Theory of Constraints

Overview of Theory of Constraints (TOC)

TOC is a multifaceted management philosophy. It is a new paradigm that demands us to think about policies, procedures and measures in a different way in the context of systematic analysis of problems and their logical solutions. It is more than a set of tools or techniques.

It is a generic management philosophy and has been successfully applied in diverse environments such as manufacturing industries, consumer goods, projects organisations and service organisations such as hospitals, schools. It has been applied in public & private enterprises, large & small organisations with great successes.

Application of TOC has been extended in all the functions of organisations: Operations, Finance & measurements, Project Management & Engineering, Distribution & Supply Chain Management, Marketing, Sales, and Managing People and Strategy. There are several resources developed on the lines of the above. Most popular among them are the Goldratt Satellite Program. 

History of TOC

After taking root as production scheduling software called OPT (optimised Production Technlolgy) nearly 40 years ago, TOC grew as a robust management system with application in many facets of Management. It evolved by verbalising the principles of cause and relationship like in physics. The first application was in manufacturing companies with Drum-Buffer-Rope (DBR*) with astounding success. Wider use of these principles resulted in other applications. TOC is now applied to operations, finance & measurements, project management & engineering, distribution & supply chain management, marketing, sales, managing people and strategy.

General Experience from TOC

1. In a fiercely competitive environment, it is imperative that the outcomes must be in order of magnitude and also should be achieved in a short span of time. General experience in implementing TOC provides the condition for the solution as mentioned above. Anyone who tries implementing TOC achieves big results in a relatively short span of time. Typical results achieved through TOC implementation in different environments are:
1. Results from production:
1. Mean cycle time reduction 60%
2. Mean due date adherence improvement of 60%
3. Mean inventory reduction of 50%
4. Mean profit / revenue increase of 82%
   
2. Results from projects environment
1. 40% or more reduction in lead times
2. Overview of Theory of Constraints (TOC)
3. TOC is a multifaceted management philosophy. It is a new paradigm that demands us to think about policies, procedures and measures in a different way in the context of systematic analysis of problems and their logical solutions. It is more than a set of tools or techniques.
4. It is a generic management philosophy and has been successfully applied in diverse environments such as manufacturing industries, consumer goods, projects organisations and service organisations such as hospitals, schools. It has been applied in public & private enterprises, large & small organisations with great successes.
5. Application of TOC has been extended in all the functions of organisations: Operations, Finance & measurements, Project Management & Engineering, Distribution & Supply Chain Management, Marketing, Sales, and Managing People and Strategy. There are several resources developed on the lines of the above. Most popular among them are the Goldratt Satellite Program. 
 History of TOC
After taking root as production scheduling software called OPT (optimised Production Technlolgy) nearly 40 years ago, TOC grew as a robust management system with application in many facets of Management. It evolved by verbalising the principles of cause and relationship like in physics. The first application was in manufacturing companies with Drum-Buffer-Rope (DBR*) with astounding success. Wider use of these principles resulted in other applications. TOC is now applied to operations, finance & measurements, project management & engineering, distribution & supply chain management, marketing, sales, managing people and strategy.


* DBR is a production management system first described in The Goal & The Race.


General Experience from TOC
1. In a fiercely competitive environment, it is imperative that the outcomes must be in order of magnitude and also should be achieved in a short span of time. General experience in implementing TOC provides the condition for the solution as mentioned above. Anyone who tries implementing TOC achieves big results in a relatively short span of time. Typical results achieved through TOC implementation in different environments are:
1. Results from production:
1. Mean cycle time reduction 60%
2. Mean due date adherence improvement of 60%
3. Mean inventory reduction of 50%
4. Mean profit / revenue increase of 82%
   
2. Results from projects environment
1. 40% or more reduction in lead times
2. Twice as many projects are completed by the same resources
3. Projects are completed ahead of schedule and under budget
   
3. Results from healthcare environment
1. 30% reduction in average length of stay
2. Patient turnaround is less than 4 hours.
3. Operating theatre utilisation increased from 73% to 88%.


