Eliyahu M. Goldratt
Encyclopedia
Eliyahu Moshe Goldratt was an Israeli physicist who became a business management guru. He was the originator of the Optimized Production Technology, the Theory of Constraints
(TOC), the Thinking Processes
, Drum-Buffer-Rope, Critical Chain Project Management (CCPM) and other TOC derived tools.
He authored several business novels
and non-fiction works, mainly on the application of the theory of constraints to various manufacturing, engineering, and other business processes.
The processes are typically modeled as resource flows, The constraints typically represent limits on flows. In his book The Goal
, the protagonist is a manager in charge of a troubled manufacturing operation. At any point in time, one particular constraint (such as inadequate capacity at a machine tool) limits total system throughput, and when the constraint is resolved, another constraint becomes the critical one. The plot of the stories, such as in his book "The Goal", revolve around identifying the current limiting constraint and raising it, which is followed by finding out which is the next limiting constraint. Another common theme is that the system being analyzed has excess capacity at a number of non critical points, which is a waste of resources.
, Goldratt went on to become a physicist. He obtained his Bachelor of Science degree from Tel Aviv University
, and his Masters of Science and Doctorate of Philosophy degrees from Bar-Ilan University
. Dr. Goldratt died June 11th, 2011 at noon, at his home in Israel.
Goldratt was actively involved in many controversies such as Cost Accounting x Throughput Accounting and culminated in the publication of A Town Without Walls.
Within the company Goldratt noticed elements that made him uncomfortable several software implementations did not come close to their estimated potential. After some work Goldratt discovered that the habits, and assumptions (paradigms) of employees and managers prior to using the software were still prominent and negatively influenced results after implementation.
His answer was the book The Goal
that took 13 months to write. After completion the book was not well received by the company staff and by large publishers. Finally, with help from Larry Gadd the owner of North River Press, the book was published and became a great success. After a while Goldratt noticed that many implementations were conducted using the Book but not the software. This caused further stress in the company and Goldratt tried to capture the essence of how to implement the solution directly in what is now known as Drum-Buffer-Rope method. He published The Race to explain some of the concepts he was working on, and developed a course to teach people how to manage their production using a computer simulation game.
Goldratt tried to move the company down the path of "consulting", trying to help people rethink the way they did things, but Creative Output's declining revenues and Goldratt involvement with anything but the sales of OPT software convinced the shareholders to fire Goldratt (and afterward his closer collaborators).
During the time of the AGI Goldratt got deeply involved with the further development of TOC, mainly the Thinking Processes
(and launched it publicly in 1991), Critical Chain Project Management and other applications. His concepts influenced applications outside manufacturing and supply management, including the field of sales process engineering
.
In 1997, Goldratt followed his plan to retire from the Institute prior to his 50th birthday.
He continued the development of TOC both in the Goldratt Group and in active support for other developments like TOC for Education, TOC in Healthcare, TOC for the Individual (in the continuity of the Odyssey Program, and the publishing of The Choice).
More recent works:
Theory of Constraints
The theory of constraints adopts the common idiom "A chain is no stronger than its weakest link" as a new management paradigm. This means that processes, organizations, etc., are vulnerable because the weakest person or part can always damage or break them or at least adversely affect the...
(TOC), the Thinking Processes
Thinking processes (Theory of Constraints)
This page is about thinking processes in the Theory of constraints. Wikipedia also has a list of thought processes.Thinking processes in Eliyahu M...
, Drum-Buffer-Rope, Critical Chain Project Management (CCPM) and other TOC derived tools.
He authored several business novels
Business fable
A business fable is a fable, parable or novel that shares a lesson or lessons that can be applied in the business world. Business fables focus on providing a powerful message for CEOs, executives, senior and middle management, sales teams, human resources, change management, goal setting,...
and non-fiction works, mainly on the application of the theory of constraints to various manufacturing, engineering, and other business processes.
The processes are typically modeled as resource flows, The constraints typically represent limits on flows. In his book The Goal
The Goal
The Goal is a management-oriented novel by Dr. Eliyahu M. Goldratt, a business consultant whose Theory of Constraints has become a model for systems management. It was originally published in 1984 and has since been revised and republished every few years, once in 1992 and again in 2004...
, the protagonist is a manager in charge of a troubled manufacturing operation. At any point in time, one particular constraint (such as inadequate capacity at a machine tool) limits total system throughput, and when the constraint is resolved, another constraint becomes the critical one. The plot of the stories, such as in his book "The Goal", revolve around identifying the current limiting constraint and raising it, which is followed by finding out which is the next limiting constraint. Another common theme is that the system being analyzed has excess capacity at a number of non critical points, which is a waste of resources.
