Theory of Constraints Handbook by Cox, James F. III -- Read -- Imperial Library of Trantor

Index

Preface Acknowledgments

Gantt Charts PERT/CPM in the Single Project Environment Origins of PERT and CPM Project Failures Single Project Management Literature Multiple Project Management Literature Macro Issues Micro Issues Critical Chain in the Single Project Environment Why These Widespread Project-Related Problems Persist Task Duration Uncertainty Traditional Survivor Behaviors Issues in Creating a Project Plan Issues in Managing Project Execution Modifying Task Duration Estimates A Bit of Statistics Critical Chain Scheduling—Steps 1 through 4 Merging Paths—Step 5 Communications—Step 6 Three Sources of Critical Chain Project Protection Establishing Project Priorities Selecting a Scheduling Resource and Establishing Scheduling Buffers Tracking Buffer Consumption Knowing When to Act Adjusting Buffers Using Buffer Consumption Information to Continuously Improve Components of a Project Budget Assigning Total Project Costs to Project Tasks Implementing a New Project Budgeting Process Internal Reporting External Reporting Managerial Actions to Support Critical Chain Project Management Importance of Trust Implementing a Critical Chain Project Management System Rule 1 Pipelining: Limit the Number of Projects in Execution at One Time Rule 2 Buffering: Discard Local Schedules and Measurements, and Use Aggregate Buffers Rule 3 Buffer Management: Use Buffers to Measure Execution, and Drive Execution Priorities and Managerial Interventions Challenge 1: Gaining Managerial Commitment for Implementing the Three Rules Challenge 2: Translating Concepts into Practical Procedures and Instructions Challenge 3: Sustaining the Critical Chain Rules and Results Step 1: Achieve Management Buy-In Step 2: Reduce WIP and Implement “Full Kitting” Step 3: Build Buffered Project Plans Step 4: Establish Task Management Step 5: Implement Surrounding Processes Step 6: Identify Opportunities for Continuous Improvement (POOGI) Step 7: (When Applicable) Use Superior Delivery as a Competitive Advantage to Win More Business Performance Gains Come from Managing Differently, Not Better Planning and Visibility Implement All of the Three Rules Top Managers Must Play an Active Role Actively Manage the Buffers Can Critical Chain be implemented without basic project management in place first? Should a pilot be run before a full rollout of Critical Chain? What about cultural and behavioral changes? What is the role of software in Critical Chain? Is a Project Management Office (PMO) needed with Critical Chain? How is non-project work handled with Critical Chain? Should the scope of a Critical Chain implementation include vendors and subcontractors? How does Critical Chain improve quality? Critical Chain seems to be all about timelines; what about controlling costs? Do we need project-level budgets in multi-project operations? Does Critical Chain work with Earned Value Reporting? How does Critical Chain work with Lean? What are the likely causes of failure in implementing Critical Chain? No Urgency to Change The Silver Bullet Negative Branches Root Causes Basic Principles Simple Example: Cleaning the Room Simple Example: TOC Practitioners Group Other Processes Planning with the Cycle of Results Traps Project Environment System of Systems Translating Lean into the Project System of Systems for Improvement Addressing the Disconnects in Lean Techniques for Project Environments Specifying Value Identify Steps in the Value Stream Make Value-Creating Steps Flow towards the Customer Let Customers Pull Value from the Next Upstream Activity Pursuing Perfection Historical Developments Preceding TOC Derivation of DBR Using the Five Focusing Steps Overviews Applying DBR to Different Types of Facilities: VATI Analysis Free Goods What if the Market Is the Constraint? Re-Entrant Flows Recoverable Manufacturing and Remanufacturing Buffer Sizing Buffer Sizing and Lead Time Supply Chain Management Service Environment TOC and Other Modern Philosophies Floating or Multiple Bottlenecks The Need for a Focus on Flow Ford and Toyota Production Systems—A New Perspective Production Operations and the Five Focusing Steps of TOC Characteristics of Production Operations Applying the Five Focusing Steps to Production Operations The Drum The Buffer The Rope The Need for Control and the Need for Corrective Actions Understanding Buffers: The Buffer as the Source of Information for Controlling Execution Buffer Management—The Process The Fundamental Elements of the Classification Scheme V-Plants DBR in V-Plants A-Plants DBR in A-Plants T-Plants DBR in T-Plants I-Plants DBR in I-Plants The