...high setup times result in higher utilization. b. Processes are generating output throughout the entire setup process. c. A machine used in a line process would probably have fewer setups than a batch process. d. A TOC analyst would not be concerned with setup times on non-bottleneck machines. Answer: d 4. Which of the following is one of Dr. Eli Goldratt's rules of production scheduling for optimized production technology? a. Utilization and activation of a resource are not the same b. Do not allow bottlenecks to govern the flow of the line c. An hour lost at a bottleneck saves an hour for the entire system d. Balance the capacities, not the flows Answer:a 5. Which of the following is one of Dr. Eli Goldratt's rules of production scheduling for optimized production technology? a. Do not balance capacity, balance the flow b. If you lose an hour at a bottleneck it is better than making scrap c. Do not allow bottlenecks to govern the flow of the line d. An hour saved at a bottleneck operation is a mirage Answer:a 6. Which of the following is a “focusing step” of Dr. Eli Goldratt's theory of constraints? a. Reduce system constraints b. Reinforce system constraints c. Support system constraints d. Identify system constraints Answer: d 7. According to the theory of...
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...[22:02:48] simas: Goal 1 [22:02:51] simas: Goal 2 [22:02:55] simas: and Goal 3 [22:02:59] simas: :) by eli goldratt [22:03:13] simas: than [22:03:17] simas: The choice [22:03:20] simas: by the same author [22:03:25] simas: :) a bit much harder [22:03:26] simas: read [22:03:35] simas: actually not an easy [22:03:36] simas: way [22:03:43] simas: read [22:03:47] simas: not way [22:03:56] simas: but still interesting [22:04:15] simas: Funky business [22:04:21] simas: i think there are 2 books [22:04:23] simas: funky business [22:04:26] simas: and funky business 2 [22:04:27] simas: :D [22:04:40] simas: han how to clone a blonde i think its called this way [22:04:45] simas: tipping oint [22:04:47] simas: point [22:05:05] Lusya: oki doki, these all sounds grrrreat! [22:05:22] simas: Who moved my chease [22:05:25] simas: ? [22:05:41] simas: Than [22:06:02] simas: Purple cow [22:06:03] Lusya: you read all of the above?! [22:06:07] simas: yeah [22:06:13] simas: maybe 1 or 2 books i havent [22:06:22] simas: dont remmber need to re read [22:06:24] simas: :D [22:06:29] Lusya: wow [22:06:45] Lusya: book possessed u r lol [22:06:54] simas: I read them during the years [22:06:55] simas: :)) [22:06:59] simas: soo not all now [22:07:00] simas: :)) [22:07:02] simas: but yeah [22:07:05] simas: let me se there are more [22:07:15] Lusya: very well done man, no seriously [22:11:41] simas: Now [22:11:42] simas: a [22:11:46] simas: list of books i did not read ...
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...I. “The Goal” is a novel written by Eliyahu Goldratt and Jeff Cox. The novel introduces the Theory of Constraints. The Theory of Constraints is defined as a body of knowledge which helps in understanding the way a system functions and identifying those elements which constrain the system from achieving its goals (<http://tocjonah.blogspot.com.au/>, January 2006). Though the book is about an organization involved in the manufacturing process, TOC applies to any business, and any industry (<http://www.toc-lean.com/Goal_Overview.htm>, Hutchen). These “constraints” can be internal such as a process, technology, people, or external such as the market(<http://en.wikipedia.org/wiki/Theory_of_constraints>) The story is about a company called UniCo, a manufacturing company, with Alex Rogo as a plant manager. Things are not going very smoothly at UniCo. They have not been making money for months and are weeks behind schedule on certain orders. Bill Peach, Alex’s superior arrives at the plant one day and breaks the following news to Alex: he had three months to turn things around or the plant would shut down. Things have not been going so well at home either. Spending long hours at the plant and constantly thinking about issues, has caused a rift in his home life. His wife eventually moves out, leaving Alex to take care of his two kids. One day, he ran intoa former teacher named Jonah. The meeting introduced him to another way of thinking about the problems that UniCo...
