Theory Of Constraints

I first heard about the Theory of Constraints (TOC) when I studied Operation Management a few years ago. At that time I didn't focus much on it as it was just one of the many theories introduced to us.

Until recently a friend of mine who is so passionate about this theory mentioned it to me again. TOC was first proposed in 1986 by Dr. Eliyahu M. Goldratt in his widely read book The Goal (Not the movie!!!). It was written as a novel instead of textbook so that the readers will be able to understand the theory better. The story is about a production manager facing severe problems in his manufacturing plant and met a consultant who helped him to break out of conventional ways of thinking.





















TOC focuses on 'how to think' and a lot of examples in the book are just common sense. Yet, people often don't see it or ignore it because common sense is normally masked by common practice.

In the recent TOC conference held in Taiwan, Goldratt told the participants that for years he refused the book to be translated into Japanese. The reason behind it was that the Japanese was already far more ahead of the American and the gap will be wider if the Japanese apply TOC into their industries. Now the book is available in many languages and it is a must read for all Toyota plant managers. If you think this guy talks big about his theory, his Viable Vision Program even claims that the program will help a company turns its current revenue to net profit in 4 years time, of course with some requirements the company has to meet.

The Goal is an interesting book and really worth reading even if you are not working in manufacturing environment. It may help you in improving the processes at work. : )