The general experience from TOC can be summed up in the following three points:


1. Almost anyone who tries achieves results - The keyword is who tries. Results DO NOT come automatically. When management tries seriously, they get the results. Seriously means that the pre-requisites are in place and preparations for implementation are rigorously done.  The pre-requisites & preparations are defined elsewhere in the course.


2. Results are big – This also means that big targets must be set. Small targets bring small results and targets like visibility, control etc. bring random results.  The targeted gain must be quantified. In doing so, it is better to be approximately right, than precisely wrong. Not quantifying is precisely wrong.


3. Results are achieved within a very short period - If results are not there within 3 months after the transition to TOC-CCPM begins, there is something wrong in the preparations or a pre-requisite might be missing. Pause & re-look.




1. 1.1.The Anatomy of TOC


The following picture explains the TOC in three sections: The basis of Change, the methods for change and tools to articulate, communicate & effect change. Below the diagram there are brief explanations about each element.
 






Test your understanding


TOC is applicable in the following kinds of environment
1. Production
2. Projects
3. Marketing
4. All of the above


What has been the general experience from TOC?
1. Results are big
2. Results are achieved in very short period of time
3. Achievement of results requires lot of time and effort.
4. 1 and 2


If the results are not seen long after the transition has begun, we must do the following
1. Wait longer to see the results
2. Pause and re-look at the pre-requites & preparations
3. Start the transition all over again
4. Conclude that TOC is not applicable in the current environment
1. Overview of Theory of Constraints (TOC)
2. TOC is a multifaceted management philosophy. It is a new paradigm that demands us to think about policies, procedures and measures in a different way in the context of systematic analysis of problems and their logical solutions. It is more than a set of tools or techniques.
3. It is a generic management philosophy and has been successfully applied in diverse environments such as manufacturing industries, consumer goods, projects organisations and service organisations such as hospitals, schools. It has been applied in public & private enterprises, large & small organisations with great successes.
4. Application of TOC has been extended in all the functions of organisations: Operations, Finance & measurements, Project Management & Engineering, Distribution & Supply Chain Management, Marketing, Sales, and Managing People and Strategy. There are several resources developed on the lines of the above. Most popular among them are the Goldratt Satellite Program. 
 History of TOC
After taking root as production scheduling software called OPT (optimised Production Technlolgy) nearly 40 years ago, TOC grew as a robust management system with application in many facets of Management. It evolved by verbalising the principles of cause and relationship like in physics. The first application was in manufacturing companies with Drum-Buffer-Rope (DBR*) with astounding success. Wider use of these principles resulted in other applications. TOC is now applied to operations, finance & measurements, project management & engineering, distribution & supply chain management, marketing, sales, managing people and strategy.


* DBR is a production management system first described in The Goal & The Race.


General Experience from TOC
1. In a fiercely competitive environment, it is imperative that the outcomes must be in order of magnitude and also should be achieved in a short span of time. General experience in implementing TOC provides the condition for the solution as mentioned above. Anyone who tries implementing TOC achieves big results in a relatively short span of time. Typical results achieved through TOC implementation in different environments are:
1. Results from production:
1. Mean cycle time reduction 60%
2. Mean due date adherence improvement of 60%
3. Mean inventory reduction of 50%
4. Mean profit / revenue increase of 82%
   
2. Results from projects environment
1. 40% or more reduction in lead times
2. Twice as many projects are completed by the same resources
3. Projects are completed ahead of schedule and under budget
   
3. Results from healthcare environment
1. 30% reduction in average length of stay
2. Patient turnaround is less than 4 hours.
3. Operating theatre utilisation increased from 73% to 88%.


The general experience from TOC can be summed up in the following three points:


1. Almost anyone who tries achieves results - The keyword is who tries. Results DO NOT come automatically. When management tries seriously, they get the results. Seriously means that the pre-requisites are in place and preparations for implementation are rigorously done.  The pre-requisites & preparations are defined elsewhere in the course.


