home Ideas Theory of Constraints is the key to business process improvement. "Business tools for a manufacturing enterprise

Theory of Constraints is the key to business process improvement. "Business tools for a manufacturing enterprise

The Theory of Constraints (TOC) is a popular management concept developed in the 1980s. doctor. It proposes to concentrate organizational resources on the elimination of constraints (conflicts) that prevent the company from realizing its full potential.

Goldratt's reasoning method forms the basis of the theory of constraints and allows you to successfully resolve many contradictions: between deadlines and quality, cost and costs, required productivity and available resources.

William Detmer's book is practical guide to action, describing in detail the transformation process at any level of the organization. It can help you identify what needs to change in your organization, how to identify open and hidden problems using logic trees, and how to fix these problems with breakthrough solutions.

William Detmer. Goldratt's Theory of Constraints: A systematic approach to continuous improvement. - M.: Alpina Publisher, 2012 - 443 p.

Do at least once what no one believes in, and you will no longer be worried about other people's opinions about the unattainability of any heights.
James Cook

Download brief summary in the format

Modern companies are systems capable of self-organization. Goldratt's Theory of Constraints is a philosophy of system improvement. No matter how you improve existing processes, only efforts to strengthen the weak link will lead to noticeable improvements. A weak link is a limitation of the system, and TOC is a methodology developed to manage such limitations.

Chapter 1 Introduction to the Theory of Constraints

Deep knowledge must come into the system from outside and by invitation only.
E. Deming

William Edwards Deming argued that true quality improvement is impossible without in-depth knowledge. According to Deming, deep knowledge is based on:

understanding the theory of knowledge;
knowledge of variability;
understanding psychology;
understanding of the system.

This book describes cognitive processes that bring us to the heart of the theory of knowledge: how we know what we want to know.

Why do we create systems? In the very broad sense- to reach the goal. Who determines what this goal is? Obviously - the owners of the system. The essence of management is to be able to recognize the need for change, and then initiate, direct and control it, eliminating the problems that arise along the way. Otherwise, only nannies would be needed, not managers.

In the most complex systems, the responsibility for achieving the goals of the owners lies with the leaders of the system - from CEO to lower level manager. One of the hallmarks of a successful manager is that he works less with the present and more with the future. In other words, it focuses on "preventing fire" rather than "fighting fire." If you are more focused on current issues than on the organization's development strategy, i.e. more reactive than proactive, you will always be behind the changes taking place around you.

The Theory of Constraints is based on the rather bold assumption that managers and/or organizations know what their true purpose is, what goal they are trying to achieve.

Middle managers care about “has this been done before” and “what will people think”. For the good, it is important that the problem is solved.

A goal can be defined as a result towards which efforts are directed. A necessary condition is something without which the achievement of a result is impossible. Goldratt believes that in reality these concepts are interdependent. If so, does it matter what you call the target and what necessary condition? Goldratt thinks not. He argues that due to this interdependence, whatever factor you call the goal, the rest will inevitably become the conditions for achieving it.

The main difference between humans and rats is that rats learn from experience.
B.F. Skinner

Goldratt compares systems to chains or a collection of chains (Figure 1). Suppose you constantly increase the chain tension. Eventually the chain will break. And where will the break occur? Where is the weakest link. And how many such links can there be in a chain? One - and only one. After all, the chain will break at one point, and this weakest link is the limit that determines the strength of the entire chain.

Rice. 1. System: chain

Restrictions and restrictions. And how many links can there be that do not determine the strength of the chain, in other words, non-limiting elements? Yes, as much as you like, all other links are not a limitation. Suppose we want to strengthen the chain (improve the system). Where would it be most logical to focus your efforts? On the weakest link! Is it worth reinforcing something else, something that is not a limitation? Efforts made on the constraints will not bring about immediate and noticeable improvements in the performance of the system.

CBT is essentially about transformation. If you follow its principles and approaches, you will be able to answer three main management questions:

what to change? (what is the limitation?);
what to change? (what to do with the restriction?);
how to make changes? (how to get rid of the restriction?).

Remember that these are system issues, not process ones. Of course, the answers to them will affect individual processes, but they are formulated in order to understand where to direct efforts in order to improve the system as a whole. Processes do matter, but ultimately our organizations fail or succeed as systems.

TOC and TQM are not mutually exclusive. Rather, TOC fills in the gaps that TQM has never paid due attention to: where to focus improvement efforts to achieve the maximum and fastest result.

Improvement is not required. Survival is voluntary.
E. Deming

TOC principles:

The Five Guiding Steps of TOC

Find the limitation of the system.
Relax the influence of the system constraint.
Concentrate all efforts on the system limiter.
Remove restriction.
Return to the first step, remembering the inertia of thinking.

How do we know if the removal of the constraint has had a positive effect on the entire system? How to measure the impact of local decisions on the system as a whole? Goldratt has developed a very method by which one can determine the effectiveness of an individual management decision in terms of achieving the goal of the entire system. Each action is evaluated according to the degree of influence on three parameters: cash flow performance, investments, operating expenses(Fig. 2).

Rice. 2. Definitions of performance, investment and operating costs

Cash flow performance(Throughput, T) is the rate at which the system as a whole generates revenue from sales. You can also look at cash flow performance in another way - as "the difference between the money coming into the organization as a result of sales and the cost of sales in terms of variable costs over a certain period of time."