Five-Focusing Steps (5FS) The Critical Distinction between Planning and Execution Concentrating on the Flow What Should the Strategic Constraint Be? How Is the Planning and Execution Viewpoint Addressing the Issue of Scheduling and Buffering the CCR? How Does Refraining From a Detailed Schedule of the CCR Affect the Execution? What Does the Emphasis on Flow Add to the Challenge to Traditional DBR? The Main Ingredients of the Solution The Time Buffer Load Control Determining the Safe Dates Capacity Reservation Buffer Management Short-Term Planned Load The Notion of “Slack” The Cases Where S-DBR Does Not Fit The Current Confusion in Managing Stock The Common Misunderstanding of Forecasts The Current Undesirable Effects in MTS The Basic Principle of Flow From MTS to MTA Determining the Appropriate Inventory Buffer Management in MTA Generating Production Orders and the State of Capacity Peak and Off-Peak Behaviors Too Much Green—the Target Is Too High Too Much Red—the Target Is Too Low Discussion: Issues with DBM and By How Much to Increase/Decrease the Targets The Process of Ongoing Improvement (POOGI) MTA for Components Which Items Fit MTA and Which Fit MTO? Vendor-Managed Inventory (VMI) Mixed (MTA and MTO) Environments Dealing with Seasonality Problematic Environments for MTA MTS That Is Not MTA Moving from MTS or MTO to MTA Software Considerations The Natural Tendency for Push Behavior Why Is It Impossible to Find a Good Forecasting Model? Aggregate Stock at the Highest Level in the Supply Chain: The Plant/Central Warehouse (PWH/CWH) Determine Stock Buffer Sizes for All Chain Locations Based on Demand, Supply, and Replenishment Lead Time Increase the Frequency of Replenishment Manage the Flow of Inventories Using Buffers and Buffer Penetration Use Dynamic Buffer Management Set Manufacturing Priorities According to Urgency in the PWH Stock Buffers Why Does a Pull Supply Chain Work Better? Managing Product Portfolios Rules for Setting up Initial Buffer Sizes Known Patterns for Sudden Changes in Consumption Two Different Changes Resolving the Forecasting versus DBM Dilemma to Provide Excellent Consumption before, during, and after an SDC Identifying When an SDC Is Meaningful Handling of an SDC Simulation Pilot Project 1. Strategic Inventory Positioning 2. Dynamic Buffer Level Profiling and Maintenance 3. Dynamic Buffers 4. Pull-Based Demand Generation 5. Highly Visible and Collaborative Execution Case Study 1: Oregon Freeze Dry Case Study 2: LeTourneau Technologies, Inc. Development of Cost Accounting Business Environment, First Half of the 20th Century Business Environment, Second Half of the 20th Century Direct or Variable Costing Income Statement Activity-Based Cost Accounting Balanced Scorecard Lean Accounting Traditional Budgeting, Capital Budgets, and Control Mechanisms Planning Throughput Control Sensitivity Analysis Throughput Accounting Approach to Performance Evaluation Case Studies and Simulations Information and Decision Making Chapter Summary Other Chapters Dealing with Performance Measures Do We Measure Too Much? Why Do We Have Measurements? The Constraint Is the Primary Relevant Factor Profit Maximizing in TOC Metric 1: Reliability Metric 2: Stability Metric 3: Speed/Velocity Metric 4: Strategic Contribution Metric 5: Local Operating Expense Metric 6: Local Improvement/Waste So, How Is the Operational System Performing? Focusing on Improvement The Goal—Achieving Continuous or Ongoing Improvement Purpose and Organization of This Chapter Key Concepts and Definitions A Historical Perspective—Standing on the Shoulders of Giants Introduction The Improvement Gap and Challenges The Types of Management Mistakes When under Pressure to Change The Extent and Consequences of the Failure Rate of Change The Vicious Cycle Related to the High Failure Rate of Change Summary of Why Change? Introduction Finding the Core Conflicts within Continuous Improvement and Auditing Finding a Simple and Systematic Way to Break Conflicts Identifying Limiting versus Enabling Paradigms in Continuous Improvement Summary of What to Change Introduction Criteria to Evaluate a New Solution Direction of Solution to Breaking the Continuous Improvement Conflicts Lessons from CI Methods Developed by Ford and Ohno and Other Giants Importance (and Risks) of Measurements and Incentives Ensuring the New Direction Addresses All Major UDEs Potential Negative Branches and How to Prevent Them Summary of “What to Change to?” Typical Implementation Obstacles and How to Overcome These Using TOC to Focus and Accelerate Lean and Six Sigma Initiatives Using TOC’s S&T as a CI and Auditing Tool Summary of How to Cause the Change Historical Perspective