Theory Of Constraints and "Goldrattism"
What are the different components from the Theory Of Constraints?
Eliyahu Goldratt, author of The Goal, the best seller that defined the base of what was later known as the Theory Of Constraints (TOC), has also worked on several other tools.
A lot of ideas were developed around the concept of constraint or bottleneck and the management of variability and/or uncertainty. The dual set of rules for constraints versus non-constraints. The 3Throughput World", the recommendation to increase profits by increasing sales rather than by reducing costs.
TOC in production - TOC was first applied to production with the Drum Buffer Rope and the Five Focusing Steps and it is the part described in (recommended) bestselling novel "The Goal" by Eliyahu Goldratt.
TOC applied to project management - Critical Chain Project Management (CCPM). Project buffers and the Fever Chart.
TOC applied to supply chain* - Replenishment solution, Demand Driven MRP , etc
TOC applied to Marketing and Sales - Mafia offers or un-refusable offers (URO) etc.
TOC for financial decision making - Throughput Accounting or Throughput Based decision Making
Theory of Constraints applied to services - services, compared to industry have usually a higher demand variability and therefore need consequent capacity buffers.
However, Eliyahu Goldratt also worked on "teaching the World how to think" or "how to think more logically". This is known as the Logical Thinking Process or Thinking Processes but is not related to the idea of constraints. At Marris Consulting we differentiate the Theory of Constraints and the Logical Thinking Process for this reason.
*Eliyahu Goldratt worked a lot on the Theory of Constraints applied to supply chain but DDMRP was later developed by Carol Ptak, Chad Smith and Debra Smith with many elements of TOC (and Lean, Six Sigma and ERP).
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