Investments(Inventory, I) is the money that the system invests in facilities for processing and sale, or all the money held in this moment in system. These are: inventories (TMZ), raw materials, work in progress, purchased components and other material items that are supposed to be eventually sold. However, investments also include investments in equipment, premises. In the end, aging equipment and space will also be sold, even at the price of scrap. With the depreciation of these assets, their value, minus depreciation, remains in the "investments" section, while the depreciation charges themselves are added to operating expenses.

Operating expenses(Operational Expense, OE) is all the money the system must spend to turn the investment into cash flow performance (cash flow). In other words, it is money leaving the system. Examples are work force, Communal expenses, expendable materials etc. Asset depreciation is also included in operating expenses, since it is the cost of tangible assets that the system spends to maintain a certain level of performance.

As you consider what action to take, ask yourself:

Will it improve cash flow performance? If so, how?
Will it reduce investment? If so, how?
Will it reduce operating costs? If so, how?

If the answer to all questions is yes, implement this solution and be sure that it will benefit the system as a whole. If in doubt, please review it. The bottom line is that if the idea doesn't lead to higher cash flow productivity, you're wasting your time and possibly money.

The potential for increasing T is always much higher than the potential for reducing I and OE. Therefore, it would be wise to first focus on the part of the system on which the increase in T depends, and only then deal with the reduction of I and OE.

The Theory of Constraints is much more than just a theory. Actually this paradigm, a pattern or model that includes not only concepts that guide recommendations, prescriptions, but also its own methods and tools. We examined the concepts of theory (systems as chains; T, I and OE) and its principles (cause and effect, local optima versus system ones, etc.), studied prescriptions (five guiding steps; what to change, what to change, how to implement changes). To complete the picture, you need to know methods and tools.

Methods:"drum-buffer-rope" ("Drum - Buffer - Rope"); “ ” is a direct result of using the concepts of “cash flow performance”, “investments” and “operating costs” as tools for making management decisions - as opposed to traditional cost accounting. TOC management accounting fundamentally refutes the generally accepted concept of allocating fixed costs per unit of product or service. While the totals remain essentially the same, the absence of shared fixed costs entails very different management decisions, which can influence pricing and marketing strategy and provide organizations with competitive advantage. In other words, TOC management accounting is a philosophy that, unlike standard cost accounting, reinforces good management decisions.

Instruments, developed by Goldratt for TOC, are built according to the laws of logic. They are represented by five types of logical trees and logical rules that determine their construction. These are the current reality tree, the Thundercloud conflict resolution diagram, the future reality tree, the transition tree, the transformation plan, the rules are called Logical Construction Testing Criteria. The subject of this book is the description of the above logical trees, rules and recommendations for their use.

Current reality tree(DTR) is a problem analysis tool (Figure 3). It can be used to study the cause-and-effect relationships that determine the current situation. The TDR starts with the existing adverse events in the system and helps to get to the root cause, or one key problem that caused all the adverse events that we encountered. Key problem usually this is the limitation that we try to find using the tactics of five guiding steps. DTR tells us what to reorganize - it reveals the smallest, simplest change in the system that will give the greatest positive effect.

Rice. 3. Current reality tree

Conflict Resolution Diagram(DRC) is a tool developed by Goldratt to remove the hidden conflicts that usually underlie long-standing “chronic” problems (Fig. 4). The DRC is based on the assumption that most problems are caused by some kind of confrontation or conflict that prevents the problem from being solved in the usual way; otherwise it would have been resolved long ago. The DRC can also serve as a "creative engine", allowing us to generate new ideas that can provide a "breakthrough" to old burning issues.

Rice. 4. Thundercloud Conflict Resolution Diagram

Future reality tree(DBR) serves two purposes: it allows us to make sure that the action we are about to take will actually lead to desired results; this diagram makes it possible to determine what negative consequences the action we have planned can cause. Confirming the effectiveness of the new configuration of our system, this tool answers the question "what to change to?". The DBR chart can also be an invaluable strategic planning tool.

Once the decision on the course of action has been made, transition tree(DP) helps implement this solution. It defines what can hinder our actions and how best to overcome these obstacles. It also allows you to set the sequence of actions necessary to achieve the goal. This diagram half answers the question "how to make changes?".

The last of the five logical tools - change plan- gives step by step instructions for the implementation of solutions. In essence, this is a detailed roadmap to achieve our goal, complementing the answer to the question “how to make changes?”.

Criteria for checking logical constructions is a "logical link" that unites all the above diagrams. In essence, these are instructions that govern the creation and study of logical constructions. To be considered logically sound, a diagram must pass the following checks:

clarity; the presence of a statement; the presence of a causal relationship;
the sufficiency of the given reason; availability check alternative cause;
no substitution of cause by effect; search for a verification investigation;
no tautology.

The remaining 7 chapters of the book are devoted to detailed description theory (with examples) of diagramming. On the one hand, it is not possible to summarize them briefly (it would be necessary to almost completely rewrite the book). On the other hand, the very procedure for managing thought processes seems to me ambiguous. If the paradigm (philosophy, concepts) of TOC and its methods ( , ) certainly raise the level of the manager, then with regard to tools - thought processes - at least for me, such an opinion did not exist ... Either at first a picture is formed in the head, and "trees ”are needed only to justify it!?.. Is it the trees that are built first, and on their basis there is an “enlightenment”!?.. 🙂

Read the book and draw your own conclusions...

A rigorous mathematical definition for T and its relation to I and OE follows from the balance expression cash flow: CF (Cash Flow, cash flow) = T - OE ± I, where T - OE = NP (Net Profit, net profit). In dynamic form, the same expression has the form: dCF/dt = T – OE – dl/dt, where t is time. It can be read as "the increment in cash flow is equal to the rate of income generation minus operating expenses and the change in the company's tied capital."

