This is the definitive guide to the theory of constraints. In this authoritative volume, the world's top Theory of Constraints (TOC) experts reveal how to implement the ground-breaking management and improvement methodology developed by Dr. Eliyahu M. Goldratt. "Theory of Constraints Handbook" offers an in-depth examination of this revolutionary concept of bringing about global organization performance improvement by focusing on a few leverage points of the system. Clear explanations supplemented by examples and case studies define how the theory works, why it works, what issues are resolved, and what benefits accrue, and demonstrate how TOC can be applied to different industries and situations. "Theory of Constraints Handbook" covers: Critical Chain Project Management for realizing major improvements in delivering projects on time, to specification, and within budget; Drum-Buffer-Rope (DBR), Buffer Management, and distribution for maximizing throughput and minimizing flow time; performance measures for applying Throughput Accounting to improve organizational performance; strategy, marketing, and sales techniques designed to increase sales closing rates and Throughput; Thinking Processes for simple and complex environments; TOC methods to ensure that services actions support escalating demand for services while retaining financial viability; and, integrating the TOC Thinking Processes, the Strategy and Tactic Tree, TOC measurements, the Five Focusing Steps of TOC, and Six Sigma as a system of tools for sustainable improvement.
Preface
Acknowledgments
Section I What Is TOC?
1 Introduction to TOC---My Perspective by Eliyahu M. Goldratt 3
Focus 3
Constraints and Non-Constraints 4
Measurements 4
The Goal and The Race 5
Other Environments 5
The Thinking Processes 5
The Market Constraint 6
Capitalize and Sustain 6
Ever Flourishing 7
Strategy and Tactic Trees 8
New Frontiers 8
References 9
About the Author 9
Section II Critical Chain Project Management
2 The Problems with Project Management by Ed Walker 13
Introduction 13
Purpose and Organization of the Chapter 13
Traditional Planning and Control Mechanisms in Project Management 14
Gantt Charts 14
PERT/CPM in the Single Project Environment 15
Brief Review of Project Management Literature 16
Origins of PERT and CPM 16
Project Failures 17
Single Project Management Literature 18
Multiple Project Management Literature 19
Development of Guidelines 19
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