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...Captured by Plamen T. THE GOAL A Process of Ongoing Improvement THIRD REVISED EDITION By Eliyahu M. Goldratt and Jeff Cox With interviews by David Whitford, Editor at Large, Fortune Small Business North River Press Captured by Plamen T. Additional copies can be obtained from your local bookstore or the publisher: The North River Press Publishing Corporation P.O. Box 567 Great Barrington, MA 01230 (800) 486-2665 or (413) 528-0034 www.northriverpress.com First Edition Copyright © 1984 Eliyahu M. Goldratt Revised Edition Copyright © 1986 Eliyahu M. Goldratt Second revised Edition © 1992 Eliyahu M. Goldratt Third Revised Edition © 2004 Eliyahu M. Goldratt All rights reserved. No part of this book may be reproduced or utilized in any form or by any means, electronic or mechanical, including photocopying, recording, or any information storage retrieval system, without permission in writing from the publisher Manufactured in the United States of America Library of Congress Cataloging-in-Publication Data Goldratt, Eliyahu M., 1948The goal: a process of ongoing improvement I. Coxjeff, 1951-. II. Title PR9510.9.G64G61986 823 ISBN: 0-88427-178-1 86-12566 Captured by Plamen T. 1 INTRODUCTION The Goal is about science and education. I believe that these two words have been abused to the extent that their original meanings have been lost in a fog of too much respect and mystery. Science for me, and for the vast majority of respectable...
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...The Theory of Constraints is the name given to a series of decision making techniques first created by Dr. Eliyahu M. Goldratt beginning around 1980 and later applied and augmented by a number of others. The Theory of Constraints has been applied to production planning, production control, project management, supply chain management, accounting and performance measurement, and other areas of business as well as such not-for-profit facilities as hospitals and military depots. It has also been applied to decision making in educational settings. Dr. Goldratt holds a Ph. D. in physics; he has often stated that in developing the Theory of Constraints he is applying the techniques of the hard sciences, such as cause-and-effect analysis, to soft sciences such as business management. The Theory of Constraints states that constraints determine the performance of a system. A constraint is anything that prevents a system from achieving a higher performance relative to its goal. A system is any collection of interconnected parts sharing a common goal. The Theory of Constraints was first applied to business systems. Dr. Goldratt defines the goal of a for-profit business as to make more money now and in the future. This definition is in keeping with the traditional definition of the goal of a business which is to maximize the owners’ or stockholders’ wealth. Constraints may be resource constraints such as a person or department that cannot keep up with market demand. If this department could...
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...Captured by Plamen T. THE GOAL A Process of Ongoing Improvement THIRD REVISED EDITION By Eliyahu M. Goldratt and Jeff Cox With interviews by David Whitford, Editor at Large, Fortune Small Business North River Press Captured by Plamen T. Additional copies can be obtained from your local bookstore or the publisher: The North River Press Publishing Corporation P.O. Box 567 Great Barrington, MA 01230 (800) 486-2665 or (413) 528-0034 www.northriverpress.com First Edition Copyright © 1984 Eliyahu M. Goldratt Revised Edition Copyright © 1986 Eliyahu M. Goldratt Second revised Edition © 1992 Eliyahu M. Goldratt Third Revised Edition © 2004 Eliyahu M. Goldratt All rights reserved. No part of this book may be reproduced or utilized in any form or by any means, electronic or mechanical, including photocopying, recording, or any information storage retrieval system, without permission in writing from the publisher Manufactured in the United States of America Library of Congress Cataloging-in-Publication Data Goldratt, Eliyahu M., 1948The goal: a process of ongoing improvement I. Coxjeff, 1951-. II. Title PR9510.9.G64G61986 823 ISBN: 0-88427-178-1 86-12566 Captured by Plamen T. 1 INTRODUCTION The Goal is about science and education. I believe that these two words have been abused to the extent that their original meanings have been lost in a fog of too much respect and mystery. Science for me, and for the vast majority of respectable scientists, is not about...
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...* John Blackstone, University of Georgia The Theory of Constraints is the name given to a series of decision making techniques first created by Dr. Eliyahu M. Goldratt beginning around 1980 and later applied and augmented by a number of others. The Theory of Constraints has been applied to production planning, production control, project management, supply chain management, accounting and performance measurement, and other areas of business as well as such not-for-profit facilities as hospitals and military depots. It has also been applied to decision making in educational settings. Dr. Goldratt holds a Ph. D. in physics; he has often stated that in developing the Theory of Constraints he is applying the techniques of the hard sciences, such as cause-and-effect analysis, to soft sciences such as business management. The Theory of Constraints states that constraints determine the performance of a system. A constraint is anything that prevents a system from achieving a higher performance relative to its goal. A system is any collection of interconnected parts sharing a common goal. The Theory of Constraints was first applied to business systems. Dr. Goldratt defines the goal of a for-profit business as to make more money now and in the future. This definition is in keeping with the traditional definition of the goal of a business which is to maximize the owners’ or stockholders’ wealth. Constraints may be resource constraints such as a person or department that cannot keep up...