The main feature of the methodology is that by making efforts to manage a small number of elements of the system, an effect is achieved that is many times greater than the result of simultaneous influence on all or most of the problem areas of the system at the same time.

History of the Theory of Constraints

A key figure in the creation and popularization of the theory of constraints is Dr. Eliyahu Goldratt. He received a Bachelor of Science in Physics from Tel Aviv University and an MA and PhD from Bar Ilan University. Goldratt later took a job at Creative Output, which developed and marketed Production Technology Optimization software. OTP was the first software to provide capacity planning for production needs. Software and his principles became the basis for the creation of the theory of constraints, which was presented by Goldratt in 1984 in the business novel The Purpose. The Times magazine added it to the "" list.

In the following books, published at intervals of several years (Race, Theory of Constraints, Goal II: It's Not Luck, and others), Eliyahu developed the ideas and principles of TOC laid down by him. Of particular note is the book "Critical Chain", published in 1997, in which Goldratt adapted the concept for the purposes of project management.

And to promote the concept, The Theory of Constraints Institute was founded in 2012, which embodies Goldratt's life goal: "Teaching the world to think."

But Goldratt and the team aren't the only ones whose efforts have made TOC world-famous. Among the early popularizers was Wolfgang Mewes, who produced a series of papers in Germany on the theory of force control and the energy-cybernetic system, which in turn was a development of the bottleneck theory.

What is the Goldratt theory

Theory of Constraints of Systems (TOS) is a management methodology based on the identification and management of a key system constraint for the effectiveness of the system as a whole. One of key concepts- limitations, factors that determine the limit of the system's results.

Depending on the system, restrictions also differ, but in general, three large groups can be distinguished:

power limit— the impossibility of presenting the amount of power required by the system in a specific time frame
market restriction- the number of orders is not enough for the required development of the system. This limitation is usually dealt with by offering better deals to consumers to stimulate sales growth.
time limit— too long system response time to market needs;
paradigm constraint When employees hold beliefs that cause them to act in a certain way, this can affect production to the point of becoming a constraint in itself. An example of such a limitation is the belief that loading the working mechanism to the maximum speaks of the efficiency of the work, even if this leads to. The result is a suboptimal use of resources.
physical limitation- for example, too large a production queue entering a machine that is not able to process such volumes on time
company policy restriction- under the policy in this context is considered the guidance for conducting production process. Examples are rules regarding the minimum lot size that passes through the conveyor, the number of parts to order from a supplier, the volume of products that must be reached before being sent to the next stage of production. If not tracked and controlled, these restrictions can interfere with production flow. Policy constraints are the hardest to detect, you have to analyze their impact on the business as a whole. In addition, the rules are often used by employees for a long time and the inertia of thinking will prevent you from quickly getting rid of the restriction.
sales department limitation— the more complex the sales process, the more factors that can lead to its decline. For example, a lack of sales engineers will result in fewer product demos, which means fewer sales.

Sales engineers are a product specialist who understands all of its technical specifications and nuances. For the rest of it functional responsibilities similar to a sales manager.

Step-by-step implementation of system management through constraints

Five consecutive steps are enough to help focus efforts on what will allow you to quickly reorganize the entire system:

Find System Limit- the questions will help with this: “In which element of the system is the weakest link?” and “What is the nature (physical or organizational) of the found restriction?”.
Relax the influence of the system constraint- for this you need to understand how to squeeze the maximum out of the limiting element without significant additional costs. This will automatically become the answer to the question of how to reduce the negative impact of the limiter on the operation of the entire system.
Focus on limiting the system- at this step comes the turn of system settings for maximum effective work limiting element. Subsequent analysis may reveal that the restriction has ceased to affect the operation of the system, that is, they got rid of it. In this case, you can skip step 4 and go straight to the final one. If the restriction has not disappeared, you will have to continue the sequence.
Remove restriction- they come to this step if the first two were not enough to eliminate the restriction. Within the framework of the stage, reorganization, redistribution of powers, increase in capital, etc. can be carried out. Decisions to remove the restriction involve achieving the goal by any means, which means that in most cases a huge investment will be required. financial resources, time, labor.
Cycle repetition- upon successful removal of the restriction, it is necessary to determine the next element that restrains the 100% operation of the system. The more restrictions you have removed, the more important this stage is, because every change made to the system affects every element of it, including already removed restrictions. Thus, continuous self-improvement and self-examination become important tools of Theory of Constraints.

Drum-buffer-rope method.

Goldratt wrote about the drum-buffer-rope method in one of his first books on TOC -. This production control technique was originally developed to solve the problems of the industrial company described in the Purpose, but later found its way into real life and became a full-fledged technology within the concept of the theory of constraints.

Briefly, the method includes:

"drum"— development of a detailed work schedule for effective use restrictions;
"buffer"- creation of a protective buffer that prevents the possibility of idle restrictions;
"rope"- organization of a mechanism for the timely release of work into production.

Separately, it is worth talking about 3 types of buffers used in DBR:

shipping buffer- to ensure the delivery of orders on time;
constraint buffer- to ensure the operation of the restriction in case of failures in the work schedule;
build buffer- for timely receipt by the assembly shop (located in the production system after the limitation) of the necessary resources for assembly.

In its classical form, the BBK is subject to well-deserved criticism, which leads to the appearance of simplified modifications of the technology.

