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Eliyahu M. Goldratt

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Eliyahu M. Goldratt
Born(1947-03-31)March 31, 1947
Mandatory Palestine
DiedJune 11, 2011(2011-06-11) (aged 64)
Israel
NationalityIsraeli
Known forTheory of Constraints
Cause and Effect thinking
Slayer of Paradigms
Scientific career
FieldsTheory of Constraints
Operations Research
Organizational Psychology
Management Science
Education

Eliyahu Moshe Goldratt (March 31, 1947 – June 11, 2011) was an Israeli business management guru.[1][2] He was the originator of the Optimized Production Technique, 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 Goldratt's stories 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, contrary to conventional wisdom, is absolutely essential to ensure constant operation of the constrained resource.

Life

Eliyahu M. Goldratt's grave

Born in Israel into a rabbinic family, the son of Avraham-Yehuda Goldrat, 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. Goldratt died June 11, 2011 at noon, at his home in Israel.[3]

Work

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 publications[4]

Goldratt was actively involved in many controversies such as Cost Accounting v Throughput Accounting[5] and culminated in the publication of A Town Without Walls.[6]

Within the company, Goldratt noticed elements that made him uncomfortable[7] 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.[7]

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.[7] Finally, with help from Larry Gadd the owner of North River Press, the book was published and became a great success.[8] 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[9] 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 (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.[10]

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 (fiction, 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.[11]
  • The Race (non-fiction, 1986) further develops the logistical system called drum-buffer-rope (DBR), based on metaphors developed in The Goal.[11]
  • The Haystack Syndrome (non-fiction, 1990) looks deeper at the idea of performance measurements, examines differences between data and information, and explains the logic of the need for information.[11]
  • What is This Thing Called Theory of Constraints and How Should it be Implemented? (non-fiction, 1990) addresses the five focusing steps of on-going improvement and fundamentals of the Thinking processes.[11]

More recent works:

  • The Choice (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
  • The Choice, Revised Edition (2010) The revised edition 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 (fiction, 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.

Bibliography

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, Avraham (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

Magazines and journals

Theory of Constraints Journal

  • Eliyahu M. Goldratt. 1987. “Chapter 1 hierarchical management—The inherent conflict,” The Theory of Constraints Journal 1(1):1-17.
  • Eliyahu M. Goldratt. 1987. “A visit—Modine, the McHenry plant,” The Theory of Constraints Journal 1(1):19-40.
  • Eliyahu M. Goldratt. 1988. “Chapter 2 laying the foundation,” The Theory of Constraints Journal 1(2):1-20.
  • Eliyahu M. Goldratt. 1988. “Apologia or in the move towards the third stage,” The Theory of Constraints Journal 1(2):23-38.
  • Eliyahu M. Goldratt. 1988. “Chapter 3 the fundamental measurements,” The Theory of Constraints Journal 1(3):1-21.
  • Eliyahu M. Goldratt. 1988. “A visit—When quoted lead times are too long,” The Theory of Constraints Journal 1(3):23-46.
  • Eliyahu M. Goldratt. 1989. “Chapter 4 the importance of a system's constraint,” The Theory of Constraints Journal 1(4):1-12.
  • Eliyahu M. Goldratt. 1989. “A visit—(fictional visit-real plants) Looking beyond the first stage: Just in Time,” The Theory of Constraints Journal 1(4):13-46.
  • Eliyahu M. Goldratt. 1989. “Chapter 5 how complex are our systems?” The Theory of Constraints Journal 1(5):1-14.
  • Eliyahu M. Goldratt. 1989. “Looking beyond the first stage—Just in Time: Part two,” The Theory of Constraints Journal 1(5):15-48.
  • Eliyahu M. Goldratt. 1990. “Chapter 6 the paradigm shift,” The Theory of Constraints Journal 1(6):1-23.
  • Eliyahu M. Goldratt. 1990. “Looking beyond the first stage—Just in Time: Part three,” The Theory of Constraints Journal 1(6):25-43.

