The Goal – Chapter 37 – Constraint Rules

We pick up the team where we closed out Chapter 36.  A set of Steps has been laid out on how to handle new situations.

Highlights

1. IDENTIFY the system’s constraint( s).

2. Decide how to EXPLOIT the system’s constraint( s).

3. SUBORDINATE everything else to the above decision.

4. ELEVATE the system’s constraint( s).

5. WARNING!!!! If in the previous steps a constraint has been broken, go back to step 1, but do not allow INERTIA to cause a system’s constraint.

Page by Page

P303 – “And then Jonah came and showed us it wasn’t new bottlenecks, but that the constraint had shifted to being the way we released work to the plant.”

The goal is to have a balanced method – have a method that recognizes when change is needed.

P304 – “I made my people obey those computer lists. That was a major change in the way they operate—especially when you consider how much pressure the foremen put on them to supply them with work.”

Ralph created change with urgency.

P305 – “I’ll take care of those tags immediately. You won’t see them tomorrow.” – Stacey responds to a new observation with urgency.  She knows her response will create reaction.

Part of creating change is picking areas where one action can allow everyone to show results.  Picking long lead time areas to create change makes it hart to develop consensus – anyone, any theory, any constraint can be right while results develop.

P306 – “No more of that awful situation where we hold mountains of some products and not even one single unit of others.”

Inventory management and traffic is a terrific waste of resources.  This applies to more than plant inventory – unclear projects create mental WIP.  Personally – having loads of stuff in an attic is a weight on your life.

P307 –

1. IDENTIFY the system’s constraint( s).

2. Decide how to EXPLOIT the system’s constraint( s).

3. SUBORDINATE everything else to the above decision.

4. ELEVATE the system’s constraint( s).

5. WARNING!!!! If in the previous steps a constraint has been broken, go back to step 1, but do not allow INERTIA to cause a system’s constraint.

P308- “Now we know that we have a lot of spare capacity.”

Companies often fall into a trap where resources are blindly thrown at problems without a focus on creating effective results. This creates more and more waste as uncoordinated actions drag a business into good local decisions that are poor strategic decisions.

Capacity to do new things disappears if it is not correctly tracked.

About flybrand1976

Find me on twitter @flybrand.
This entry was posted in Business Books, Uncategorized and tagged , , . Bookmark the permalink.

One Response to The Goal – Chapter 37 – Constraint Rules

  1. Pingback: Goldratt’s The Goal: Chapter by Chapter Review | Fred Lybrand

Comments are closed.