to Holistic TOC Implementations The Goldratt Satellite Program The X-Y Syndrome of Local TOC Implementations The ″4 × 4″—First Attempt at a Process to Launch a Holistic TOC Implementation The Viable Vision Initiative Using TOC’s Strategy and Tactic Tree to Guide Holistic Implementations Catering for Differences within the Private and Public Sector Background Designing the Five-Day TOC Workshop and Implementation Process Proposed Changes to the Traditional TOC TP Analysis Roadmap Detailed Case Study: Analysis on Solid Waste Management in City A Current Status of Pilot Projects (by the End of 2009) Future Application of TOC within the Public Sector Specific Lessons Learned from All the Public Sector Pilots Future Research The Birth of First Solar Inc. Theory of Constraints Contribution to First Solar’s Success Building the Foundation Unbolting the Existing Systems and Measures Building on Early Success Implementing the Proven TOC Toolset The Role of TOC’s “Thinking Processes” at First Solar What Has Made TOC Work at First Solar? Recommended Good Practices for Implementing TOC Holistically Summary What Is a Business Strategy? Factors That Comprise Strategy Criteria for a Good Strategy Ansoff’s Matrix of Four Strategies Porter’s List The Resource-Based View Learning/Emergent Strategies A Summary of Schools of Strategy What Is Marketing Strategy? Inadequate Planning Inability to Analyze the System No Theory of Implementation Conflicts within the System Conflicting Standards of Performance Dysfunctional Compensation and Reward Policies Three Goals or Necessary Conditions of Any Strategy The Five Focusing Steps Example—The Five Focusing Steps The Role of Throughput Accounting and Other Metrics in Strategy Introduction to Strategy Applications Generic Content of S&T Structures Manufacturing Projects Distribution/Retail Six Ways That the Holistic Distribution System Increases Throughput INJ. 1: Increase Customer Perception of Value that Competitors Have Difficulty Copying INJ. 2: Implement Practical Segmentation INJ. 3: Identify and Build the Decisive Competitive Edge Factor INJ. 4: Strategic Segmentation Layer 0. There is no problem Layer 1. Disagreeing on the problem Layer 2. The problem is out of my control Layer 3. Disagreeing on the direction for the solution Layer 4. Disagreeing on the details of the solution Layer 5. “Yes, but...” The solution has negative ramifications Layer 6: Yes, but… we can’t implement the solution Layer 7: Disagreement on the details of the implementation Layer 8: You know the solution holds risk Layer 9: “I don’t think so”—Social and psychological barriers Agree on the Problem Agree on the Direction of the Solution Agree the Solution Solves the Problem Agree on the Problem Agree on the Direction of the Solution Agree Our Solution Solves Their Problem Close For Whom Can You Develop Offers? Vendor Managed Inventory Reliable Rapid Response Consumer Goods Projects Pay Per Click Gain Sharing (My Mafia Offer) Preface to Chapter Purpose of the Chapter Outline of Chapter Overview of TP and Their History and Development The TP Tools The TOC TP Literature The Relationship of Problem-Solving Methods to Problem-Solving Activity Unstructured Approaches—Management on the Hoof Formal or Structured Approaches Issues Emerging from the TOC Literature The Nature of the TOC Literature Vis-à-Vis Other Literatures Suggested Topics for a Self-Audit of TOC Understanding the Relationship of the TOC TP to Problem-Solving Activity The Philosophical Basis of the TOC TP Summary Insights from Classificatory Mapping of the TOC TP What Has Been Covered in This Chapter Findings and Recommendations Links to Other Chapters in the TP Section Problem Investigation and Solution Development—the Cloud Inner Dilemmas Day-to-Day Conflicts Reducing Fire Fighting Dealing with the Undesirable Effects (UDEs)—the UDE Cloud Example of a System UDE Cloud–Production Example of a System UDE Cloud–Retail Addressing Multiple Problems—the Consolidated Cloud The TOC Methodology for Problem Solving—the U-Shape Strengthening the Solutions—Dealing with NBRs The Intermediate Objective (lO) Map and Implementation Plans Reinforcing the Mentality of a Scientist—Jonah’s Approach Current Reality Tree (CRT) Evaporating Cloud (EC) The “Snowflake Method” The “Three-Cloud Method” Evaporating Cloud Future Reality Tree and Negative Branch Reservation Prerequisite Tree Transition Tree The First Step: The Goal Communication, Alignment, and Synchronization Implementing an S&T Using the TPs to Implement an S&T The Knowledge Organizer The Cloud The Logic Branch The Ambitious Target Tree Preliminary Study Stigmatization Negative Peer Pressure Importance of