Let's take a car manufacturing plant as an example. Having a detailed work schedule makes it easier to work with constraints, but at the same time reduces the flexibility of the plant. If the volume of orders increases or new requirements for the assortment appear, the organization is not ready to quickly respond to the changed situation, because this will have to redo the schedule again. And the larger the scale of production, the more variables need to be taken into account.

By the way, the problem of changes in market demand and the difficulty in responding to them was faced by Henry Ford, who in 1913 created the world's first production flow model.

Also taking into account that the concept of "buffer - drum - rope" was developed at the end of the last century, in today's conditions it is not able to take into account all factors.

The following drops from the Drum-Buffer-Rope sphere:

thought processes

Thinking processes in the theory of constraints can be seen as a group of logical tools, with the help of which (one or more) a consistent system of problem solving and change management is formed. Them the main objective Translating an intuitive solution to a problem into a format that can be rationally discussed, challenged, and modified.

Thought processes are also used to overcome layers of resistance to change caused by system limitations:

disagreement with the core of the problem
disagreement with the chosen decision
disagreement with the advantage of the constraint solution over others, and its benefits fear of the risks caused by the implemented solution
fear of insuperable limitation.

To use Theory of Constraints Thinking Processes tools, they must follow one of three global goals, the achievement of which is expressed in the form of answers to questions:

What to change? - diagnostics: assessment of the situation, identification of the main problem or conflict, and the factors that create it / it. Tool - current reality tree
What to change? - development and decision-making: defining a view of the problem and its solution, describing a strategy to achieve the desired state. Tools - Conflict Resolution Diagram, Future Reality Tree
What can be done to implement changes? — planning and team building: development detailed plans and tactics that make it clear what needs to happen and that synchronize the team's efforts to implement the strategy. Tools - transition tree, transformation plan.

Criteria for checking logical constructions

Criteria for checking logical constructions are logical rules that help to distinguish an objective reflection of reality from a subjective one. Without an understanding of the rules, it is impossible to successfully apply the tools of the theory of constraints. Today, there are 8 criteria for checking logical constructions.

With their help, they check, prove or refute the correctness of the built causal and hereditary relationships:

Literature

"Goldratt's Theory of Constraints: A Systematic Approach to Continuous Improvement" by William Detmer

Rethinking Goldratt's TOC in terms of practical application. The main focus is the implementation of the methodology and its individual tools in the activities of the organization. But from a theoretical point of view, there is something to read in the book: it was not for nothing that William worked as a teacher for 8 years in courses on the theory of constraints, project management, general management quality, system analysis and management systems.

"Critical Chain" by Eliyahu Goldratt

The legendary creator of the theory of constraints, in which the concept of TOC is first considered from the point of view of project management. Therefore, The Critical Chain will be especially useful to project managers, at least as an introduction to the origins of the methodology, since the first edition of the book was released in 1997.

"Goal: Business Comis" by Eliyahu Goldratt

Eliyahu's first work, which gave rise to a series of books and publications on the theory of constraints. Despite the fact that it is dated 1984, the business novel is still read with interest. One plot is worth it: Alex Rogo, a project manager, must save a failed factory in 90 days, otherwise it will be closed and hundreds of people will lose their jobs. In addition, the reissue is made in a fashionable comic book format.

"Goldratt and the Theory of Constraints: The Quantum Leap in Management (QuiStainable Business Solutions)" Uwe Techt

The methods and tools of the theory of constraints are analyzed in detail: “drum-buffer-rope”, buffer management, the use of constraints, corporate strategy other. All this is based on real cases.

“Business tools for a manufacturing enterprise. From basics to aerobatics" Steve Novak

The author defends the concept of a combination of several business tools from different methodologies, which are selected individually in each case. In fact, it is a review of a large number of methods and tools, among which are those used in the theory of constraints.

Verdict

The Theory of Constraints proposes to concentrate the resources of the company on the key points - the limitations of the system, which do not allow it to realize its maximum potential.

In production instead restrictions the term "bottleneck" is often used.

Goldratt's TOC considers the process of improvement from a scientific point of view, and implies that each system is a group of interrelated activities, one or more of which is a limitation (s), a kind of "weak link". The methods and tools of Theory of constraints are aimed at its elimination.

“With a smile, I begin to count on my fingers: once, all people are good. Two - every conflict must be resolved. Three - each situation, no matter how complex it may seem at first glance, is in essence very simple. Four - every situation can be greatly improved; even the sky is not the limit. Five - there is always a mutually beneficial solution. Should I keep counting?"

Dr. Eliyahu Goldratt.

Eliyahu Moshe Goldratt(March 31, 1947 - June 11, 2011), was born in Israel to a rabbi. Received bachelor's degrees natural sciences Tel Aviv University, M.Sc. and Ph.D. from Bar-Ilan University.

He was one of those rare people who will live after death - not only in the hearts and minds of his loved ones, but also in the daily actions of millions of his like-minded people. The heroes of sports live in the clips of the highlights of the competition. The greatest singers forever leave us the soundtrack to our lives. Eliyahu Goldratt left behind a wonderful, different way of doing business.

Eliyahu Goldratt was a mentor, author, scientist, philosopher and business leader. But, most importantly, he was a thinker who made others think. He was often described as an out-of-the-box, motivating individual who wasn't afraid to "slaughter the sacred cows" - urging his listeners to evaluate and rethink their way of doing business from a new, fresh angle.

Dr. Goldratt created and developed Theory of Constraints System (CBT) is a comprehensive methodology that provides organizations and individual stakeholders with answers to the questions:
what to change - to find an aspect that needs to be influenced;
what to change for - to create simple, practical solutions;
how to bring about change – build a secure and stable environment for continuous improvement.

