Theory Of Constraints (TOC): How To Prepare Your Company To Embrace Throughput Improvements
Copyright APICS - The Educational Society for Resource Management. Used by permission.
Many of you have read The Goal and the other subsequent novels written by Eli Goldratt. Most who have read The Goal believe the concepts to be common sense principles and mimic their own intuition on how to improve the throughput of their manufacturing facilities.
Over the years that Goldratt has been exposing the theory of constraints (TOC) and its application to the manufacturing process, manysoftware companies have been created that developed solutions around the TOC. Billions of dollars have been spent by the industrial sector in an attempt to capture the throughput improvements and return on investment (ROI) offered by Goldratt and the solutions providers, but very few have captured the ROI that they had hoped.
The "goal" of this presentation is to provide the backdrop for why so few have succeeded in capturing the throughput improvements and how to avoid the pitfalls. The single largest contributor to not attaining throughput improvements is senior engagement acceptance of new metrics to manage the business. This presentation will prepare you to eliminate that pitfall and to capture the mindset of your senior level management to accepting the TOC principles and measurements.
ABOUT THE AUTHOR
Charlie Allieri has 14 years of experience helping companies in the industrial sector enhance their operations by applying technology and business process services. He was first trained in Dr. Goldratt's Theory of Constraints (TOC) more than seven years ago while marketing constraint-based planning solutions for i2 Technologies.