Archive for TOC

Bahadir Inozu, Ph.D., the Chief Executive Officer and Dan Chauncey, the Director of Deployment Services for NOVACES joined me in this podcast to discuss an integrated approach for using three industrially based methods, Lean, Six Sigma, and Constraints Management to transform hospital operations. They have just published a book, Performance Improvement for Healthcare that explains how using the right tool for the right problem at the right time from a systems perspective, the authors show how to deliver faster results and greater return on investment.

  • Scales to any size organization and aligns easily to varying needs
  • Shortens traditional execution time from adoption to results
  • Optimizes the utilization of resources required to accomplish the desired goals
  • Breaks organizational constraints and maximizes organizational efficiency
  • Sustains the gains and defines a path to self-sufficiency
  • Achieves a global impact through strategy alignment and focused project selection
  • Shows how to integrate Constraints Management with Lean and Six Sigma to create a “best of breed” approach
  • Explains how hospitals can deploy or re-energize their performance improvement program specifically for what’s most important for their particular organization

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Download Podcast: Click and choose options: TOCHealthcare or go to the Business901 iTunes Store.

About Novaces: A management consulting firm that provides performance management, continuous process improvement (CPI), and project management services to both public and private sector organizations. NOVACES helps its clients build capabilities in today’s most effective methodologies to achieve breakthrough operational and financial results.

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Jack Vinson, a Knowledge Management and Theory of Constraints expert, was my guest on the Business901 Podcast, The New Knowledge Management Game. This is a transcription of the podcast with four pages of additional material that was cut from the podcast. 


The New Knowledge Management Game

Jack has been a knowledge management advocate and technology enthusiast and is the president of Knowledge Jolt, Inc., a knowledge management consultancy (2004 – 2007). He is deeply interested in how people work, whether that is as individuals, in small groups or within organizations. Within Knowledge Jolt, he focuses on helping organizations understand how they use their information.

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Improve throughput, cut your customers in half!

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Chad Smith of the Constraints Management Group was the guest on the Business901 Podcast. Chad is currently writing the third revised edition of Orlickys Materials Requirements Planning with Carol Ptak (a former B901 Podcast Guest).

Excerpt from the podcast:

Joe:  My customers are not only looking for shortened cycles but they’re also looking for more customization. We need customization and shorter supply chain cycles. That is reality today. Am I wrong?

Chad:  No, you are exactly right. That is why I caution people that are in the Lean community or in the TOC community to understand that the solution is not inward facing. It is outward facing. It is the interface or the integration between linkages in the supply chain and that commonly occurs from the manufacture to distributor or manufacture to customer and then manufacture back to all its suppliers.

And let’s face it. Let’s be real here. Global capacity is exceeding global demand right now. So looking for better scheduling techniques inside of four walls, instead of looking for better synchronization techniques across a supply chain or a product structure. In my opinion, is the wrong way to go.

There is a prerequisite order here to getting better. The prerequisite order is…listen to the podcast


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Chad Smith is the co-founder and Managing Partner of Constraints Management Group (CMG), a services and technology company specializing in pull-based manufacturing, materials and project management systems for mid-range and large manufacturers. Chad has a wide range of experience in successfully applying pull-based systems within a diverse scope of organizations and industries.

Since the late 1990’s Chad and his partners at CMG have been at the forefront of developing and articulating the concepts behind Actively Synchronized Replenishment as well as building ASR compliant technology (Replenishment+®). Additionally, Chad is an internationally recognized expert in the application and development of the Theory of Constraints (TOC).

This is a podcast that you do not want to miss!

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Lean Six Sigma applied to Supply Chain
Application of Lean Six Sigma to the Supply Chain

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John Arthur Ricketts, a distinguished engineer at IBM was my guest on the Business901 Podcast titled Using the Theory of Constraints in Services. This is a transcription of the podcast.


Using TOC in Services

John is a practitioner and innovator in the field of Theory of Constraints. His book, Reaching The Goal: How Managers Improve a Services Business Using Goldratt’s Theory of Constraints , was published in 2008 by IBM Press. Dr. Eli Goldratt, founder of the Theory of Constraints, said it’s one of the best books ever written on TOC. John is also the author of “Theory of Constraints in Professional, Scientific, and Technical Services (Chapter 29 of Theory of Constraints Handbook) ,” a chapter in the Theory of Constraints Handbook published in 2010.

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Theory of Constraints equals Focus and Leverage

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Dr. Charlene Spoede Budd was my guest on the Business901 Podcast titled Developing Predictive Measures with Throughput Accounting and as you would expect our discussion was about the Theory of Constraints Through-put Accounting methods and the application of the knowledge that we gain from this information. This is a transcription of the podcast.


Throughput Accounting

Dr. Budd was a contributor to the recent Theory of Constraints Handbook on two separate subjects:

  1. Traditional Measures in Finance and Accounting, Problems, Literature Review, and TOC Measures (Chapter 13 of Theory of Constraints Handbook)
  2. A Critical Chain Project Management Primer (Chapter 3 of Theory of Constraints Handbook)

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