Industry Week

  • Eliyahu M. Goldratt. 1991. “Late-night discussions I: Is your inventory putting you a continent away?” Industry Week July 1, 240(13):24-26.
  • Eliyahu M. Goldratt. 1991. “Late-night discussions II: Single-source purchasing's long-term effects can be devastating,” Industry Week August 5, 240(15):29-31.
  • Eliyahu M. Goldratt. 1991. “Late-night discussions III: Transfer prices can be perilous, no matter how they're determined,” Industry Week September 2, 240(17):68-70.
  • Eliyahu M. Goldratt. 1991. “Late-night discussions IV: Why lightless plants got buried under the carpet,” Industry Week October 7, 240(19):55-57.
  • Eliyahu M. Goldratt. 1991. “Late-night discussions V: Searching for Japan's core statement: Manufacturing success of Japanese business,” Industry Week November 4, 240(21):30-32.
  • Eliyahu M. Goldratt. 1991. “Late-night discussions VI: Time for Total Quality Management to confront the real issues,” Industry Week December 2, 240(23):51-53.
  • Eliyahu M. Goldratt. 1992. “Late-night discussions VII: Why engineering is the key to competition,” Industry Week January 6, 241(1):17-19.
  • Eliyahu M. Goldratt. 1992. “Late-night discussions: VIII: When is a paradigm shift really a paradigm shift?” Industry Week February 3, 241(3):63-65.
  • Eliyahu M. Goldratt. 1992. “Late-night discussions IX: Dealing with a market downturn,” Industry Week March 2, 241(5):43-45.
  • Eliyahu M. Goldratt. 1992. “Late-night discussions X: Different markets, different prices,” Industry Week April 6, 241(7):58-60.
  • Eliyahu M. Goldratt. 1992. “Late night discussions XI: Tearing down the walls of distrust,” Industry Week May 4, 241(9):27-29.
  • Eliyahu M. Goldratt. 1992. “Late-night discussions XII: How cost accounting can get in the way,” Industry Week June 1, 241(11):38-40.

Other magazines/journals

  • Eliyahu M. Goldratt. M. 1988. “Computerized shop floor scheduling,” International Journal of Production Research 26(3):443-455.
  • Eliyahu M. Goldratt. 1993. “What is the Theory of Constraints?” APICS—The Performance Advantage June. Reprinted in Selected Readings in Constraints Management. Falls Church, VA: APICS. 1996, 3-6.
  • Eliyahu M. Goldratt. 1996. “My saga to improve production: Part 1,” APICS—The Performance Advantage July 6(7):32-35.
  • Eliyahu M. Goldratt. 1996. “My saga to improve production: Part 2,” APICS—The Performance Advantage August 6(8):34-36. Reprinted in:
  • Eliyahu M. Goldratt. 1996. “My saga to improve production”, Selected Readings in Constraints Management. Falls Church, VA: APICS 43-48. And in
  • Eliyahu M. Goldratt. 2003. Production: The TOC Way (Revised Edition) including CD-ROM simulator and workbook. Great Barrington, MA: North River Press.
  • Eliyahu M. Goldratt. 1997. “The TOC approach to organizational empowerment,” APICS—The Performance Advantage April 7(4):45-48.
  • Eliyahu M. Goldratt. 2009. “Standing on the Shoulders of Giants”, The Manufacturer, June/2009.[12]
  • Eliyahu M. Goldratt. 2009. “The Power of Cause and Effect,” Diamond Weekly 3/14:124-128.

Chapters in books

  • Eliyahu M. Goldratt. 1997. “Focusing on constraints, not costs”. In Rethinking the Future, R. Gibson, ed. London: Nicholas Brealey Publishing Ltd. ISBN 1-85788-108-7

Other works

Plays

  • Eliyahu M. Goldratt. 1995. UnCommon Sense. The play (final revision), New Haven, CT: Avraham Y. Goldratt Institute.

White papers and other unpublished works

  • Eliyahu M. Goldratt and George Plossl. 1984. A Town Without Walls. white paper, distributed during APICS 1984 International Conference in Las Vegas/USA
  • Eliyahu M. Goldratt. 1996. “Empowerment: Misalignments between responsibility and authority," white paper. Accessed March 26, 2010 at http://www.goldratt.com/empower.htm
  • Eliyahu M. Goldratt. 1998. On Saddam Hussein, Milestones, and How the Theory of Constraints Applies to Project Management. ManagementRoundtable.com.
  • Eliyahu M. Goldratt. 2000. “Project Management: The TOC Way, Tutor Guide and Workbook,” including CD-ROM simulator. Unpublished book. Roelofarendsveen, The Netherlands: A.Y.G.I. Ltd.