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...The Theory of Constraints The Theory of Constraints (TOC) is a novel approach to managing operations, developed in the early 1980s by Dr. Eli Goldratt, a Ph.D. physicist from Israel. In the early 1980s, Goldratt developed a computer software package called Optimized Production Technology (OPT), for scheduling complex manufacturing systems. The package used the linear programming technique. However, customers were never told precisely how it worked. So, although copies of OPT were sold to a number of companies, the software was not exactly a thumping success, probably because managers will not use a tool they do not understand. To advertise his ideas more effectively, in 1984 Goldratt wrote The Goal, a book that translated the general logic embedded in OPT software into the fictional account of a plant manager who solves production, quality, and delivery problems.1 To further develop the concepts introduced in The Goal, Goldratt founded the Avraham Y. Goldratt Institute, an institute catering to educating managers on the principles and concepts of TOC. Many managers and consultants have since adopted these principles, modified them, and applied them to a variety of settings. The Cost World Perspective The conventional approach to managing a firm is based on the "cost world" perspective. With this perspective, cost control is a key measure that drives decision making. For instance, the cost world perspective could block a push to achieve a competitive edge...
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...The aim of every organisation is to provide good quality services and make profit. In other to do this, organisation need the supply chain management pattern in delivering good quality and effective service in each different segments. Firstly supply chain management can be defined as the management of the interconnection of organisation that relate to each other through upstream linkage between the different processes that produce value in the form of product and services to the ultimate consumers.(Slack et al. 2004, p. 445). This essay will basically expanciate the pattern which organisations render services along with the theories. Now we understand that supply chain management is the connection or linkage between the different processes or plan to organise the various stages of proving goods and services in an organisation. To identify the performance used for supply chain management, there are several approaches adopted to deal with this issue in organisation the triple bottom line which consist of the social bottom line, the environmental bottom line, and the economic bottom line (Slack et al. 2013, p. 39). The social bottom line illustrate the usefulness of the relationship between the society and business performance and also businesses should responsible for the impact they have on the society in other to satisfy the society co-operate social responsibility (csr). The environmental bottom line; organisations also taking part in the environmental sustainability by...
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...ABSTRACT Critical Chain Project Management: An Overview Christopher Aitken Director: Elisabeth Umble, Ph.D. The purpose of this thesis is to introduce to the reader Critical Chain Project Management, which is the application of the Theory of Constraints (TOC) process to project management. Eli Goldratt describes the process in the book Critical Chain. Applying Critical Chain protocol will improve the projects due date performance and the quality of deliverables, whatever the project or circumstance. To prove these claims this document explores specific case studies of recent implementations of Critical Chain. It then goes back to look at the history of project management and some of the innovations that led to Critical Chain, including an in depth look at Theory of Constraints. It concludes by exploring the TOC approach to causing change in thinking processes and how this would be done for Critical Chain. This document is written to be accessible to any reader regardless of the level of prior exposure to the Theory of Constraints. APPROVED BY DIRECTOR OF HONORS THESIS: ______________________________________________________ Dr. Elisabeth Umble, Department of Management APPROVED BY THE HONORS PROGRAM: __________________________________________________ DATE: _______________________ CRITICAL CHAIN PROJECT MANAGEMENT: AN OVERVIEW A Thesis Submitted to the Faculty of Baylor University In Partial Fulfillment of the Requirements for the Honors Program By Christopher...
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...CRITICAL CHAIN METHOD Critical Chain Project Management (CCPM) is a methodology for planning, executing and managing projects in single and multi-project environments. Critical Chain Project Management was developed by Dr Eli Goldratt and was first introduced to the market in his Theory of Constraints book “Critical Chain” in 1997. It was developed in response to many projects being dogged by poor performance manifested in longer than expected durations, frequently missed deadlines, increased costs in excess of budget, and substantially less deliverables than originally promised. Problems with traditional project management When planning for an upcoming project, estimates for task durations are required. In order for the plan to be treated as realistic, much time is spent ensuring estimates are accurate. Accurate estimates give us increased probability and high-confidence in the task completing on time. This allows additional safety time beyond the work content time required to be embedded within the task duration. The more safety in a task the more there is a tendency to behave in the following ways: * Not starting the task until the last moment (Student Syndrome) * Delaying completion of the task (Parkinson’s Law) * Murphy’s Law Student Sydnrome: The student syndrome is a form of procrastination, but it usually includes more of a plan and sincerely good intentions. For example, if a student or group of students goes to a professor and asks for an extension...