Theory deserves its own place in the pantheon of business philosophies. Its beauty lies in its simplicity, in its tenacity to perceive even the most difficult problems as a series of questions to be asked and stages to be resolved. Set a goal, define limits, make the most of the limit, and keep a close eye on new limits.

It's more of a philosophy of life than a business treatise. We live in a very complex world, and most of these complexities are accepted by us voluntarily. If a person applies the Theory of Constraints to his own life, then his goal will be to live without spraying, more deliberately. Most people cannot simply accept the fact that they are always busy, constantly influenced by modern conditions of life. But he did not despair - he was constantly looking for and overcoming the limitations.

The doctor has gained international recognition as a leader in the development of new areas and business management systems. His services were in great demand among the world's largest companies, such as General Motors, Procter & Gamble, AT&T, NV Philips, ABB and Boeing.

In addition to his research in the areas of business management and business education, he patented a number of inventions, from medical devices to drip irrigation systems and temperature sensors.

Doctor Eliyahu Goldratt was the founder non-profit organization TOC for Education, dedicated to disseminating the principles of Theory of Constraints in the education system. After leaving the Abraham Institute, he founded the company Goldratt's Marketing Group to make TOC knowledge available on the market as self-educational resources, the company Goldratt Consulting to help firms achieve success, and to organize Goldratt Schools in order to educate individuals interested in expanding their knowledge of TOC - this is how the group of companies was created Goldratt Group.

The purpose of the activity Goldratt Group is to ensure that TOC becomes the main way to manage organizations - an effective platform for improving business performance in the areas of Manufacturing, Supply Chain and Distribution, Project Management and Retail, with a focus on improving the quality of decision-making, on improving communication processes within the company, as well as for stimulation in the process of finding new solutions. As part of Goldratt Group Dr. has spent 10 years actively involved in consulting, developing TOC and working on the provocative concept of Actionable Vision.

The concepts of CBT were first introduced to the public in his best-selling book Written in an Unconventional Style: It is a business textbook written in the form of a novel with a love story.

There was also a book written on the topic of production issues called “Production in the TOC Way”, a self-education guide for production workers interested in learning TOC techniques and disseminating them in their companies.

The Doctor wrote a sequel to The Purpose, It's Not Luck. In this book, in his own, unique manner, reveals all aspects corporate structure as the Theory of Constraints removes all old false stereotypes and exposes what is hidden in us under a touch of inertia.

The novel "Critical Chain" explores the reasons why projects never finish on time / stay on budget or technical specifications and develops an alternative approach to project management within TOC. The book is set within a university, and the novel also deals with the problem facing scientific institutions, namely, large-scale business training programs such as MBAs that do not give businesses what they need.

The work titled "Necessary but Not Sufficient" was published in the fall of 2000. In this novel we are talking that, despite the great importance of new technologies in the implementation of large-scale changes, this technology is not enough to get results. Technology itself doesn't change anything, but it creates opportunities to make change happen. What needs to be changed are the rules.

His book for retail called “I knew it” (“Isn’t It Obvious”) is a story about a family retail business. How to learn how to combine technology to involve employees in the process of change, the method of replenishment in accordance with real demand and cooperation with suppliers to ensure high results.

One of his last and most important books there was a piece called “The Choice” that addressed the importance of clear reasoning on a personal level, with business examples.

In addition, he wrote several scientific books - "The Race" ("The Race"), "What is TOC?" (“What Is This Thing Called TOC?”), “The Haystack Syndrome”. He has repeatedly been the author of various scientific and business articles, and also sat on several editorial boards.

One of the masterpieces is the eight-session educational program entitled " Goldratt Satellite Program» ( The Goldratt Satellite Program). This is a common-sense business series that provides a global picture of how functions and structural units companies work in a coherent direction, allowing managers to "see the big picture". Followed by " Goldratt satellite program», Eliyahu Goldratt Together with his son Rami, they began work on the interactive computer program TOC INSIGHTS, aimed at in-depth study of the Theory of Constraints. Today it is one of the best tutorials for getting acquainted with the Theory of Constraint and the principles of its implementation. The issues of project management and production management were covered in detail in a series of webcasts called Goldratt Webcast Series, which are available today in the form " Goldratt strategy and tactics programs» ( Goldratt Strategy and Tactic Program).

He remained active on the path of learning, learning, and writing new works until the very moment of his premature death in June 2011. But he left us the Theory of Constraints - the theory of common sense. Its principles are extremely simple - like all ingenious theories. Therefore, the Theory of Constraints is guaranteed acceptance and a long life.

As he himself once said, The expert is not the one who gives you the answer, but the one who asks you the right question».

The article used materials from the site www.toc-goldratt.com and.

Translation by Denis Starikov.

Suppose you constantly increase the chain tension. Can this be done indefinitely? Of course not, otherwise the chain will eventually break. And where will the break occur? Where the weakest link is (see Figure 1.3). And how many such links can there be in a chain? One, and only one. After all, the chain will break at one point, and this weakest link is the limit that determines the strength of the entire chain.

Restrictions and restrictions

So, we came to the conclusion that our chain has only one link that limits its strength. And how many links can there be that do not determine the strength of the chain, in other words, non-limiting elements? Yes, as much as you like, all other links are not a limitation. Goldratt insists that there is only one constraint in the system at any given time. Like a jumper in an hourglass, it determines the throughput of the entire system. Everything else in the system at this point in time is not a constraint.

