TOC for Production Management

by Goldratt Schools

TOC was born on the production shop floor. It focuses on the company’s goal, usually to make more money now and in the future through sales. True to its roots, this book recognizes the importance of serving customers through quality and on time delivery and, thereby, opening the possibility of increasing sales and profit. While the business literature recently discovered the existence of business functional “silos”, TOC has long valued, and pragmatically practiced, close synchronization between production, marketing, sales and finance.

This book furthers the insistence on the pre-eminence of the company goal over any local functional area. It presents an exciting, pragmatic, and amazingly complete view of how to manage production for the benefit of the company as a whole.

Thirteen authors from eight countries present an exciting and practical guide of how to manage production for the benefit of the company as a whole.

Authors: Eliyahu M. Goldratt, Oded Cohen, Eli Schragenheim, Philip J. Viljoen, Amir Schragenheim, Mokshagundam (Shri) Srikanth, Alejandro Fernandez Rivera, Jelena Fedurko, Humberto R. Baptista, Frances Su, Maria Cristina Sierraalta, Ryoma Shiratsuchi, Keita Asaine.

Read Editor’s Forward.

Project Management the TOC Way

by Goldratt Schools

The Theory of Constraints body of knowledge has expanded rapidly over the last three decades. It springs from complex systems theory, multi-dimensional linear programming and a belief that logic can successfully be applied to technical-social human organizations. One of its most exciting applications is in the area of multi-project management known world-wide as Critical Chain Project Management, or CCPM. This books brings to the project manager a succinct overview and some of the major developments, some very recent, in the last 20 years. The eleven authors from seven countries offer useful insights into the CCPM application body of knowledge from the Goldratt Schools’ perspective.

As with other existing applications of TOC thinking (including Operations, Supply Chain, Marketing, Sales, Accounting, Finance), parts of CCPM are counter-intuitive. We all try to do the best we can. Unfortunately, in large organizations, what is best for one part of the organization is rarely best for the organization as a whole. The term for this is ‘sub-optimization’ or, more precisely, optimizing at a local level to the detriment of the larger organization. In project management, the result of focusing on individual task performance frequently results in missed due dates, over-run budgets, and inadequate project scope. This generates unhappy customers and, for the organization, lost sales, decreasing profits and poor stock performance on the exchange market.

The nine articles in this book, separated into five chapters, are designed to provide the knowledge and guidance to overcome sub-optimization and produce successful projects beyond most manager’s wildest dreams.

Authors: Oded Cohen, Eli Schragenheim, Jelena Fedurko, Yunn-Jin Hwang, Yu-Min Chang, Rong-Kwei Li, Philip J. Viljoen, Frances Su, Roy Stratton, Alejandro Fernandez Rivera, James R. Holt.

Read Editor’s Forward.

Ever Improve

A Guide to Managing Production the TOC Way

New Edition June 2010 - now includes Make to Availability

U-shape simplifies logistical solutions for production

by Oded Cohen

This is a new and enhanced edition of the guide to TOC solutions for production management.

In addition to the initial three parts that cover the TOC systematic approach – the U-shape, describe the reality of production management and present the detailed solution for Make to Order (MTO), the new edition contains two new parts: Part 4 covers the methodology and details of implementing the MTO solution. Part 5 presents the Make to Availability (MTA) solution and implementation aspects.

Oded Cohen started his personal journey with TOC over thirty years ago and has been an integral part of the development, teaching and implementation of the TOC methodology, solutions and implementation processes. Encouraged by his students who needed help to organize, store and easily retrieve the TOC knowledge, Oded has authored U-shape which presents the way TOC knowledge is linked through the inherent logic from the problem to the solution.

Ever Improve provides a thorough understanding of managing production the TOC way coupled with the practicalities of making it happen. The book has proven to bring dramatic improvements in performance of production companies.

Supply Chain Management at Warp Speed

Integrating the System from End to End

by Eli Schragenheim, H. William Dettmer and J. Wayne Patterson

In 2000, Schragenheim and Dettmer published the ground-breaking Manufacturing at Warp Speed. At the time, the cutting-edge ideas expressed were the original work of the authors and not well-known beyond the book's audience. In the years that followed, Elivahu M. Goldratt, father of the Theory of Constraints (TOC), adopted their ideas, added his own valuable insights, and popularized them worldwide.

Supply Chain Management at Warp Speed: Integrating the System from End to End serves as the sequel that refines and updates the former approach to production management with new ideas that complement earlier tactics. The authors' prime motivation for writing this book was to integrate the TOC method for managing the distribution of finished goods with the acquisition of raw materials and the manufacturing process. The result is the first book to describe, in detail, the application of the TOC approach to assured availability in distribution, for both original equipment manufacturers and retailers.