2. Results are big – This also means that big targets must be set. Small targets bring small results and targets like visibility, control etc. bring random results.  The targeted gain must be quantified. In doing so, it is better to be approximately right, than precisely wrong. Not quantifying is precisely wrong.


3. Results are achieved within a very short period - If results are not there within 3 months after the transition to TOC-CCPM begins, there is something wrong in the preparations or a pre-requisite might be missing. Pause & re-look.




1. 1.1.The Anatomy of TOC


The following picture explains the TOC in three sections: The basis of Change, the methods for change and tools to articulate, communicate & effect change. Below the diagram there are brief explanations about each element.
 






Test your understanding


TOC is applicable in the following kinds of environment
1. Production
2. Projects
3. Marketing
4. All of the above


What has been the general experience from TOC?
1. Results are big
2. Results are achieved in very short period of time
3. Achievement of results requires lot of time and effort.
4. 1 and 2


If the results are not seen long after the transition has begun, we must do the following
1. Wait longer to see the results
2. Pause and re-look at the pre-requites & preparations
3. Start the transition all over again
4. Conclude that TOC is not applicable in the current environment
1. Overview of Theory of Constraints (TOC)
2. TOC is a multifaceted management philosophy. It is a new paradigm that demands us to think about policies, procedures and measures in a different way in the context of systematic analysis of problems and their logical solutions. It is more than a set of tools or techniques.
3. It is a generic management philosophy and has been successfully applied in diverse environments such as manufacturing industries, consumer goods, projects organisations and service organisations such as hospitals, schools. It has been applied in public & private enterprises, large & small organisations with great successes.
4. Application of TOC has been extended in all the functions of organisations: Operations, Finance & measurements, Project Management & Engineering, Distribution & Supply Chain Management, Marketing, Sales, and Managing People and Strategy. There are several resources developed on the lines of the above. Most popular among them are the Goldratt Satellite Program. 
 History of TOC
After taking root as production scheduling software called OPT (optimised Production Technlolgy) nearly 40 years ago, TOC grew as a robust management system with application in many facets of Management. It evolved by verbalising the principles of cause and relationship like in physics. The first application was in manufacturing companies with Drum-Buffer-Rope (DBR*) with astounding success. Wider use of these principles resulted in other applications. TOC is now applied to operations, finance & measurements, project management & engineering, distribution & supply chain management, marketing, sales, managing people and strategy.


* DBR is a production management system first described in The Goal & The Race.


General Experience from TOC
1. In a fiercely competitive environment, it is imperative that the outcomes must be in order of magnitude and also should be achieved in a short span of time. General experience in implementing TOC provides the condition for the solution as mentioned above. Anyone who tries implementing TOC achieves big results in a relatively short span of time. Typical results achieved through TOC implementation in different environments are:
1. Results from production:
1. Mean cycle time reduction 60%
2. Mean due date adherence improvement of 60%
3. Mean inventory reduction of 50%
4. Mean profit / revenue increase of 82%
   
2. Results from projects environment
1. 40% or more reduction in lead times
2. Twice as many projects are completed by the same resources
3. Projects are completed ahead of schedule and under budget
   
3. Results from healthcare environment
1. 30% reduction in average length of stay
2. Patient turnaround is less than 4 hours.
3. Operating theatre utilisation increased from 73% to 88%.


The general experience from TOC can be summed up in the following three points:


1. Almost anyone who tries achieves results - The keyword is who tries. Results DO NOT come automatically. When management tries seriously, they get the results. Seriously means that the pre-requisites are in place and preparations for implementation are rigorously done.  The pre-requisites & preparations are defined elsewhere in the course.


2. Results are big – This also means that big targets must be set. Small targets bring small results and targets like visibility, control etc. bring random results.  The targeted gain must be quantified. In doing so, it is better to be approximately right, than precisely wrong. Not quantifying is precisely wrong.