Suppose we want to strengthen the chain (improve the system). Where would it be most logical to focus your efforts? On the weakest link! Is it worth reinforcing something else, something that is not a limitation? Of course not. The weakest link in the chain will still break, no matter how we strengthen the rest. In other words, the effort put into the constraints will not cause immediate and noticeable improvements in the performance of the system.

Now let's say that we are smart enough to figure out which link is the weakest, and we, for example, double it. Now it is no longer the weakest link. What happened to the whole chain? She has become stronger, but is her fortress maximum? No, now some other link is the weakest, and the possibilities of the chain are limited by the strength of this link. It is stronger than it was, but now another element determines its strength.

Example from the production area

On fig. 1.4 shows an example with a chain. This is the simplest production system in which raw materials go through five stages and become finished products. Each stage is a link in the production chain. The goal of the system is to earn as much money as possible from the sale of products. Stages are characterized by a specified level of performance per day. Market demand - 15 units per day.

Where is the limit in this chain? Answer: in stage 3, since it cannot produce more than 6 units per day, regardless of how many are made in other stages. Which stages do not determine the throughput of a given production? Other.

We will continue the process of improvements until we achieve maximum performance from stages 4, 5 and 1. Let's look at a new version of the production diagram (Fig. 1.5). What now determines the performance, is the limitation of the system? Now it's a market that can only take 15 units a day. After all, we got rid of the limitation in production, didn't we? Not really - we have removed internal restrictions, and what is now preventing our system from making more money is outside the system. However, this is a limitation. And if we want to remove it, we may need a different set of knowledge and skills.

Linking Constraints and Quality Improvement Processes

Deming developed 14 points of a kind of "road map for quality". Most other theories based on the principle of continuous improvement offer similar recommendations for achieving success. Paragraph 14 says: "... act to bring about change." And Deming builds on this by calling on organizations to engage every employee, educate everyone on the new philosophy, create a “critical mass” of like-minded people, and form initiative groups - teams to improve the system and processes.

The management of most organizations understands this point quite literally: give tasks to everyone. Staff engagement really important element Deming philosophy and most other quality management theories, because success is the result of teamwork. And most of the companies striving for improvement are massively creating initiative groups for quality improvement (quality circles), realizing, as it seems to them, the principle of involvement.

Suppose that initiative groups are working on something that “everyone knows” needs improvement. If we accept Goldratt's statements about limits and limits, how much of the efforts of these teams are directed towards limits? Probably all but one (Figure 1.6). And how many of you know for sure what is the constraint in your organization? If management doesn't even think in terms of limits, but at the same time requires everyone to work on change, how much effort do you think will be unproductive?

“Wait a minute,” you might be thinking, “the introduction of Total Quality Management (TQM) is a long-term process, and it can take years to achieve a result. Patience and perseverance are required. One day all these improvements will be needed.”

It's right. Most organizations understand TQM as a long-term process, the result of which will be visible years later. Precious time, energy, resources are spent on the entire system instead of being focused on one point that could potentially lead to immediate improvement, i.e., a limitation. Impatience, lack of persistence, and lack of quick results all lead many organizations to abandon TQM. People give up if there are no clear results from their efforts to improve processes. Thus, interest, motivation and, eventually, commitment to TQM principles disappear without proper nourishment. Perhaps everyone works diligently, but not all efforts lead to the desired results. For most companies, the question is, “Can our business environment afford us the luxury of time? Can we afford a long wait for results?

It doesn't have to be all that long! Goldratt developed his approach to continuous improvement and called it The Theory of Constraints (TOC). He even described it in the novels The Goal and Goal 2: It's not Luck (It's not Luck!), which demonstrates the use of TOC logical techniques. TOC is a theory with recommendations (prescriptive), that is, it can not only explain what exactly is holding your system from realizing its potential, but also suggest what and how to do it. Many theories answer the first question: what is the problem? Some will even suggest what to do, but usually these theories focus only on the processes and not on the system as a whole. And they absolutely do not touch upon the concept of the limitation of the system.

Change cannot be avoided. You either improve or you degrade.

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Change and the Theory of Constraints

Deming speaks of "transformation" - this word itself carries the concept of "change". Goldratt's Theory of Constraints is essentially about transformations. If you follow its principles and approaches, you will be able to answer three main management questions:

● what to change? (what is the limitation?);

● what to change? (what to do with the restriction?);

Theory of Constraints of Systems (CBT) has been successfully operating and developing for over thirty years. Thousands of companies around the world have adopted it as the main management approach to managing their business as a whole, or to managing a specific functional unit within an organization (for example, production, logistics, supply chain or projects).

Introduction

Organizations are created to achieve some purpose. They are run by managers. The role of management is to continually improve the performance of the organization and increase the value it brings. Managers have always existed, but management as a subject of study is a relatively new direction. Many universities began to teach management in the 1960s as part of a technical or economic education, later gradually moving to a separate full-time MBA education.

The emergence of computer technology in organizations has had a significant impact on the development of management as a profession. Information Systems should have been based on management procedures, and this required the development of management approaches.

Manufacturing companies gained access to new approaches such as MRP(Manufacturing Resource Planning) in the early 1970s, TQM- Total Quality Management, TOC(Theory of Constraints) - the theory of constraints in the mid-1980s.

