What is This Thing Called Theory of Constraints and How Should It Be Implemented?

Software development is much like discrete manufacturing--as I learned from this great book. It's a tiny bit cheesy but the writing is ultimately effecting in cementing strong lessons for project and corporate management.

Commonsense is said to be not very common! Hence this book and the theory that can be put to use to achieve dramatic results. One question that a reader is likely to encounter in reading this is whether to read "The Goal" before reading this book. I feel that it does not matter as long as you finished reading both. In fact Mr Goldratt relies heavily on several chapters of "The Goal" to illustrate the theory.Whatever the nature of business, Throughput, Operating Expenses and Inventory are the parameters on which managers grabble with and try to gain control. Theory of Constraints (TOC) puts all these in an excellent framework, defines their relationship and suggests methodologies for achieving globally optimal solutions for the Organization.Excellent reading ; revisit this book when in doubt!

Goldratt writes about his Theory of Constraints - and how it is far more than just a shop floor "bottleneck" optimization program. TOC is really about making decisions in this fast-paced, ever-changing world. A "Jonah" knows that quick fixes lead to "chasing one's tail". Insight comes from recognizing that "Current Reality Trees" can be made that get at the root of your problems ("Undesirable Effects"). What are the assumptions that keep you in the rat race? How can you affect breakthrough gains in "Throughput", without much "Inventory" and keeping a lid on "Operating Expenses". Goldratt offers a surprising clear "thinking process" that is applicable to all areas of our lives. Objectivity and a clear head prove that "cost accounting" and "local optima" are short sighted. TOC is a breath of fresh air that all managers should read - especially those at the top. Join the counter-revolution in management theories. Check out "It's Not Luck" next, and then "Critical Chain" in the series...

Of particular interest to me was the focusing process-- the (1) What to change, (2) To what to change to and (3) How to cause the change.The detailed analysis and ranking of Throughput (T), Operating Expense (OE) and Inventory (I) was a good, practical summary of the fundamentals of TOC. The last chapter effectively integrates JIT, TQM and TOC, with TOC emerging as the "verbalizer" of the other two improvement methods. Another excellent piece of work by Dr. Goldratt!

If you read books to find a nugget of very useful information, this is a very good book to help understand the importance of finding and focusing on the constraining factor of any organization. I have read several of Goldratt's books, and found this one to be quite helpful.