Theory of Constraints by Dr. Goldrat

http://en.wikipedia.org/wiki/Theory_of_constraints

"After all is said and done, all is said and little is done."

What if it IS being done??

Hi !

I want to discuss failures of TOC and not TOC.

Jayant

The Wikipaedia link is there to define TOC to the casual reader.

Hi !

I am deep into TOC but I want to know cases where TOC has failed. Dr. Goldrats cases look like staged dramas. I want to know the other sides of the stories.

Regds

Jayant

Asking about cases where TOC has failed is like asking about places where gravity has failed. Maybe the question is about situations in which the solution elements were poorly designed or in which the assumptions about the constraint were misunderstood. And then there is a third category of poor implementation of a good solution in which the leaders were not involved and the managers attempting to make the change were merely going through the motions without truly understanding which parts of the solution were getting the most out of the constraint (exploiting) or giving the exploit step the priority in all situaions (subordinating). People can take a simple solution and make it so complex that it ceases to be the solution any longer, making it appear as if increasing throughput through the constraint did not work. The bottom line is that the concept and solution set is so simple that it can not fail if the assumptions are fully understod and the solution is implemented by someone who understands how to apply the five focusing steps to the system which needs more throughput in order to meet some specific goal.

You're right; it is about how the solution is attempted. There were many early attempts to overcome gravity by building flying machines until finally the Wright brothers started a trend along the right solution to overcome gravity. Similarly D-B-R or Critical Chain when applied correctly will work to improve performance. People going through the motions without understanding all of the boundary conditions are not gauranteed success. Only those whose assumptions are in line with reality can be assured their effort will not fail. Just keep the application of the solution as simple as you can, check your assumptions, and it has to improve the situation.

Hi!

It is a funny comparison. Gravity is a universal truth and not man created. There are contradictions in your message. If the theory is simple then simple people should be able to implement it and it should not fail due to implementation. Secondly implementation is a part of the system. It should take care of that too. It is a system or theory made by man for man......

I have noticed it works great where the things are in mess. But in a well managed company it is very hard to improve to the claimed extents. I have also seen in these companies, quality is generally side tracked for thruput..... There is no inbuilt quality systems in the theory. Lastly I have also seen it hardly works in a B2B environment. It works ok with companies which sell their products directly to the customers. As a businessman, I need to look at the P & L statement and I have seen it has hardly changed.

I might be wrong but I think every one knows about the positive side and we should also know the other side if it exists. It cannot be a perfect theory.....

Regds,

Jayant

Hi Jayant,

First you are wrong.

You are mixing simple and easy as same. Simple means that cause effect relationship is easily understood that it needs no explanation.

Let me give you another example. You know that exercising regularly is good for our health. This does not require any proof. Yet most of us do not taken even a regular walk.

I have seen companies that have increased their profits continuously for 5 years +.

You could check it on www.goldrattindia.com and look at the voice of customer (Hari Machines)

Dear Jayant

I have practised TOC for 3 years. I was a TOC consultant working for Satyam and was involved in lot of live projects.I also close to people in the TOC world.

You should have asked the question as "Successful case studies of TOC" as there are too many failures.

You may contact me to know the reason which i would not like to share in the common forum

Anupam

Hi Guest,

I am interested in what you say that there are many failures with TOC. I would be interested in reading about some of these failures so that we don't fall in to the same trap.

If you would sign in as a member rather than a guest then those who are interested could get in touch with you.

You say you practised TOC for 3 years. Why did you stop using it and what are you using now to improve production and quality?

I would like to speak to you more about what you posted...if you're willing, please contact me!

I have read all of Dr. Golddrat's books and it all seems like a no brainer. Eliminate the bottle necks and you will increase production. The problem is getting all departments to buy in to it.

Does anyone have any experience in applying it in engineering, in the sales department or in the front office? I worked for a company where the plant manager was trying to introduce it and my boss, (the engineering manager) felt it was just for production and that it didn't affect us.

We have implemented a DBR system in February of this year in our Engineering department. We produce heat trace drawings based on client piping iso's. Here are the results so far:

90% reduction in WIP

90% reduction in cycle times

63% increase in throughput

Its been a struggle to implement in a human based process, but everyone sees the benefits and are working through the remaining issues/opportunities.

Hi Stan Yes I have experience in successfully implementing TOC in over 35 companies - mainly manufacturing including: production, supply chain distribution & logistics, engineering, sales and more. Over $1bn in total top line sales. A large reason for success is gaining consensus. You would need to learn how to do this. Note: Learning TOC is not the same as implementing TOC. In my 10 years as a internationally certified TOC practitioner I have heard of the occasional failure and have directly experienced 2. The two failures I have experienced have not anything to do with TOC. It is about choosing your clients carefully verifying beforehand that they will exercise the necessary leadership and authority to get on with the implementation in the shortest possible time and having the consensus in the right places. The fault lies with us the implementers not preparing the client. I also understand that many try to implement by just reading a few books. Certainly we can all get some wins (many do) but I would hesitate to suggest they would build an ongoing robust solution without getting into TOC a bit deeper. Re: Earlier comment that TOC is like gravity - Is correct. TOC is based in the principles of physics. It is actually a "law" of the nature of systems. Any system has inputs and outputs (and feedback) and a level of variability and uncertainty in the processes to convert in inputs to outputs assuming those processes are dependent. The rate of output of the system is determined by the most overloaded resource (process, operation etc) relative to the demand placed upon it. I.e. the constraint. I don't know of any system on planet earth that is infinite and therefore there must be a constraint. Be aware that in human system such as business a constraint can be non-physical such as a policy, measure or behaviour (eg. local efficiency everywhere) which can seriously limit the ability of the business to maximise throughput. Hope this helps a little. regards Andrew

Hi Andrew - I am so thoroughly convinced with your reply that I thought I will leave a reply, which generally we dont. I came across this page because I had similar Q in mind - ie failures of TOC. And your reply is so convincing that it reminds me of the conviction with which Goldratt himself used to speak(I am a new entrant in the TOC and I have only heard/seen Goldratt in various videos) . I have a Q for you. What all things should I keep in mind to become a good TOC consultant considering that my baptism in TOC is thanks to a childhood friend, who is a TOC consultant for few years and I have read several books (several others still to read), watched videos, SLPs of Goldratt etc and am fully convinced of his ideas. In fact I am excited. And I am not a fresh graduate or a young executive. I have about 23 years of varied work experience, majority of which is in Software Development. Asking this Q specifically because of one comment that you made - That people become TOC consultant just by reading books.

Thanks much, Neeraj