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Operations, as Taught by Eli Goldratt

Eight lessons following Eli Goldratt's own path through operations: what to change, what to change to, and how to cause the change. You follow Daniel, a plant manager, and Ruth, the TOC coach who never gives him an answer he can find himself.

  1. 1 Holistic, or one problem at a time?A steel mill with four departments, four problems and four expensive fixes that have nothing to do with each other. Goldratt's opening question: is it effective to deal with each problem in isolation, and if not, where is the one cause behind them all? 16 min
  2. 2 Tell me how you measure meFollow one measurement, tons per hour, through a steel mill and watch it produce every undesirable effect on Daniel's whiteboard. Goldratt's current reality tree, built step by step, and why V-plants suffer most from “stealing”. 20 min
  3. 3 The conflict behind the measurementWhy does every plant keep a measurement that does so much damage? Because underneath it sits a conflict every operations manager lives with: fight waste, or fight for flow. Build Goldratt's operations cloud, see why compromise can't win, and learn how a cloud is evaporated. 18 min
  4. 4 Is an idle resource a waste?Goldratt's proof, using only three facts true of every operation: try to keep even one resource busy all the time and see what the others must do. Then test yourself on four decisions where the old paradigm and the new one give opposite answers. 22 min
  5. 5 The Roadrunner and the drumA new work ethic to replace “look busy”, and the mechanism that makes it work: Drum-Buffer-Rope. Build a drum schedule, set a buffer, tie the rope, and find out why “wandering bottlenecks” usually aren't bottlenecks at all. 20 min
  6. 6 Putting Drum-Buffer-Rope to workThree practical steps, each with a trap. Who to ask about the bottleneck (and who not to), why the buffer should simply be half of today's lead time, and how to tie the rope in V, A and T plants without starting a revolt. 18 min
  7. 7 Buffer managementDBR is the plan; buffer management is the execution. Divide the buffer into three regions, expedite only the red, aim to expedite about 5% of the work, and use the record of “holes” to focus improvement, avoid the trap of self-defeating success and see the bottleneck move before it moves. 22 min
  8. 8 Only actions change realityGoldratt ended every session the same way: knowledge is worth nothing until it is acted on. Three actions you can start this month, the obstacles you'll meet, the results to expect, and his answers to the questions managers always ask. 16 min
  9. ✓Your certificateUnlocks when all eight quizzes are passed.

Start lesson 1

Start here if you want to see TOC in operations the way its originator built the argument, step by step. The ideas belong to Dr. Eliyahu M. Goldratt and Avraham (Rami) Goldratt, who taught them in their TOC Insights programme and the Goldratt Satellite Program broadcasts. The story, the characters and the wording are mine; this is an independent course, not a product of the Goldratt organisation.