The Theory of Constraints is a systematic approach based on a rigid causal logic and combining both logical tools and logistical solutions. Thousands of organizations around the world using CBT improved their performance quickly and efficiently. Materials and reports submitted by such companies can be found on numerous websites. For example, a Google search for Theory of Constraints yields 3,460,000 links. Presentations about the latest achievements and developments can be obtained on the website of the international certification organization TOCICO (TOC International Certification Organization) and on the special website of Goldratt Marketing Group - www.TOC.tv. TOC is taught at many universities, business schools and MBA programs around the world.

About the Theory of Constraints of Systems - TOC

The creator of TOC is Dr. Eli Goldratt, who has been developing since 1975 theories of constraints together with a group of close colleagues and practitioners. Currently, TOC covers numerous aspects of the management of organizations and systematically improves their performance. The essence of the theory is reflected in its name - "restriction".

Constraints are factors or elements that determine the limit of the system's performance.

The Theory of Constraints states that every system has a number of constraints, and these are the key to its control.

Figure 1: Constraint and its impact on the operation of the system.

A constraint is more than something that blocks the system from reaching its best level of performance. A constraint is something that, if properly managed, will "elevate" the entire system to a new level. The desire for improvement is based on a strong belief that the system is capable of more. It is the gap between current and desired levels of performance that gives managers the energy and perseverance to make improvements.

The Theory of Constraints provides a simple and practical approach to managing and improving a system through its constraints. There are several types of limits: capacity limit, lead time limit, and market limit (number of customer orders).

Power limit- a resource that is not able to provide in required time the power that the system requires from it.

Market restriction- the number of orders received by the firm is not enough to support the required growth of the system.

Time limit- The response time of the system to the needs of the market is too long, which jeopardizes the ability of the system to fulfill its obligations to customers, as well as to expand its business.

The rules for driving a system through its limitations are simple and practical. These are the five focusing (guiding) steps:

Step 1. Find the constraint(s) of the system.

Step 2 Decide how to make the most of the system's constraint(s) ("get the most out of it").

Step 3 Subordinate all other elements of the system (not restrictions) to the decision.

The first three steps are known as "tidying up the house". They allow the manager to maintain control over the system and increase its reliability and predictability. The application of the first three steps already leads to a significant improvement in performance, since they eliminate a large number of existing losses in the system. As a rule, as a result of these three steps, the system begins to produce significantly more without any additional costs or investments. Once the system is in a stable state, it is ready for focused investment in areas that will bring the highest return, that is, for the next step:

Step 4 Extend the system limit. This means relieving the stress caused by the constraint by adding capacity (in the case of a capacity constraint), obtaining additional customer orders (in the case of a market constraint), and reducing lead times for orders and projects (in the case of a lead time constraint).

Step 5 If the constraint was removed in the previous step (it ceased to be a constraint), return to step 1. Warning: do not let inertia become the main blocking factor in the operation of the system.

The transition from one constraint to another threatens the stability of the organization. Step 3, which requires the subordination of all other elements, forms the behavior of the entire system, which will be aimed at supporting plans and decisions to maximize the use of the constraint. It is within the framework of step 3 that the rules, procedures and mechanisms for day-to-day management are established. If the restriction is changed, all of these rules, procedures and mechanisms will be affected and require changes. Therefore, it is recommended to choose a strategic constraint and organize the operation of the entire system accordingly. This will keep the focus of management and the entire organization on the same constraint and ensure that the company continues to grow towards its goal.

The Theory of Constraints provides a set of solutions for manufacturing, distribution systems, project management, for managing functional units within an organization, and for developing new local or strategic solutions.

This methodology provides the tools to answer four key questions about continuous improvement:

What to change? - Identify the root (key) problem.
What to change? - Develop simple practical solutions.
How to ensure change? - Enlist the cooperation and support of the people needed to implement the solution.
What creates a continuous improvement process? - Implement a mechanism to identify areas for improvement.

The results of applying the Theory of Constraints - examples of implementations

A distinctive characteristic of companies that have implemented TOC is how they have experienced economic crisis 2008-2009. While their industries were experiencing severe declines in sales and profits, many of the companies using Theory of Constraints, not only kept the results of operations at the pre-crisis level, but also managed to provide significant growth. In this article, I want to give a few examples of such companies.

Experience in implementing Theory of Constraints in Russia

LPK "Continental Management", timber holding company

Continental Management is a vertically integrated holding, one of the largest timber companies in Russia. The main activity of the company is the management of assets of the holding's enterprises engaged in complex wood processing. The holding's enterprises produce more than 200 types of products, from pulp, cardboard, packaging and newsprint to wood chemical products. The turnover of the holding in 2009 amounted to 6 billion rubles. The holding, including enterprises in the regions of Russia, employs about 7,000 people.

The company began implementing the Theory of Constraints at the end of 2008 with a training program for 20 company specialists, which was conducted by Eli Schragenheim, one of the leading TOC experts, director of Goldratt Schools for Europe. Internal teams then worked with Inherent Simplicity to implement the implementation.

The results of the implementation of the Theory of Constraints in enterprises:

The level of availability of products in the warehouse - increased to 95%
Lead time reduced by up to 75%
The period for which the results were achieved - 6 months
Implementation continues in a number of other companies of the holding

Implemented in short time solution to the Theory of Constraints for the supply chain, the company solved a major management dilemma in a make-to-stock environment: how much to produce?

Companies hold stocks finished products because their customers don't want to wait for their order to be produced. Consequently, the company is forced to start production in the absence of firm orders and rely on the forecast. Since the forecast is never accurate, this leads on the one hand to a shortage of a number of items in the warehouse, which leads to lost sales, and on the other hand to an excess of other items, which leads to obsolescence and write-off of products and low turnover of goods.