Face Self-Regulation Why TOC? Marketing Course Materials Delivery Quantitative Qualitative Challenges in Service Management Why the Need for Change? Literature Mapping and Observations Limitations of Current Research What to Change? Why Is TOC Not Yet Popular Among Service Organizations’ Managers? What Do TOC and Focused Management Have To Offer? The Seven Focusing Steps of TOC Bottleneck Management Exploiting Permanent Bottlenecks Subordinating Everybody Else to the Permanent Bottlenecks Elevating the Permanent Bottlenecks Response Time Reduction Performance Measures Costing, Pricing and Decision-Making Quality Enhancement Barriers to Adoption Challenges in the PSTS Sector What TOC Has to Offer Expertise and Assets Service Delivery Measurement Marketing and Sales Strategy Replenishment for Services Critical Chain for Services Drum-Buffer-Rope for Services Throughput Accounting for Services Nonstandard TOC Applications Buy-in How Practitioners Can Get Started How Researchers Can Contribute What Students Should Know What Is Customer Support (Also Known as Technical Support)? Steady Erosion of Income in the CS Area The Warranty Trap A—B A—C B—D C—D′ D—D′ Differential Pricing Basic Services Extended Basic Services Limited FSE Visits Extended FSE Visits Complementing FSE Visits Complementing Extended FSE Visits Parts Services Important Notes Value-Added Services Launching of Expert Systems Third-Party Maintenance (or TPM) Installations, Implementations, and Projects Key Decisions Policies and Measurements Theory of Constraints Lean Six Sigma Patients’ Perspective Doctors’ Perspective Insurers’ Perspective Hospitals’ Perspective Business Owners’ Perspective Governments’ Perspective Elaborating on the 5FS Parallel Assumptions Necessary Assumptions Sufficiency Assumptions An Example Steps to success for a private, academic, or government-run dental practice Why Healthcare Systems Need to Improve The Goal of Healthcare Where to Start: Government or Facility? The Organic Nature of Healthcare Facilities The Human “Engine of Healthcare” The Constantly Evolving Workforce The Reality of Healthcare Current Problem Solving Techniques Adapting Industry’s Solutions for Healthcare Where Should the Constraint Reside in Healthcare? Starting an Organization on a Process of Ongoing Improvement Providing a Safe Platform and an Effective Mechanism Building the Current Reality Tree (CRT) of a Facility Training the Process Units Providing a Knowledge Base for Achieving the Goal Now Providing the Knowledge Base for Achieving the Goal in the Future Addressing the New Core Problem Leaving a TOC Legacy Undesirable Effects of Complex Organizations The Core Conflict for Complex Organizations What the Market Expects (A ← B) Adding Capabilities (B ← D) Predictable Response to Customers (A ← C) Avoiding Disruptions (C ← D) Doing Both (D ←→ D) Concepts in Organization Complexity Categories of Activities Flows in Complex Organizations Flow Control with Critical Chain The Definition of the Common Simple Measure Using TDD: An Example A Closer Look at the Distribution Department Units to Which TDD Applies: Degree of Impact on Throughput Alternatives for When TDD Does Not Seem to Fit Inventory Dollar Days Summary of Measures Focusing for Balance (and Changing the Culture of the Company) The Usefulness of Dollar Day Measures in General Tools for Resolution Controlled Resource Allocation The Value of Everyone Measured by the Same Simple Measures Leadership Certification The Top of the VV S&T Trees Level 2 of the Retailer S&T Tree Overview of Level 2 of VV S&T Trees Level 3 of the Retailer S&T Tree General Overview of the VV S&T Tree Structure Levels 4 and 5 of the Retailer S&T Tree Need for Lower Levels of an S&T Tree How the S&T Tree Relates to Other Thinking Process Tools of TOC Consumer Goods (CG) S&T Tree Reliable Rapid Response S&T Tree Projects S&T Tree Comparison of RRR and Project S&T Trees Pay per Click S&T Tree Categories of Variability A Closer Look at Variability Different Tools for Different Types of Variability The TOC Approach Introduction Some History and What We Learned What Change was Needed How to Cause the Change What We Did to Implement the Change “Oh Canada” Results after Six Months Introduction What Do We Need To Change? What Do We Change To? How Do We Cause the Change? Results Introduction The Analysis Results after Two Years Background: Father-Son Dilemmas A Review of Constructing the Evaporating Clouds College Student Dilemma (Undergraduate) EC of the Classic Dilemma of White-Collar Burnout Using Buffer Management to Increase Your Effectiveness Sheila’s Story Personal Productivity Sheila’s Epilogue Our Epilogue on Sheila