3. Results are achieved within a very short period - If results are not there within 3 months after the transition to TOC-CCPM begins, there is something wrong in the preparations or a pre-requisite might be missing. Pause & re-look.




1. 1.1.The Anatomy of TOC


The following picture explains the TOC in three sections: The basis of Change, the methods for change and tools to articulate, communicate & effect change. Below the diagram there are brief explanations about each element.
 






Test your understanding


TOC is applicable in the following kinds of environment
1. Production
2. Projects
3. Marketing
4. All of the above


What has been the general experience from TOC?
1. Results are big
2. Results are achieved in very short period of time
3. Achievement of results requires lot of time and effort.
4. 1 and 2


If the results are not seen long after the transition has begun, we must do the following
1. Wait longer to see the results
2. Pause and re-look at the pre-requites & preparations
3. Start the transition all over again
4. Conclude that TOC is not applicable in the current environment
1. Overview of Theory of Constraints (TOC)
2. TOC is a multifaceted management philosophy. It is a new paradigm that demands us to think about policies, procedures and measures in a different way in the context of systematic analysis of problems and their logical solutions. It is more than a set of tools or techniques.
3. It is a generic management philosophy and has been successfully applied in diverse environments such as manufacturing industries, consumer goods, projects organisations and service organisations such as hospitals, schools. It has been applied in public & private enterprises, large & small organisations with great successes.
4. Application of TOC has been extended in all the functions of organisations: Operations, Finance & measurements, Project Management & Engineering, Distribution & Supply Chain Management, Marketing, Sales, and Managing People and Strategy. There are several resources developed on the lines of the above. Most popular among them are the Goldratt Satellite Program. 
 History of TOC
After taking root as production scheduling software called OPT (optimised Production Technlolgy) nearly 40 years ago, TOC grew as a robust management system with application in many facets of Management. It evolved by verbalising the principles of cause and relationship like in physics. The first application was in manufacturing companies with Drum-Buffer-Rope (DBR*) with astounding success. Wider use of these principles resulted in other applications. TOC is now applied to operations, finance & measurements, project management & engineering, distribution & supply chain management, marketing, sales, managing people and strategy.


* DBR is a production management system first described in The Goal & The Race.


General Experience from TOC
1. In a fiercely competitive environment, it is imperative that the outcomes must be in order of magnitude and also should be achieved in a short span of time. General experience in implementing TOC provides the condition for the solution as mentioned above. Anyone who tries implementing TOC achieves big results in a relatively short span of time. Typical results achieved through TOC implementation in different environments are:
1. Results from production:
1. Mean cycle time reduction 60%
2. Mean due date adherence improvement of 60%
3. Mean inventory reduction of 50%
4. Mean profit / revenue increase of 82%
   
2. Results from projects environment
1. 40% or more reduction in lead times
2. Twice as many projects are completed by the same resources
3. Projects are completed ahead of schedule and under budget
   
3. Results from healthcare environment
1. 30% reduction in average length of stay
2. Patient turnaround is less than 4 hours.
3. Operating theatre utilisation increased from 73% to 88%.


The general experience from TOC can be summed up in the following three points:


1. Almost anyone who tries achieves results - The keyword is who tries. Results DO NOT come automatically. When management tries seriously, they get the results. Seriously means that the pre-requisites are in place and preparations for implementation are rigorously done.  The pre-requisites & preparations are defined elsewhere in the course.


2. Results are big – This also means that big targets must be set. Small targets bring small results and targets like visibility, control etc. bring random results.  The targeted gain must be quantified. In doing so, it is better to be approximately right, than precisely wrong. Not quantifying is precisely wrong.


3. Results are achieved within a very short period - If results are not there within 3 months after the transition to TOC-CCPM begins, there is something wrong in the preparations or a pre-requisite might be missing. Pause & re-look.