Life
Born in Israel into a rabbinic family, the son of Avraham-Yehuda GoldratAvraham-Yehuda Goldrat
Rabbi Avraham-Yehuda Goldrat was an Israeli journalist and politician who served as a member of the Knesset between 1949 and 1951.-Biography:...
, Goldratt went on to become a physicist. He obtained his Bachelor of Science degree from Tel Aviv University
Tel Aviv University
Tel Aviv University is a public university located in Ramat Aviv, Tel Aviv, Israel. With nearly 30,000 students, TAU is Israel's largest university.-History:...
, and his Masters of Science and Doctorate of Philosophy degrees from Bar-Ilan University
Bar-Ilan University
Bar-Ilan University is a university in Ramat Gan of the Tel Aviv District, Israel.Established in 1955, Bar Ilan is now Israel's second-largest academic institution. It has nearly 26,800 students and 1,350 faculty members...
. Dr. Goldratt died June 11th, 2011 at noon, at his home in Israel.
Creative Output years
After some experience helping Israeli manufacturers, Goldratt left the academic world to join a company called Creative Output. The company developed and sold a software package, the Optimized Production Technology (OPT). OPT was billed as the first software to provide finite capacity scheduling for production environments. This software and the principles behind it were analyzed by a number of major publicationsGoldratt was actively involved in many controversies such as Cost Accounting x Throughput Accounting and culminated in the publication of A Town Without Walls.
Within the company Goldratt noticed elements that made him uncomfortable several software implementations did not come close to their estimated potential. After some work Goldratt discovered that the habits, and assumptions (paradigms) of employees and managers prior to using the software were still prominent and negatively influenced results after implementation.
His answer was the book The Goal
The Goal
The Goal is a management-oriented novel by Dr. Eliyahu M. Goldratt, a business consultant whose Theory of Constraints has become a model for systems management. It was originally published in 1984 and has since been revised and republished every few years, once in 1992 and again in 2004...
that took 13 months to write. After completion the book was not well received by the company staff and by large publishers. Finally, with help from Larry Gadd the owner of North River Press, the book was published and became a great success. After a while Goldratt noticed that many implementations were conducted using the Book but not the software. This caused further stress in the company and Goldratt tried to capture the essence of how to implement the solution directly in what is now known as Drum-Buffer-Rope method. He published The Race to explain some of the concepts he was working on, and developed a course to teach people how to manage their production using a computer simulation game.
Goldratt tried to move the company down the path of "consulting", trying to help people rethink the way they did things, but Creative Output's declining revenues and Goldratt involvement with anything but the sales of OPT software convinced the shareholders to fire Goldratt (and afterward his closer collaborators).
Avraham Y. Goldratt Institute years
After leaving Creative Output circa 1985 Goldratt created the Avraham Y Goldratt Institute or AGI (named after his father) to promote the Theory of Constraints and help it be implemented worldwide.During the time of the AGI Goldratt got deeply involved with the further development of TOC, mainly the Thinking Processes
Thinking processes (Theory of Constraints)
This page is about thinking processes in the Theory of constraints. Wikipedia also has a list of thought processes.Thinking processes in Eliyahu M...
(and launched it publicly in 1991), Critical Chain Project Management and other applications. His concepts influenced applications outside manufacturing and supply management, including the field of sales process engineering
Sales process engineering
Sales process engineering has been described as “the systematic application of scientific and mathematical principles to achieve the practical goals of a particular sales process". Selden pointed out that in this context, sales referred to the output of a process involving a variety of functions...
.
In 1997, Goldratt followed his plan to retire from the Institute prior to his 50th birthday.
Goldratt Group years
From the beginning of the 2000s Goldratt created the self-funded Goldratt Group and launched the Viable Vision initiative.He continued the development of TOC both in the Goldratt Group and in active support for other developments like TOC for Education, TOC in Healthcare, TOC for the Individual (in the continuity of the Odyssey Program, and the publishing of The Choice).
Writings
Goldratt produced many works. Some of the more noteworthy are:- The Goal (1984) introduces TOC process for improving organizations and briefly TOC's accounting aspects. While set in a manufacturing company, the book provides the context for a more generic approach to continuous improvement.
- The Race (1986) further develops the logistical system called drum-buffer-rope (DBR), based on metaphors developed in The Goal.
- The Haystack Syndrome (1990) looks deeper at the idea of performance measurements, examines differences between data and information, and explains the logic of the need for information.
- What is This Thing Called Theory of Constraints and How Should it be Implemented? (1990) addresses the five focusing steps of on-going improvement and fundamentals of the Thinking processesThinking processes (Theory of Constraints)This page is about thinking processes in the Theory of constraints. Wikipedia also has a list of thought processes.Thinking processes in Eliyahu M...
.
- It's Not Luck (1994) applies TOC to marketingMarketingMarketing is the process used to determine what products or services may be of interest to customers, and the strategy to use in sales, communications and business development. It generates the strategy that underlies sales techniques, business communication, and business developments...
