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THE THINKING PROCESS (TP) The thinking processes are generic tools to help people walk through a buy-in process. They are also useful tools for any kind of human interactions. The buy-in process has the following steps (see Levels Of Resistance ): # Gain agreement on the problem # Gain agreement on the direction for a solution # Gain agreement that the solution solves the problem # Agree to overcome any potential negative ramifications # Agree to overcome any obstacles to implementation The Thinking Process , as codified by Goldratt and others:
Some observers note that these processes are not fundamentally very different from some other management change models such as PDCA "Plan-Do-Check-Act" (which is quite often now displayed as PDSA for Plan-Do-Study-Act as 'checking' merely indicates it's been looked at where 'studying' fosters a proactive approach) or "Survey-Assess-Decide-Implement-Evaluate", but the way they can be used is clearer and more straightforward, more on this can be seen on Goldratt's Theory of Constraints - A Systems Approach to Continuous Improvement by William Dettmer ISBN 0-87389-370-0. THROUGHPUT ACCOUNTING APPLICATION-SPECIFIC TOC SOLUTIONS Operations Within manufacturing operations and Operations Management , the solution seeks to pull materials through the system, rather than push them into the system.
A fundamental principle of "Synchronous Manufacturing" can be illustrated by the example of an auditorium with one exit. If the people are instructed to leave the auditorium, the rate at which people can walk through the door is the same, regardless of the number of people in the auditorium. The particulars of the doorway set the rate (#/time) at which people can exit. The capacity of a factory to produce a certain number of products in a certain period of time is likened to the number of people who can walk through the doorway in a given period of time. The inventory of materials in process is like the number of people in the auditorium. The realization that the inventory on hand is not simply related to the factory output is one of the most basic and important underpinnings of SM. For reference, you can read Chapter 37 of "The Goal", where DBR is summarized. Supply Chain / Logistics The solution for supply chain is to move to a replenishment model, rather than a forecast model.
Finance and Accounting Use Throughput Accounting with T, OE, and I to make decisions. Project Management
Marketing and Sales While originally focused on manufacturing and logistics, TOC has expanded lately into sales management. First data shows that the sales system is massively constrained and TOC offers significant opportunity to increase enterprise throughput = sales results
THE SIX NECESSARY AND SUFFICIENT QUESTIONS RELATING TO TECHNOLOGY # What is the real power of the technology? # What limitation does it diminish? # What old rules helped accommodate the limitation? # What are the new rules that should be used now? # In light of the change in rules, what changes are required to the technology? # How to cause the change (the new win/win business model)? DEVELOPMENT AND PRACTICE TOC has been initiated by Eliyahu M. Goldratt and is being actively developed by a loosely coupled community of practitioners around the world. TOC is sometimes referred to as "Constraint Management". The TOC International Certification Organization maintains a variety of TOC certifications. SEE ALSO
REFERENCES Novels
Theory of Constraints
Manufacturing
Strategy
Accounting and Finance
Project Management
Continuous Improvement and the Thinking Processes
Sales and Marketing
EXTERNAL LINKS Goldratt and TOC "official" links
TOC Consultants and Aficionados
TOC-related software
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