Theory of Constraints Handbook - James Cox Iii [698]
References
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Sullivan, T. T., Reid, R. A. and Cartier, B. 2007. TOCICO Dictionary. http://www.tocico.org/?page=dictionary
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About the Author
Since 1986, AGI-Goldratt Institute has enabled organizations to better align the way they operate with what they are trying to achieve—strategic bottom-line results.
AGI is the birthplace of constraint-based techniques and solutions for business success.
Many organizations and consultants trace their roots back to AGI not only for TOC, but also for how TOC integrates with other improvement methods.
AGI provides its clients with rapid, bottom-line results with what it calls VELOCITY—a powerful business approach combining speed with direction. VELOCITY consists of three pillars: TOC, the system architecture; TOCLSS, the focused improvement process; and SDAIS, the deployment framework.
SDAIS (Strategy-Design-Activate-Improve-Sustain) begins with creating and then executing the strategic roadmap to ensure business processes are designed and aligned to achieve the strategy. Oncedesigned, the business processes are activated to allow the organization to operate in a stable, predictable manner with less investment and organizational churn.
Once stable, focused system improvements are applied to increase sustainable bottom line results. Execution Management tools and transfer of knowledge enable each aspect of SDAIS and serve as the foundation for self-sufficiency and sustainment.
AGI has expertise in TOC, TOCLSS, and SDAIS, with years of experience adapting each of these elements to meet the unique needs of its clients, regardless of size or industry.
AGI excels at leading organizations through successful business transformations by providing business assessment, implementation support, execution management tools, training, and mentoring.
We are motivated by making the complex manageable and enabling our clients’ self-sustaining success.
CHAPTER 37
Using TOC in Complex Systems
John Covington
Introduction
The purpose of this chapter is to give the reader some ideas on how to use TOC thinking to address and improve performance of complex organizational systems.
What is a complex system? Complexity is in the eyes of who is looking at the issue and their perception. What appears to be complex to one person might appear simple to another. In order to be an effective problem solver you must be able reduce any system down to its simplest components, which may mean redefining the system. I spent a lot of my industrial career working in chemical plants. There are thousands of issues in a large continuous flow process facility—computer controls, raw material variability, operator training, sludge buildup inside a heat exchanger, hundreds of control valves, wear and tear on equipment,