According to TOC's decision, the factory warehouse is the part of the system where the majority of inventory should be stored. It supplies downstream warehouses and customers with the required products through frequent deliveries based on daily consumption information. The factory warehouse acts as the main "regulator" for the entire replenishment system, starting from production. The solution provides a significantly higher level of product availability with a significantly lower inventory level compared to conventional inventory management methods. The volume of sales increases as the probability increases that the customer will find what he needs in the warehouse, when he needs it. Product turnover increases as the inventory level in the system is constantly and continuously adjusted to actual market demand.

Experience of implementing Theory of Constraints in India

Fleetguard Filters Pvt Ltd, supplier to the automotive industry.
Presented by Niranjan Kirloskar.

This company started applying TOC in 2006. They quickly improved their work production units, achieved a high level of on-time fulfillment and a high level of stock availability of finished goods in the factory warehouse, and then, ensured a high level of availability of products in regional warehouses, while reducing the overall level of inventory. The market responded with a steady growth in demand for the company's products. As a result, the company received a significant increase in profits.

At the international conference TOCICO in Tokyo in November 2009, the company presented a report on the results of its activities.

Figure 2: Fleetguard Filters Performance - Sales and Net Income

It should be noted that Fleetguard Filters achieved such results in the face of a decline in production in the automotive industry. Despite the fact that in 2008 the industry experienced an 80% decrease in production volumes, the company had a 10% profit without a decrease in sales volumes. In 2009, the decline continued, but the company increased sales by 18%, increasing net profit by 50%. According to their estimates, a significant increase in sales volumes is expected, and an even greater increase in profits.

How has such growth been achieved?

The company used the existing capacities to the maximum and ensured 100% availability of finished products. Compared to 2006, the company was able to "squeeze out" of the existing capacity almost twice as much.
A record time to develop and bring new products to market has been achieved, which is only one third of the industry standard time.
The company provided distributors and retailers with a significant increase in the turnover of goods due to its 100% availability.
A high reliability of supplies to OEMs and the export market was ensured.

This is an example of a holistic Theory of Constraints solution that includes production, distribution (supply chain), development new products, marketing, sales and human resource management.

Results achieved:

Factory stock availability rate - 99% at 6-8 days stock volume,
The level of availability of products in the regional warehouse - 99% with a 12-day stock volume,
Close to 100% availability of products from distributors,
Work in progress - 2-3 days
Availability level raw materials- more than 98%

Implemented by Kiran Kothekar, Vector Consulting Group

Experience of implementing Theory of Constraints in Japan

Juntos, public sector bridge design and construction company

Due to constant natural disasters, the consequences of which must be eliminated, the Ministry of Public Lands, Infrastructure, Tourism and Transport of Japan initiates thousands of projects every year. AT last years public funding has dropped to about half of what it was during its peak. Many construction companies are faced with the challenge of reducing costs and project lead times. Many companies have realized that they need The best way project management.

In 2007 Juntos management decided to use the Theory of Constraints method for project management.

Results achieved:

On-time delivery (completion of projects as originally planned) increased from 30% to 86%
Project lead time reduced by more than 20%
Costs for materials and equipment decreased by more than 20%
Improved communication process with customers.

The critical chain projects were led by Keita Asaine and Ryoma Shiratsuchi.

Experience in implementing Theory of Constraints in the UK

Positive Solutions - financial consulting

Positive Solutions provides financial planning services in the UK. The company offers its assistance in matters of investments, loans, pensions, insurance and others and works through independent financial advisors. The company's headquarters is located in Newcastle, UK. Since 2002 the company has been subsidiary AEGON UK.

Company founder David Harrison built it from scratch. As sales growth remained below expectations, David used TOC logic tools to analyze the UK independent financial advisor market and identified key issues:

Attraction rate independent consultants was insufficient and did not allow to achieve the planned level of growth
The sales cycle time was too long and did not allow to achieve sales targets
The company's offerings were not differentiated from competitors' offerings
Resources were loaded at full capacity, resulting in lost sales.

To solve the identified problems in 2001, the company applied Theory of Constraints to manage the recruitment of new independent consultants and build a more efficient sales process.

Results achieved:

Within one month, the number of consultants involved in cooperation doubled, and over the next two months - tripled
Turnover grew by 40% during the year to reach £25.6 million
Gross profit increased by 54% to reach £6.2 million
Positive Solutions was ranked second in the national Vantis Top 100, topping the list of financial services companies.

The implementation was carried out by Oded Cowan (International Director of Goldratt Schools) together with Andy Watt (www.goldratt.co.uk). This example is described in the supplement to the anniversary edition of E.M. Goldratt "The Purpose", dedicated to the 20th anniversary of the first edition of the book.

Other examples of implementing Theory of Constraints

There are many publications in which the companies themselves or independent experts describe the results achieved through the implementation of CBT. There are over 90 such links on the Goldratt Marketing Group website. Over 400 publications scientific research were published as a book "The World of Constraints" by Victoria Mabin and Stephen Balderstone (" The World of Theory of Constraints" by Victoria J Mabin and Steven J. Balderstone).

Listed below are some famous companies and institutions that have publicly declared their use of Theory of Constraints:

ABB Switzerland

Boeing Aviation and astronautics

air force USA

Base marines USA by maintenance technology

Elwood City Forge USA

Israeli Aircraft Industry

Amdocs Israel

Dr Reddy's pharmaceutical company india

Tata Steel India

You can learn more about their experience by searching for information on the Internet, indicating in the request next to the phrase "Theory of Constraints" the name of the company.