The book integrates manufacturing, distribution, and raw material management into a single end-to-end supply chain, addresses new demands on a firm offering the ability to handle rush orders and reviews the issues surrounding availability and the management of inventory moving through distribution systems.

Fully illustrated, with numerous examples, case studies, and manufacturing scenarios, Supply Chain Management at Warp Speed provides TOC practitioners with the tools needed to address the performance issues of the entire supply chain and develop solutions that represent a win for the end-user as well as for stakeholders along the entire supply chain.

Manufacturing at Warp Speed

by Eli Schragenheim and William Dettmer

Manufacturing systems don't exist in a vacuum, isolated from the rest of the company, but they are often managed that way. A truly effective, highly competitive manufacturing company integrates its manufacturing, marketing, sales, purchasing, and financial functions into a well-coordinated whole. Manufacturing at Warp Speed: Optimizing Supply Chain Financial Performance explains in detail how to coordinate all these functions to maximize sales revenue while controlling inventory and overhead costs. Ultimately, the effects of applying the new Simplified-Drum-Buffer-Rope (DBR II) introduced by the authors include dramatically faster manufacturing cycle times, shorter order-to-delivery lead times, higher on-time delivery reliability, and better customer satisfaction.

The book gives you everything a typical production professional needs to implement this new DBR approach. A supplemental feature - the Management Interactive Case Study Simulator (MICSS) - is included with the book. This CD-ROM sets up a virtual company where you can test and practice the processes you learn in the book before implementing them in your organization. The book and software together constitute the complete package for learning how to streamline manufacturing operations.

The first book available on second generation Drum-Buffer-Rope, Manufacturing at Warp Speed: Optimizing Supply Chain Financial Performance describes the simplest, most efficient methods for reducing manufacturing cycle time and increasing the speed of manufacturing yet devised. Fully illustrated, with numerous examples, case studies, and manufacturing scenarios, the book is so easy to read that even the novice can understand it. Correct use of this new method practically assures your company has the competitive advantage.

Deming and Goldratt

by Domenico Lepore & Oded Cohen

Radically improve any organization by applying the management philosophies of W. Edwards Deming and Eliyahu M. Goldratt with one powerful 10-step process: The Decalogue. A step by step guide to implementing the management systems of W. Edwards Deming and Eliyahu M. Goldratt.

Dr.'s Deming and Goldratt are recognized as two of the foremost geniuses of modern management. The integration of the Theory of Constraints and the System of Profound Knowledge into one cohesive process brings the work of these two great thinkers to a new level of accessibility. The ten steps of THE DECALOGUE reflect the basic concept that in order to manage effectively we must be able to predict the outcome of out management decisions. This seemingly simple statement is the core of successful management.

The Tools presented in this book will enable any organization to:

• Manage effectively
• Develop focused business strategies
• Create an atmosphere of continuous improvement

You will not find a quick fix in these pages, but with determination and focus you will be able to control and radically improve your organization.

Management Dilemmas

The TOC Approach to Problem Identification and Solutions

by Eli Schragenheim

Demonstrates how the Theory of Constraints can resolve various "Management Dilemmas," with a focused approach to business analysis.

• Explains TOC in an easy-to-read fashion, through short stories
• Provides an analysis with each chapter, to show how TOC principles can be most effectively applied
• Involves real-world problems and situations, faced by many organizations in various fields

An incredible ability awaits managers who practice Theory of Constraints (TOC) techniques: they can take a problem, look beyond the less important details, and directly identify the source of trouble. They've been known to promptly resolve perplexing matters - while the uninformed remain stuck.

So many more managers could gain the benefit of TOC thinking... if they only took the time. Eli Schragenheim now offers an informative and enjoyable self-learning method, proving how TOC can be invaluable at a wide variety of workplaces.

Management Dilemmas: The Theory of Constraints Approach to Problem Identification and Solutions conveys TOC methods through "virtual experience"-stories of managers and the situations they need to resolve. Take note of the dilemmas they're facing. Think about how you would respond under those circumstances. Then, compare your reactions with Schragenheim's TOC-influenced analysis.

Associated with Dr. Eli Goldratt (the founder of TOC) for seven years, Schragenheim doesn't tell how the stories end. Instead, he encourages the reader to try out TOC techniques-especially the need to arrive at the most precise answer by raising the right questions. The conclusions you reach today could greatly help your on-the-job thinking tomorrow!