Section I What Is TOC?

1 Introduction to TOC—My Perspective Eliyahu M. Goldratt

Focus Constraints and Non-Constraints Measurements The Goal and The Race Other Environments The Thinking Processes The Market Constraint Capitalize and Sustain Ever Flourishing Strategy and Tactic Trees New Frontiers References About the Author

Section II Critical Chain Project Management

2 The Problems with Project Management Ed Walker

Introduction Purpose and Organization of the Chapter Traditional Planning and Control Mechanisms in Project Management Brief Review of Project Management Literature Development of Guidelines A Brief Over view of Critical Chain Project Management Brief Review of Critical Chain Literature Summary and Conclusions References About the Author

3 A Critical Chain Project Management Primer Charlene Spoede Budd and Janice Cerveny

Introduction Key Elements of Critical Chain Scheduling a Single Project Critical Chain Scheduling Scheduling Projects in Multi-Project Environments Project Control: The Power of Buffer Management Project Budgeting Project Reporting Causing the Change: Behavioral Issues, Management Tactics, and Implementation Summary References About the Authors

4 Getting Durable Results with Critical Chain—A Field Report Realization Technologies, Inc.

Background Purpose and Organization Recap of Critical Chain Practical Challenges in Implementing Critical Chain Step-By-Step Process for Implementing Critical Chain Lessons Learned Frequently Asked Questions Summary References About the Author

5 Making Change Stick Rob Newbold

Introduction The Uptake Problem The Cycle of Results (CORE) Implementation Planning Summary References About the Author

6 Project Management in a Lean World—Translating Lean Six Sigma (LSS) into the Project Environment AGI-Goldratt Institute

Introduction: It’s a Lean World What Is the Project Environment’s Point of View to Being Leaned? What Do We Improve? The Five Principles of Lean Applied to the Project Environment Leaning Traditional Project Management References About the Author

