Velocity: A business novel

Post by: Rick Haynes

Tweet I am reading the book “Velocity: a business novel” that is written by members of the Goldratt Institute.  It is intended as a sort of sequel from “The Goal,” but it is a different.  It is similar in the writing style because it is written like a story of a manager who must lead [...]

Theory of Constraints vs standard accounting

Post by: Rick Haynes

Tweet There is a reason that “The Goal” book talks about different financial metrics, because the standard ones may not lead to the right behavior. The book says that an improvement must do one of the following; Improve throughput (making money), reduce inventory, or reduce operating costs. We were talking with a client that had [...]

Theory of Constraints – at the Enterprise level

Post by: Rick Haynes

Tweet The theory of constraints was portrayed as a manufacturing improvement tool when it was first discussed, and it is a good tool to use to examine a manufacturing process. If you read “The Goal” it looks so simple, and it is. The difficulty in the TOC application is when you do not have a [...]

Theory of Constraints and Lean Six Sigma

Post by: Rick Haynes

Tweet If you have been in process improvement since the 80s, you have heard of the Theory of Constraints. It was introduced in the book “The Goal” by Eli Goldratt. The theory is summarized in five steps; 1. Identify the constraint 2. Exploit the constraint 3. Subordinate to the constraint 4. Elevate the constraint 5. [...]

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