ERP Tools, Techniques and Applications

by Eli Schragenheim and Carol A. Ptak

Intensifying competition forces companies to closely integrate with their customers and suppliers. Cooperation creates a more flexible supply chain. Yet, lead-times become shorter and demand for increased variety continues to grow. This dilemma requires a means to implement the desired integration. Enterprise Resource Planning (ERP) is that tool.

ERP, a system for effectively planning and managing all the resources of an enterprise, fully utilizes the increased power available in computers today. ERP is distinguished from MRP in its use of relational databases, fourth-generation languages, integrated computer aided engineering tools, and open system portability to adjunct planning systems, finite scheduling systems, and manufacturing execution systems.

Necessary but Not Sufficient

by Eliyahu M. Goldratt with Eli Schragenheim and Carol Ptak

After reading the newspapers and following the sharp oscillations of the stock market, it becomes apparent that hi-tech companies are of a different breed. Never before have the chances of making a fortune been so realistic and never before have large companies been so fragile. What is really going inside of these hi-tech companies? What types of pressures and challenges are they facing? And how do they cope? Computer software providers, especially those that speciallize in handling the data needs of organizations, are prime examples of these volatile companies. In the nineties we witnessed their growth from small business into multibillion dollar giants. No wonder investors were attracted. In 1998 it was easy for these companies to raise as much money as they wanted. But now, investment funds ave dried up. Why? And more importantly, is there a way to reverse the trend? This book gives the answers.

The Cash Generation Machine

by Luis Armando Zarruk and Alejandro Fernandez

"The Cash generation machine" is a book that presents the series of cases demonstrating the application of the latest TOC knowledge for all areas of managing companies. The cases have been compiled and put together in a book by TOC practitioners Luis Armando Zarruk and Alejandro Fernandez. Alejandro Fernandez has been successfully leading the TOC development in Columbia since 1994.

The first Spanish edition of the book was presented at the I Latinamerican TOCICO Conference in Bogota in August 2008, and the new Spanish edition is expected in the first quarter of 2009, as well as the English edition.

Starting with Dr. Eli Goldartt' article titled "Never Say I Know", the book presents precise and state of the art insights into the specific TOC issues by the following recognized worldwide TOC practitioners and teachers:

• TOC: Key Concepts and Assumptions, by Luis Armando Zarruk (Colombia)
• Throughput Accounting, by Thomas Corbett (Brazi)
• A managerial view of costs, by Luis Armando Zarruk (Colombia)
• TOC: Operational and financial measures, by Luis Armando Zarruk (Colombia)
• How Lean Accounting Works - Does It Solve the Measurement Nightmare?, by Debra Smith (United States), Peter Milroy (Canadá) and Gregory S. Cass (United States)
• Increasing Cash Velocity, by Lisa Lang (United States)
• Evaporating Cash Constraint, by Ravi Gilani (India)
• Making Production the Competitive Advantage, by James Richard Holt (United States)
• Buffer Management as a Central Tool in Dealing with Daily and Expected Uncertainty, by Elyakim Moshe Schragenheim (Israel)
• Critical Chain Project Management, by Janice F .Cerveny (United States) and Stuart Diaz Galup (United States)
• Improving Project Management, by Stefan van Aalst (Dutch)
• Knowledge-Work In The Dark Age Of Business, by Tony Rizzo (United States)
• Managing Distribution According to TOC Principles, by Amir Schragenheim (Israel)
• The finance of TOC Distribution solution, by Humberto R. Baptista (Brasil)
• The Core Structure of TOC Thinking Processes and their applications to improve systems (The "U" shape), by Oded Cohen (Israel)
• Manageing cronic conflicts using the (composite) method of Cloud Evaporation - Current Reality Branch - Future Reality Branch: a systemic and systematic view, by James F. Cox iii (United States) & Victoria J. Mabin (United States)
• How to build a high-throughput sales process, by Justin Roff-Marsh (Australia)
• Unblock the power of your salesforce!, by Dietrich Legat (Austrian) and William W. Woehr (United States)
• Viable Vision, by Gerald Kendall (United States)
• The Process of Continous Improvement that promotes a Jonah, by Alejandro Fernández (Colombia)
• Cultural Change: A Requirement to be Successful Implementing TOC, by Roger Antonio Zarruk (Colombia)

And it also includes the follwing case studies:

• The Constraints in the Organizational Structure of a Service Company, by Alfredo Vargas (Colombia)
• A place called Encava, by María Cristina Sierraalta (Venezuela)
• Our Success Journey with TOC, by Niranjan Kirloskar(India)
• Company Case: La Bugueña Ltda., by Luz Mary Nova (Colombia)
• Tesicol: The Transition from the World of Costs to the World of Throughput, by Luis Armando Zarruk (Colombia)