, distributionDistribution (business)Product distribution is one of the four elements of the marketing mix. An organization or set of organizations involved in the process of making a product or service available for use or consumption by a consumer or business user.The other three parts of the marketing mix are product, pricing,...
and Business Strategy; Goldratt illustrates use of the Thinking processes to address policy constraints.
- Critical ChainCritical Chain (novel)Critical Chain is a novel by Dr. Eliyahu Goldratt using the Critical Chain theory of Project Management as the major theme. It is really a teaching method for the theory.-Plot introduction:...
(1997) applies TOC to project managementProject managementProject management is the discipline of planning, organizing, securing, and managing resources to achieve specific goals. A project is a temporary endeavor with a defined beginning and end , undertaken to meet unique goals and objectives, typically to bring about beneficial change or added value...
and illustrates the Critical ChainCritical chainCritical chain project management is a method of planning and managing projects that puts the main emphasis on the resources required to execute project tasks. It was developed by Eliyahu M. Goldratt. This is in contrast to the more traditional critical path and PERT methods, which emphasize task...
method for managing projects while commenting on the MBA Academic environment and its issues
- Necessary But Not SufficientNecessary But Not Sufficient (novel)Necessary But Not Sufficient is a 2000 novel authored by Dr. Eliyahu Goldratt and co-authors Eli Schrangenheim and Carol A. Ptak and published by the North River Press, which has previously published most of Goldratt's works...
(2000) applies TOC to Enterprise resource planningEnterprise resource planningEnterprise resource planning systems integrate internal and external management information across an entire organization, embracing finance/accounting, manufacturing, sales and service, customer relationship management, etc. ERP systems automate this activity with an integrated software application...
(ERP) and operations software
More recent works:
- The ChoiceThe Choice (book)The Choice is a philosophy book, where the author Eliyahu M. Goldratt explains his way of thinking about reality and the consequences of thinking clearly....
(2008) Talks about Goldratt's thought-provoking approach, this time through a conversation with his daughter Efrat, as he explains to her his fundamental system of beliefs. A second edition is planned for publishing which includes Efrat's own notes she made during the conversation with her father, helping the reader determine the true essence of the book.
- Isn't it Obvious (2009) Goldratt's newest book looks into retail. Ilan Eshkoli and Joe Leer Brown are co-authors. The story is about a husband (manager) and wife (purchaser) working in her family's retail chain. An unexpected crisis helps them to find new ways of doing things - ending in success.
Business novels
- Eliyahu M. Goldratt, Jeff Cox. The Goal: A Process of Ongoing Improvement. (1984). North River Press; 2nd Rev edition (1992). ISBN 0-88427-061-0; 20th Anniversary edition (2004) 0-88427-178-1
- Eliyahu M. Goldratt. It's Not Luck. (1994) ISBN 0-88427-115-3
- Eliyahu M. Goldratt. Critical Chain. (1997) ISBN 0-88427-153-6
- Eliyahu M. Goldratt, Eli Schragenheim, Carol A. Ptak. Necessary But Not Sufficient. (2000) ISBN 0-88427-170-6
- Eliyahu M. Goldratt. Late Night Discussions on the Theory of Constraints. (1998) ISBN 0-88427-160-9
- Eliyahu M. Goldratt, Ilan Eshkoli, Joe Brownleer. Isn't It Obvious? (2009) ISBN: 0-88427-178-1
Nonfiction books
- Eliyahu M. Goldratt and Robert E. Fox. The Race. (1986) ISBN 0-88427-062-9
- Eliyahu M. Goldratt. Essays on the Theory of Constraints. (1987) ISBN 0-88427-159-5
- Eliyahu M. Goldratt. What is this Thing Called Theory of Constraints. (1990) ISBN 0-88427-166-8
- Eliyahu M. Goldratt. The Haystack Syndrome: Sifting Information Out of the Data Ocean. (1991) ISBN 0-88427-184-6
- Eliyahu M. Goldratt. Production the TOC Way (Revised Edition). (2003) ISBN 0-88427-175-7
- Eliyahu M. Goldratt and Efrat Goldratt-Ashlag. The Choice (2008) North River Press; ISBN: 0-88427-189-7 Revised edition (2010) North River Press; ISBN: 0-88427-193-5
Other media publications
- Eliyahu M. Goldratt. TOC - Self Learning Program. 8 Video Sessions: Operations; Finance and Measurements; Project Management; Distribution; Marketing; Sales and Buy-In; Strategy and tactics (2002)
- Eliyahu M. Goldratt, Rami Goldratt. TOC Insights". 4 Self learning computer software: Operations; Finance and Measurements; Project Management; Distribution (2003)
- Eliyahu M. Goldratt. Beyond The Goal. Audiobook (2005) ISBN 1-59659-023-8