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Goldrattspeak ... . and Theory of Constraints

Any complex system is based on inherent simplicity; the more data elements one needs to describe a system, the more complex it is.

For every real life system, there are very few elements governing the entire system; the throughput of a goal-oriented system is governed by very few elements. Throughput is the rate at which `goal units' are generated (money in the case of businesses, patients treated in the case of hospitals, education level for schools, and so on).

The more complex a system, the greater the degree of mutual reliance of its elements, and thus its significant constraints are easier to identify and tackle.

Any business system has at least one constraint; otherwise its performance would be Infinite!

Activating a resource and utilising a resource are not synonymous. In fact, maximising efficiency of a non-constraint resource without dealing with significant constraints is harmful to enterprises. Preventing non-constraint resources from overproducing is necessary to reach throughput goals.

Combat the Silo Mentality — the tendency of every department to act as a separate fiefdom, ignoring the systemic interest and goals.

The sales force should sell not just products, but `business deals'.

Viable Vision involves five major steps: identify the system's constraint(s), decide how to exploit the constraint(s) (which involves getting the maximum out of the constraint's present position), subordinate everything to the above decision, elevate (strengthen) the system's constraint(s) and, if in the previous steps, a constraint has been broken, go back to Step One.

Where the market is the constraint, it means the constraint is beyond the "control" of the enterprise/organisation but not its "influence". Using ToC, influence the market to gain a sharp competitive edge.

RGK

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