Theory of Constraints Handbook - James Cox Iii [342]
However, knowing where to focus is not sufficient. Top management must ensure that simple holistic rules for planning and execution (according to TOC’s known logistical solutions) are in place and that obstacles/excuses for not starting the desired actions (e.g., implementing TOC planning and execution rules) or not stopping the undesired actions (that cause waste, local optima disharmony within organizations) are systematically removed. In addition, they must ensure that everyone has the means (systems) and ability (know-what, know-how, and know-why) for their required contribution, but also recognize contribution and success (and when convinced the means and ability were provided, hold those still not contributing accountable).
A fast (and reliable) feedback mechanism is required to continuously reduce the time to detect and time to correct for erroneous assumptions and for changing environmental conditions, especially for changes in the system constraint.
A POOGI mechanism such as TOC’s BM should be implemented in each of the main functions to guide where further process improvement or capacity elevation is required most to maintain the balance between supply and demand.
Finally, don’t blink. Persevere in the quest to achieve growth and stability despite all the corporate and individual idiosyncrasies.
References
Ackoff, R. L. 2006. “Why few organizations adopt systems thinking,” Systems Research and Behavioural Science. 23:705–708.
Barnard, A. 2003. New developments and innovations in the Theory of Constraints Thinking processes, Paper presented at the TOCICO Conference in Cambridge, UK (October).
Barnard, A. 2008. Using a simplified Theory of Constraints approach to achieve more with less in less time within the public sector: A case study from Africa, Sun City, South Africa: SAPICS Conference Proceedings (June 29–July 2).
Barnard, A. 2009. How to identify and unlock inherent potential within organizations and individuals using a systems approach. PhD dissertation, Da Vinci Institute, Johannesburg, South Africa.
Barnard A., Rajaniemi, K., and Nordstrom, F. 2009. Achieving fast and reliable deliveries with a robust TOC solution simple enough to be supported by standard ERP systems. Sun City, South Africa: SAPICS Conference Proceedings (July 12–15).
Collins, J. 2006. Why Business Thinking Is Not the Answer. Good to Great and the Social Sectors: A Monograph to Accompany Good to Great. New York: HarperCollins.
Deutschman, A. 2007. Change or Die: The Three Keys to Change at Work and in Life. New York: Harper Business.
Funcke-Bartz, M. 2006. “Sensible constraint management,” Academic Press Plant Systematics. 78–79.
Goldratt, E. M. 1984. The Goal. Croton-on-Hudson, NY: North River Press.
Goldratt, E. M. 1990. What Is This Thing Called Theory of Constraints and How Should It Be Implemented? Croton-on-Hudson, NY: North River Press.
Goldratt, E. M. 1999a. Goldratt Satellite Program Sessions 1–8. (Video series: 8 DVDs) Broadcast from Brummen, The Netherlands: Goldratt Satellite Program.
Goldratt, E. M. 1999b. POOGI Forum Letters, www.toc-goldratt.com/index.phpcont=137.
Goldratt, E. M. 2008. The Choice. Great Barrington, MA: North River Press.
Goldratt, E. M., Goldratt, R. A., and Abramov, E. 2002. “Strategy & tactics,” unpublished article.
Immelman, R. 2003. Great Boss, Dead Boss. Gurnee, IL: Stewart Philip International.
Kendall G. 2001. “TOC strategy: The 4 × 4 way,” TOC Review April:28–31.
About the Authors
Dr. Alan Barnard is the CEO of Goldratt Research Labs, a director of Goldratt Group (Africa), Chairman of Realization Africa and acts as project auditor on a number of large TOC projects around the world. One of Alan’s passions in life is to apply the same techniques of identifying and unlocking inherent potential within businesses to individuals (he is the lead facilitators of the annual Odyssey Program)