1. 1.1.The Anatomy of TOC


The following picture explains the TOC in three sections: The basis of Change, the methods for change and tools to articulate, communicate & effect change. Below the diagram there are brief explanations about each element.
 






Test your understanding


TOC is applicable in the following kinds of environment
1. Production
2. Projects
3. Marketing
4. All of the above


What has been the general experience from TOC?
1. Results are big
2. Results are achieved in very short period of time
3. Achievement of results requires lot of time and effort.
4. 1 and 2


If the results are not seen long after the transition has begun, we must do the following
1. Wait longer to see the results
2. Pause and re-look at the pre-requites & preparations
3. Start the transition all over again
4. Conclude that TOC is not applicable in the current environment
1. Overview of Theory of Constraints (TOC)
2. TOC is a multifaceted management philosophy. It is a new paradigm that demands us to think about policies, procedures and measures in a different way in the context of systematic analysis of problems and their logical solutions. It is more than a set of tools or techniques.
3. It is a generic management philosophy and has been successfully applied in diverse environments such as manufacturing industries, consumer goods, projects organisations and service organisations such as hospitals, schools. It has been applied in public & private enterprises, large & small organisations with great successes.
4. Application of TOC has been extended in all the functions of organisations: Operations, Finance & measurements, Project Management & Engineering, Distribution & Supply Chain Management, Marketing, Sales, and Managing People and Strategy. There are several resources developed on the lines of the above. Most popular among them are the Goldratt Satellite Program. 
 History of TOC
After taking root as production scheduling software called OPT (optimised Production Technlolgy) nearly 40 years ago, TOC grew as a robust management system with application in many facets of Management. It evolved by verbalising the principles of cause and relationship like in physics. The first application was in manufacturing companies with Drum-Buffer-Rope (DBR*) with astounding success. Wider use of these principles resulted in other applications. TOC is now applied to operations, finance & measurements, project management & engineering, distribution & supply chain management, marketing, sales, managing people and strategy.


* DBR is a production management system first described in The Goal & The Race.


General Experience from TOC
1. In a fiercely competitive environment, it is imperative that the outcomes must be in order of magnitude and also should be achieved in a short span of time. General experience in implementing TOC provides the condition for the solution as mentioned above. Anyone who tries implementing TOC achieves big results in a relatively short span of time. Typical results achieved through TOC implementation in different environments are:
1. Results from production:
1. Mean cycle time reduction 60%
2. Mean due date adherence improvement of 60%
3. Mean inventory reduction of 50%
4. Mean profit / revenue increase of 82%
   
2. Results from projects environment
1. 40% or more reduction in lead times
2. Twice as many projects are completed by the same resources
3. Projects are completed ahead of schedule and under budget
   
3. Results from healthcare environment
1. 30% reduction in average length of stay
2. Patient turnaround is less than 4 hours.
3. Operating theatre utilisation increased from 73% to 88%.


The general experience from TOC can be summed up in the following three points:


1. Almost anyone who tries achieves results - The keyword is who tries. Results DO NOT come automatically. When management tries seriously, they get the results. Seriously means that the pre-requisites are in place and preparations for implementation are rigorously done.  The pre-requisites & preparations are defined elsewhere in the course.


2. Results are big – This also means that big targets must be set. Small targets bring small results and targets like visibility, control etc. bring random results.  The targeted gain must be quantified. In doing so, it is better to be approximately right, than precisely wrong. Not quantifying is precisely wrong.


3. Results are achieved within a very short period - If results are not there within 3 months after the transition to TOC-CCPM begins, there is something wrong in the preparations or a pre-requisite might be missing. Pause & re-look.




1. 1.1.The Anatomy of TOC


The following picture explains the TOC in three sections: The basis of Change, the methods for change and tools to articulate, communicate & effect change. Below the diagram there are brief explanations about each element.
 






