chien, Stéphane Dauzère-Pérès, Hans Ehm, John W. Fowler
The paper by Gupta and Anderson demonstrates that the theory of constraints (TOC)-based measures, throughput and inventory dollar-days, induce autonomous supply chain links to function as a synergistic whole and improve the performance of the entire supply network significantly. They model a supply network of a well-known TOC case study using discrete event simulation and discuss managerial implications of these measures by considering a set of scenarios.