Conference presentations

  • Eliyahu M. Goldratt., 1980. Optimized production timetables: a revolutionary program for industry. In: APICS 23rd Annual International Conference, Falls Church, VA: APICS.
  • Eliyahu M. Goldratt., 1981. The unbalanced plant. In: APICS 24th Annual International Conference Proceedings, Falls Church, VA: APICS.
  • Eliyahu M. Goldratt. 1983. Cost accounting: The number one enemy of productivity. In: APICS 26th International Conference Proceedings. October. Falls Church, VA: APICS.
  • Eliyahu M. Goldratt and Fox R. E. 1987. The Theory of Constraints. In: APICS 30th Annual International Conference and Technical Exhibit, St Louis. Falls Church, VA: APICS.
  • Eliyahu M. Goldratt. 1996. Theory of Constraints in industry. (Keynote presentation) APICS Constraints Management Symposium Proceedings. April 17–19. Falls Church, VA: APICS.
  • Eliyahu M. Goldratt. 1997. JFL-1 The roots of TOC and the 3 cloud approach. In: Video Conference Proceedings Jonah Upgrade Workshop. New Haven, CT: Avraham Y. Goldratt Institute. Nov. 3-6
  • Eliyahu M. Goldratt. 1997. JFL-16 - Using the 3 cloud approach for buy-in. In: Video Conference Proceedings Jonah Upgrade Workshop. New Haven, CT: Avraham Y. Goldratt Institute. Nov. 3-6
  • Eliyahu M. Goldratt. 2000. Keynote: Necessary but not sufficient. APICS Constraints Management Technical Conference, Tampa, FL. Falls Church, VA: APICS.
  • Eliyahu M. Goldratt. 2001. Keynote: “Turning TOC into ‘the thing to do,” presentation at Founding TOCICO Conference. Atlanta, GA: TOCICO, November 16–19.
  • Eliyahu M. Goldratt. 2003. Keynote: “Making TOC the main way: The Goldratt Group Strategy & Tactic Tree and the Viable Vision Process,” presentation at 1st Annual TOCICO Conference. Cambridge, UK: TOCICO, September 7–10.
  • Eliyahu M. Goldratt. 2004. Keynote: “What is different about TOC?” [13] In: Video Conference Proceedings of 2nd Annual TOCICO Conference. Miami, FL: TOCICO, October 23–26.
  • Eliyahu M. Goldratt. 2005. Keynote: “Success through simplicity,”[14] In: Video Conference Proceedings of 3rd Annual TOCICO Conference. Barcelona, SP: TOCICO, November 13–16.
  • Eliyahu M. Goldratt. 2005. Keynote: “Viable Vision,” In: Video Conference Proceedings of 3rd Annual TOCICO Conference. Barcelona, SP: TOCICO, November 13–16.
  • Eliyahu M. Goldratt. 2006. Keynote: “The economy of the world: Past and future,”[15] In: Video Conference Proceedings of 4th Annual TOCICO Conference. Miami, FL: TOCICO November 4–7.
  • Eliyahu M. Goldratt. 2007. Keynote: “Freedom of choice,”[16] In: Video Conference Proceedings of 5th Annual TOCICO Conference. Las Vegas: TOCICO, November 3–7.
  • Eliyahu M. Goldratt. 2008. Keynote: “What is TOC?” [17] In: Video Conference Proceedings of 6th Annual TOCICO Conference. Las Vegas: TOCICO, November 1–4.
  • Eliyahu M. Goldratt. 2009. Keynote: “Standing on the shoulders of giants,”[18] In: Video Conference Proceedings of North American Regional Conference. Tacoma, WA: TOCICO, June 6–9.
  • Eliyahu M. Goldratt. 2009. Keynote: “Lessons learned: The power of cause-and-effect and TOC = focus,” In: Video Conference Proceedings of 7th Annual TOCICO Conference. Tokyo, JP: TOCICO, November 16–19.

See also

References

  1. ^ McClenahen, John S: "Manufacturing's Influential Thinkers & Doers" Retrieved on: October 24, 2008.
  2. ^ "Tales out of business school." The Economist. (January 21, 1995). 334 (7898), 63
  3. ^ "Eliyahu M. Goldratt, Renowned Business 'Guru' and Author of International Best-Selling Business Novel 'The Goal,' Dies at Age 64", "PR Newswire", June 14, 2011. Retrieved June 16, 2011.
  4. ^ G. Bylinsky. An Efficiency guru with a brown box. Fortune; 120 (September 1983)
  5. ^ Goldratt, E. M.; Cost accounting is enemy number one of productivity. International Conference Proceedings, American Production and Inventory Control Society (APICS) (October 1983).
  6. ^ Goldratt, Eliyahu M. & Plossl, George; A Town Without Walls. Whitepaper, distributed during APICS 1984 International Conference in Las Vegas/USA
  7. ^ a b c Goldratt, Eliyahu M.; My Saga to Improve Production. For instance, in the second edition of The Goal
  8. ^ Laurence Gadd. Preface to The Choice
  9. ^ "AGI Goldratt Institute". Retrieved June 13, 2011.
  10. ^ Paul H. Selden (1997). Sales Process Engineering: A Personal Workshop. Milwaukee, WI: ASQ Quality Press. pp. 33–35, 264–268.
  11. ^ a b c d e Shams-ur Rahman, (1998) "Theory of constraints: A review of the philosophy and its applications", International Journal of Operations & Production Management, Vol. 18 Iss: 4, pp.336 - 355
  12. ^ http://www.themanufacturer.com/uk/content/9280/Standing_on_the_shoulders_of_giants
  13. ^ "2004 TOCICO Keynote Address".
  14. ^ "Success through simplicity".
  15. ^ "2006 TOCICO Concluding Keynote".
  16. ^ "Freedom of Choice".
  17. ^ "What is TOC?".
  18. ^ "How to reach a much higher level of performance".

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