Test your understanding


TOC is applicable in the following kinds of environment
1. Production
2. Projects
3. Marketing
4. All of the above


What has been the general experience from TOC?
1. Results are big
2. Results are achieved in very short period of time
3. Achievement of results requires lot of time and effort.
4. 1 and 2


If the results are not seen long after the transition has begun, we must do the following
1. Wait longer to see the results
2. Pause and re-look at the pre-requites & preparations
3. Start the transition all over again
4. Conclude that TOC is not applicable in the current environment
1. Overview of Theory of Constraints (TOC)
2. TOC is a multifaceted management philosophy. It is a new paradigm that demands us to think about policies, procedures and measures in a different way in the context of systematic analysis of problems and their logical solutions. It is more than a set of tools or techniques.
3. It is a generic management philosophy and has been successfully applied in diverse environments such as manufacturing industries, consumer goods, projects organisations and service organisations such as hospitals, schools. It has been applied in public & private enterprises, large & small organisations with great successes.
4. Application of TOC has been extended in all the functions of organisations: Operations, Finance & measurements, Project Management & Engineering, Distribution & Supply Chain Management, Marketing, Sales, and Managing People and Strategy. There are several resources developed on the lines of the above. Most popular among them are the Goldratt Satellite Program. 
 History of TOC
After taking root as production scheduling software called OPT (optimised Production Technlolgy) nearly 40 years ago, TOC grew as a robust management system with application in many facets of Management. It evolved by verbalising the principles of cause and relationship like in physics. The first application was in manufacturing companies with Drum-Buffer-Rope (DBR*) with astounding success. Wider use of these principles resulted in other applications. TOC is now applied to operations, finance & measurements, project management & engineering, distribution & supply chain management, marketing, sales, managing people and strategy.


* DBR is a production management system first described in The Goal & The Race.


General Experience from TOC
1. In a fiercely competitive environment, it is imperative that the outcomes must be in order of magnitude and also should be achieved in a short span of time. General experience in implementing TOC provides the condition for the solution as mentioned above. Anyone who tries implementing TOC achieves big results in a relatively short span of time. Typical results achieved through TOC implementation in different environments are:
1. Results from production:
1. Mean cycle time reduction 60%
2. Mean due date adherence improvement of 60%
3. Mean inventory reduction of 50%
4. Mean profit / revenue increase of 82%
   
2. Results from projects environment
1. 40% or more reduction in lead times
2. Twice as many projects are completed by the same resources
3. Projects are completed ahead of schedule and under budget
   
3. Results from healthcare environment
1. 30% reduction in average length of stay
2. Patient turnaround is less than 4 hours.
3. Operating theatre utilisation increased from 73% to 88%.


The general experience from TOC can be summed up in the following three points:


1. Almost anyone who tries achieves results - The keyword is who tries. Results DO NOT come automatically. When management tries seriously, they get the results. Seriously means that the pre-requisites are in place and preparations for implementation are rigorously done.  The pre-requisites & preparations are defined elsewhere in the course.


2. Results are big – This also means that big targets must be set. Small targets bring small results and targets like visibility, control etc. bring random results.  The targeted gain must be quantified. In doing so, it is better to be approximately right, than precisely wrong. Not quantifying is precisely wrong.


3. Results are achieved within a very short period - If results are not there within 3 months after the transition to TOC-CCPM begins, there is something wrong in the preparations or a pre-requisite might be missing. Pause & re-look.




1. 1.1.The Anatomy of TOC


The following picture explains the TOC in three sections: The basis of Change, the methods for change and tools to articulate, communicate & effect change. Below the diagram there are brief explanations about each element.
 