Section III Drum-Buffer-Rope, Buffer Management and Distribution

7 A Review of Literature on Drum-Buffer-Rope, Buffer Management and Distribution John H. Blackstone Jr.

Introduction Literature on Precursors of TOC and DBR Literature on DBR Scheduling Special Cases Buffer Management Literature TOC and Distribution Problems with DBR Summary and Conclusions References About the Author

8 DBR, Buffer Management, and VATI Flow Classification Mokshagundam (Shri) Srikanth

Introduction Managing Flow—Planning and DBR The DBR System Managing Flow with DBR—An Example Managing Flow—Controlling Execution and Buffer Management Complex Production Environments and a Classification Scheme V, A, T, and I Flows—Descriptions and Examples Summary References About the Author

9 From DBR to Simplified-DBR for Make-to-Order Eli Schragenheim

Introduction A Historical Background and Perspective Three Views on Operations Planning and Execution Challenging the Traditional DBR Methodology Outlining the Direction of the Solution Where S-DBR Fits Nicely Implementation Issues and Processes Looking Ahead to MTS Suggested Reading References About the Author

10 Managing Make-to-Stock and the Concept of Make-to-Availability Eli Schragenheim

Introduction Why Is a Special Methodology for MTS Required? What to Do? The Direction of the Solution Monitoring the Target Level Size—Dynamic Buffer Management The Role of Protective Capacity and the Usefulness of Maintaining a Capacity Buffer Generic Issues in MTA Implementation Issues References Suggested Reading About the Author

11 Supply Chain Management Amir Schragenheim

Introduction: The Current Practice of Managing Supply Chains Problems with the Current System The TOC Way—The Distribution/Replenishment Solution Some of the Finer Points in Managing the TOC Distribution/Replenishment Solution Managing Seasonality in the TOC Distribution/Replenishment Model Implementing the TOC Distribution/Replenishment Model—How Can Software Help and Is It Really Needed? Testing the Solution on a Smaller Scale Managing the TOC Buy-in Process Actual Results of the TOC Distribution/Replenishment Solution Summary References Recommended Reading About the Author

12 Integrated Supply Chain Chad Smith and Carol Ptak

Introduction Identifying the Real Problem—Rethinking the Scope of Supply Chain Management A Brief History of MRP Can MRP Meet Today’s Challenge? The MRP Conflict Today The MRP Compromises Actively Synchronized Replenishment—the Way Out of MRP Compromises Case Studies Summary References About the Authors

Section IV Performance Measures

13 Traditional Measures in Finance and Accounting, Problems, Literature Review, and TOC Measures Charlene Spoede Budd

Introduction Traditional Cost Accounting and Business Environment Accounting’s Response to a 20th Century Changing Environment TOC Approach to Planning, Control, and Sensitivity Analysis Possible Explanations for the Lack of TOC Literature in Accounting and Finance Future TOC Accounting/Finance Research Needs Summary and Introduction of Remaining Chapters in This Section References About the Author

14 Resolving Measurement/Performance Dilemmas Debra Smith and Jeff Herman

Introduction Global Metrics Local Metrics Feedback and Accountability Systems A Case Study Summary References About the Authors

15 Continuous Improvement and Auditing Dr. Alan Barnard

Introduction Why Change? What to Change? To What to Change? How to Cause the Change? Summary of Continuous Improvement and Auditing the TOC Way References About the Author Appendix A—Continuous Improvement Opportunity Templates

16 Holistic TOC Implementation Case Studies Dr. Alan Barnard and Raimond E. Immelman

Introduction Holistic Implementation of TOC in the Public Sector Holistic TOC Implementation in the Private Sector Recommendations and Summary References About the Authors

Section V Strategy, Marketing, and Sales

17 Traditional Strategy Models and Theory of Constraints Marjorie J. Cooper

Introduction Theories of Business Strategy Marketing and Strategy Sales and Strategy Challenges for Strategy and Execution TOC Contributions Future Research Opportunities References About the Author

