Goldratt’s theory of constraints

Dettmer, H. William, Goldratt’s theory of constraints:  A systems approach to continuous improvement. Milwaukee, Wisconsin: ASQ Quality Press. 2007
ISBN 0-87389-370-0

Explanation of Theory of Constraints (TOC)



Chapter 1. Introduction to the theory of constraints

Introduces base ideas and terminology used in TOC: goals, system constraints. TOC principles:

• Systems as chains,
• Local vs. system optimum,
• Cause and affect,
• Undesirable effects and core problems,
• Solution deterioration,
• Physical vs. Policy constraints,
• Ideas NOT solutions

Focusing steps of TOC:

• Identify system constraints
• Decide how to exploit the constraint
• Subordinate everything else
• Elevate the constraint
• Go back to step 1

Throughput, inventory and operating expense.

Chapter 2. Categories of legitimate reservation

Description of categories of legitimate reservation:

• Clarity
• Entity existence
• Causality existence
• Cause insufficiency
• Additional cause
• Cause-effect reversal
• Predicted effect existence
• Tautology

Chapter 3. Current reality tree

Building a current reality tree:

1. Identify your span of control and sphere of influence
2. Create a list of undesirable effects
3.  Begin the current reality tree
4. Connect the first two UDEs (undesirable effects)
5. Connect other UDEs
6. Build the cause-and-effect chain downward
7. Redesignate UDEs
8. Identify root causes and the core problem
9. Look for V-shaped or missing connections
10. Decide which root cause(s) to attack

Chapter 4. Conflict resolution diagram

Provide definition and approaches to build conflict resolution diagrams.

Chapter 5. Future reality tree.

Provide definition and steps to build future reality tree:

1. Gather all necessary information and materials
2. Formulate desired effects
3. Add the injection(s)
4. Fill in the gaps
5. build in positive reinforcing loops
6.  Look for negative branches
7. Develop the negative brunch
8. Identify the "turning point" of negative branh
9. Develop injections to break assumptions
10. Validate the injection
11. Incorporate the "branch-trimming" injection into the future reality tree
12. Scrutinize the future reality tree

Chapter 6. Prerequisite tree.

Provide definition and steps to build prerequisite tree:

1. Create a list
2. make two columns
3. List the obstacles
4. Develop intermediate objectives
5. Refine the completed list
6. Begin the prerequisite tree
7. Create the obstacle-IO(intermediate objective) pairs
8. Array the obstacle-IO pairs
9. Time-sequence the obstacle-IO pairs
10. Fill in the gaps
11. Remove dotted lines
12. Look for horizontal connections
13. Make the final connections
14. Review the modified tree

Chapter 7. Transition tree.

Provide definition and steps to build transition tree:

1. Determine the objective
2. Determine the first action
3. Identify the reality and the need
4. Determine the first effect
5. Scrutinize the connections
6. Verify the first level of causation
7. Determine the next action
8. Determine the next reality or need
9. Determine the next effect
10. Scrutinize connections
11. Repeat steps 7 to 10
12. Review the completed tree

Chapter 8. Group Dynamics and the TOC thinking process.

Describe how to use TOC in groups.


Read Sept. 14-18, 7 hours