Test your understanding


TOC is applicable in the following kinds of environment
1. Production
2. Projects
3. Marketing
4. All of the above


What has been the general experience from TOC?
1. Results are big
2. Results are achieved in very short period of time
3. Achievement of results requires lot of time and effort.
4. 1 and 2


If the results are not seen long after the transition has begun, we must do the following
1. Wait longer to see the results
2. Pause and re-look at the pre-requites & preparations
3. Start the transition all over again
4. Conclude that TOC is not applicable in the current environment
1. Overview of Theory of Constraints (TOC)
2. TOC is a multifaceted management philosophy. It is a new paradigm that demands us to think about policies, procedures and measures in a different way in the context of systematic analysis of problems and their logical solutions. It is more than a set of tools or techniques.
3. It is a generic management philosophy and has been successfully applied in diverse environments such as manufacturing industries, consumer goods, projects organisations and service organisations such as hospitals, schools. It has been applied in public & private enterprises, large & small organisations with great successes.
4. Application of TOC has been extended in all the functions of organisations: Operations, Finance & measurements, Project Management & Engineering, Distribution & Supply Chain Management, Marketing, Sales, and Managing People and Strategy. There are several resources developed on the lines of the above. Most popular among them are the Goldratt Satellite Program. 
 History of TOC
After taking root as production scheduling software called OPT (optimised Production Technlolgy) nearly 40 years ago, TOC grew as a robust management system with application in many facets of Management. It evolved by verbalising the principles of cause and relationship like in physics. The first application was in manufacturing companies with Drum-Buffer-Rope (DBR*) with astounding success. Wider use of these principles resulted in other applications. TOC is now applied to operations, finance & measurements, project management & engineering, distribution & supply chain management, marketing, sales, managing people and strategy.


* DBR is a production management system first described in The Goal & The Race.


General Experience from TOC
1. In a fiercely competitive environment, it is imperative that the outcomes must be in order of magnitude and also should be achieved in a short span of time. General experience in implementing TOC provides the condition for the solution as mentioned above. Anyone who tries implementing TOC achieves big results in a relatively short span of time. Typical results achieved through TOC implementation in different environments are:
1. Results from production:
1. Mean cycle time reduction 60%
2. Mean due date adherence improvement of 60%
3. Mean inventory reduction of 50%
4. Mean profit / revenue increase of 82%
   
2. Results from projects environment
1. 40% or more reduction in lead times
2. Twice as many projects are completed by the same resources
3. Projects are completed ahead of schedule and under budget
   
3. Results from healthcare environment
1. 30% reduction in average length of stay
2. Patient turnaround is less than 4 hours.
3. Operating theatre utilisation increased from 73% to 88%.


The general experience from TOC can be summed up in the following three points:


1. Almost anyone who tries achieves results - The keyword is who tries. Results DO NOT come automatically. When management tries seriously, they get the results. Seriously means that the pre-requisites are in place and preparations for implementation are rigorously done.  The pre-requisites & preparations are defined elsewhere in the course.


2. Results are big – This also means that big targets must be set. Small targets bring small results and targets like visibility, control etc. bring random results.  The targeted gain must be quantified. In doing so, it is better to be approximately right, than precisely wrong. Not quantifying is precisely wrong.


3. Results are achieved within a very short period - If results are not there within 3 months after the transition to TOC-CCPM begins, there is something wrong in the preparations or a pre-requisite might be missing. Pause & re-look.




1. 1.1.The Anatomy of TOC


The following picture explains the TOC in three sections: The basis of Change, the methods for change and tools to articulate, communicate & effect change. Below the diagram there are brief explanations about each element.
 






Test your understanding


TOC is applicable in the following kinds of environment
1. Production
2. Projects
3. Marketing
4. All of the above


What has been the general experience from TOC?
1. Results are big
2. Results are achieved in very short period of time
3. Achievement of results requires lot of time and effort.
4. 1 and 2


If the results are not seen long after the transition has begun, we must do the following
1. Wait longer to see the results
2. Pause and re-look at the pre-requites & preparations
3. Start the transition all over again
4. Conclude that TOC is not applicable in the current environment
6. Twice as many projects are completed by the same resources
7. Projects are completed ahead of schedule and under budget
   
3. Results from healthcare environment
1. 30% reduction in average length of stay