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...project characteristics into the formulation. Specifically, one of them incorporates resource tightness while the other uses network complexity. Both methods are tested and compared to two commonly suggested methods in the literature, the cut and paste method and the root square error method, as well as using no buffer as a benchmark. The comparison is done by means of a simulation study using the Patterson data set. The test results indicate that both of the suggested methods generate smaller buffer sizes while providing sufficient protection against delays in project completion time. Ó 2004 Elsevier B.V. All rights reserved. Keywords: Project scheduling; Critical chain; Feeding buffers; Buffer sizing methods 1. Introduction In his 1997 book, Goldratt (1997) introduced the critical chain idea. It received considerable attention among practitioners as a means for resource scheduling in projects and several books, articles, and even software packages (ProChainÒ), have already appeared on the subject (Herroelen and Leus, 2001; Leach, 2000; Newbold, 1998). The critical chain is ‘‘the set of tasks which determines overall project duration, taking into account both precedence and...
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...Week 1 * For which key organizational functions are tasks and responsibilities identified for all the steps of the generic product development process? marketing, design, manufacturing, other * A service process design flowchart is referred to as a service blueprint to emphasize what? The importance of process design * If an automotive service center has an issue with a car not being clean when returned to a customer, the poka-yoke corrective action might include what? An inspection by the person returning the car before the car is seen by the customer. * Using a project layout for building an aircraft, why would you want to place rivets close to or even in the fuselage? Rivets are used consistently throughout the construction process * Permeable systems are characterized by being penetrable by customers via what two forms of contact? Phone and face-to-face contact * What is a company trying to optimize in the most common approach to developing a workcenter layout? Movement of material * Even though they use different models, both the Ritz-Carlton Hotel Group and Nordstrom Department Stores are known for what? The personal attention they provide their customers * Why is the planning phase often referred to as Phase 0 (Zero) of the generic product development process? This phase happens before the project is approved * Why do many customers like the self-service approach to service design? It puts the customer in control * Some...
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...CHAPTER 15 DETAILED SCHEDULING AND CONTROL PROCESSES IN SYNCHRONOUS ENVIRONMENTS WITH TOC Integrated Operations Management: A Supply Chain Perspective, 2nd ed., Hanna & Newman, Thomson/South-Western © 2007 1 INTRODUCTION • Asynchronous value-adding systems: allow separate value-adding activities to be scheduled independently • Bottleneck: any resource that has insufficient capacity to satisfy requirements • Synchronous value-adding systems: require that the timing of value-adding activities be coordinated (synchronized) • The presence of a bottleneck requires that the timing of value-adding activities be coordinated (i.e. synchronized) Integrated Operations Management: A Supply Chain Perspective, 2nd ed., Hanna & Newman, Thomson/South-Western © 2007 2 TOC: THE MANAGEMENT PROCESS 1. Identify system constraints 2. Determine how to exploit the system constraints 3. 3 Subordinate every other decision to the decision made in step 2 4. Elevate the system constraint 5. If the constraint has changed, go back to step 1 Integrated Operations Management: A Supply Chain Perspective, 2nd ed., Hanna & Newman, Thomson/South-Western © 2007 3 1 A SIMPLE SCREEN-PRINTING VALUE-ADDING SYSTEM Integrated Operations Management: A Supply Chain Perspective, 2nd ed., Hanna & Newman, Thomson/South-Western © 2007 4 SCREEN-PRINTING EXAMPLE: SALESPERSON’S PERSPECTIVE • Sales commission is 7–10% of sales: – sell lots of expensive items to new customers – results in selling...
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...Constraint Management at UniCo: Analyzing “The Goal” as Fictional Case Study Abstract As a fictional case study, Eliyahu Goldratt’s novel about manufacturing, “The Goal: A Process of Ongoing Improvement,” presents a constraint-focused approach to production management. As a novel, the book does not emphasize the quantitative details of the plant improvements. However, a great amount of information about the plant is spread throughout the book. By collecting and analyzing this data, a concrete picture may be developed of the plant’s capacity and its improvements, which can greatly help the book’s readers understand and evaluate the cumulative impact from the plant’s “process of ongoing improvement.” Keywords: Production planning, Theory of constraints, Drum buffer rope 1. Introduction: The Goal as Fictional Case Study Eliyahu Goldratt’s manufacturing novel The Goal: A Process of Continuous Improvement has inspired countless professionals in production (and many other fields (Whitford, 2004)) to embark on their own efforts of continuous improvement. As Rand (1986) writes, “It’s a novel, but it’s also a manufacturing text-book, and it’s good on both accounts.” Many reviewers have agreed The Goal is an easy-to read way to get an introduction to production realities (Belis, 1994, The Economist 1995, Dani 2006, Rand 1986). However, no one has taken a detailed look at the numbers presented in the book as a fictional case study. The concept of drum-buffer-rope (DBR) production...
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