18 Theory of Constraints Strategy Gerald Kendall

Introduction—What Differentiates a TOC Strategy? Chapter Overview Definitions and Foundations of TOC Strategy Overview of TOC Strategy Applications in Manufacturing, Projects, and Consumer Goods Distribution/Retail Organizations Four Generic Prerequisites/“Injections” for a Lasting Competitive Edge Desirable Effects of a Good Strategy Two Forms of Strategy and Tactics—TP and S&T Trees Integrating Other Methodologies Such as Lean and Six Sigma Dealing with Human Behavior in a Strategy Summary References About the Author

19 Strategy H. William Dettmer

The Popular Conception of Strategy The System Concept A Vertical Hierarchy A Common Denominator A Whole-System View The OODA Loop Strategy as a Journey Orientation and Observation Decision and Action “Pro-Acting” Rather than Reacting Fast OODA Loop Cycles Summarizing Boyd The Logical Thinking Process The Intermediate Objectives Map Constraint Management Model: A Synthesis of TOC and the OODA Loop The Role of the LTP in the CMM What about Steps 6 and 7? Summary and Conclusion References About the Author

20 The Layers of Resistance—The Buy-In Process According to TOC Efrat Goldratt-Ashlag

Introduction The Layers of Resistance to Change Disagreement on the Problem Disagreement on the Solution Disagreement on the Implementation Sense of Ownership: The Key to True Buy-In Bottom Line References About the Author

21 Less Is More—Applying the Flow Concepts to Sales Mauricio Herman and Rami Goldratt

Introduction Improving Flow Preventing Overproduction Local Efficiencies Must Be Abolished A Focusing Process Must Be in Place Summary Addendum References About the Authors

22 Mafia Offers: Dealing With a Market Constraint Dr. Lisa Lang

Introduction: What Is a Mafia Offer? Do You Have a Market Constraint? Developing a Mafia Offer Custom Label Printer—An Example The Test—Is It a Mafia Offer? What Did It Take to Make the Offer? A Mafia Offer Is NOT Where to Start? Sustaining the Advantage and the Offer It’s a Business Deal The Psychology of Delivering a Mafia Offer Can You Create a Mafia Offer? The Templates Summary References About the Author

Section VI Thinking Processes

23 The TOC Thinking Processes Victoria J. Mabin and John Davies

Introduction The Nature, Development, and Use of the TOC TP The Nature of Other Approaches to Problem-Solving and Decision Making Lessons for TOC from the Literature The Nature and Use of the TOC Thinking Processes Revisited Summary References About the Authors

24 Daily Management with TOC Oded Cohen

Introduction—Purpose of the Chapter Solving Daily Problems From a Problem to the Solution Implementation Conclusion—Problem Solving the TOC Way References About the Author

25 Thinking Processes Including S&T Trees Lisa J. Scheinkopf

Introduction: Anybody Can Be a Jonah! The Basic Building Block—Cause-and-Effect Logic Basic Terms and Mapping Protocol Tools for Daily Decision Making and Problem Solving Negative Branch Reservation (NBR) Evaporating Cloud (EC) The Integrated TOC Thinking Processes What to Change? The Bank Case: What to Change, Snowflake Approach To What to Change How to Cause the Change The Strategy & Tactic Tree Chapter Wrap-Up References About the Author Appendix B: Categories of Legitimate Reservation 1

26 TOC for Education Kathy Suerken

Why Change? What to Change? What to Change to? How to Cause the Change? A Process of Ongoing Improvement References About the Author

27 Theory of Constraints in Prisons Christina Cheng

Introduction What To Change? What to Change to? How to Effect the Change? Results Follow-on Implementations Future Recommendations Summary and Conclusion About the Author

Section VII TOC in Services

28 Services Management Boaz Ronen and Shimeon Pass

Introduction Survey of Service Organizations TOC Literature Brief Assessment of Service Management TOC Concepts and Tools for Service Organizations How to Implement the Change? The Remaining Chapters in This Section References About the Authors

29 Theory of Constraints in Professional, Scientific, and Technical Services John Arthur Ricketts

Introduction Background What to Change What to Change to How to Cause the Change Summary References About the Author

30 Customer Support Services According to TOC Alex Klarman and Richard Klapholz

Introduction—The Need for Change What to Change What to Change to The Array of Service Offerings Other Service Offerings How to Implement the Change Summary References About the Authors

31 Viable Vision for Health Care Systems Gary Wadhwa

Introduction The Tools for Improvement Undesirable Effects of the Current Health Care System Defining the Goal of the Health Care System Improving Quality and Quantity of Patient Flow through Health Systems Thinking Processes for Identifying Root Cause of Physical Constraints to the Flow of Patients Throughput Accounting for Performance Measurement and Decision Making in Health Care Strategy and Tactic Tree to Implement and Achieve the Viable Vision A Case Study of VV Success General Discussion References About the Author Appendix A: Strategy and Tactic Tree for Viable Vision Addendum: Excerpt from the Book Vision for Successful Dental Practice by Gerry Kendall and Gary Wadhwa

32 TOC for Large-Scale Healthcare Systems Julie Wright

Introduction Why Change What to Change What to Change to How to Cause the Change The Process of Ongoing Improvement Summary Proof of Concept References About the Author

Section VIII TOC in Complex Environments

33 Theory of Constraints in Complex Organizations James R. Holt and Lynn H. Boyd

Overview Definition of Complexity Major Problems with Complex Organizations The Direction of the Solution Additional Understanding of Complex Organizations Finding an Injection Breakthrough Injection A Breakthrough Injection A Breakthrough Injection Is Critical, but It Is Rarely Sufficient Challenge of the Future Summary References About the Authors

34 Applications of Strategy and Tactics Trees in Organizations Lisa A. Ferguson, PhD

Introduction On Becoming an Ever-Flourishing Organization The Basic Structure of an S&T Tree The Retailer S&T Tree Details Regarding the Structure of an S&T Tree Key Concepts Regarding Creation of S&T Trees The Other Four Generic VV S&T Trees Comparison of S&T Tree to Key Literature on Strategy Execution of the S&T Tree Summary and Discussion References About the Author

35 Complex Environments Daniel P. Walsh

Introduction Brief Background Guiding Strategies Throughput Accounting A Holistic View Tools Selection Defining the System Applications Summary and Discussion References About the Author

36 Combining Lean, Six Sigma, and the Theory of Constraints to Achieve Breakthrough Performance AGI-Goldratt Institute

Introduction Lean Six Sigma Theory of Constraints (TOC) Discords that can Block the Effective Integration of TOC and Lean Six Sigma (LSS) Work Behaviors Material Release Replenishment System TOCLSS—Fully Integrated TOC, Lean, and Six Sigma References About the Author

37 Using TOC in Complex Systems John Covington

Introduction We Need More Sucker Rods! Have You Really Defined the System? Where is the Constraint in Disciple Making? Summary Reference About the Author

38 Theory of Constraints for Personal Productivity/Dilemmas James F. Cox III and John G. Schleier, Jr.

Introduction: A Status Report Resolving Chronic Conflicts and Developing Win-Win Solutions Personal Productivity Dilemma—Where to Spend Your Time? Personal Productivity—Establishing Goals, Strategies, Objectives, Action Plans, and Performance Measures What to Change—How Do You Currently Use Your Time? Developing a Detailed Implementation Plan to Accomplish Your Goals and Objectives Using the Thought Processes to Achieve Life Goals Summary References About the Authors Selected Bibliography of Eliyahu M. Goldratt James F. Cox III and John G. Schleier, Jr Books Theory of Constraints Journal Articles Journal/Magazine Articles Industry Week Late Night Discussion Series Management Skills Workshop Series (Workbooks) Video Movie/Presentations Goldratt Program Series (Video/DVD) Self-Learning Computer Education Software Programs Necessary and Sufficient Series TOC Insights Series. 4 Self-learning Computer Software Chapters in Books Conference Proceedings/Video Proceedings/Presentations Keynote Presentations/Video Conference Presentation The Goldratt Webcast Series Strategy and Tactic Trees POOGI Forum Letter Series Plays Commercial Software Index

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