17th International Conference of the

TOC Practitioners Alliance - TOCPA

www.tocpractice.com

15 May 2015, Vilnius, Lithuania

TOC After
Dr. Eli Goldratt
Oded Cohen, TOC Strategic Solutions, Israel
15 May 2015

Oded Cohen
Oded has over 35 years of experience in developing,
teaching and implementing TOC methodology,
solutions and implementation processes working
directly with Dr. Goldratt all over the world. Among the
countries to which Oded brings his expertise are the
USA, Canada, Japan, India, China, the UK, Poland,
Russia, Ukraine, Colombia, Chile, Peru, Turkey and
many others.
Oded has authored multiple TOC
contributed to numerous TOC books.

articles

and

Oded in the is the author of Ever Improve A Guide to

Managing Production the TOC Way, published in June
2010. Oded co-authored the book Deming & Goldratt:
The Theory of Constraints and the System of
Profound Knowledge The Decalogue.
Together with Jelena Fedurko Oded has co-authored
the book Theory of Constraints Fundamentals.
Oded is International Director of TOC Strategic
Solutions Ltd and Founder and Co-President of
TOCPA.
www.tocpractice.com

oded.cohen.gs@gmail.com
www.toc-strategicsolutions.com

17th International Conference of the TOC Practitioners Alliance - TOCPA

Dr. Eli Goldratt

1947 2011

In 1975 Eli Goldratt got his PhD in Physics and

started a software company OPT Israel.
This was the beginning of the Management Approach
known as TOC Theory of Constraints
www.tocpractice.com

17th International Conference of the TOC Practitioners Alliance - TOCPA

Goldratts TOC
Goldratt believed in Knowledge.
He stated that Knowledge should be:
Practical
Bring benefits
In the public domain
Knowledge is not fixed. It continuously expands.
He chose POOGI the Process of Ongoing
Improvement as the main driver for pushing the
knowledge boundaries.
www.tocpractice.com

17th International Conference of the TOC Practitioners Alliance - TOCPA

Goldratts POOGI
Goldratts approach to POOGI was driven by:
The strong conviction that it is possible to
improve the performance of every system.
The desire to bring the basics of hard
science to management by using Cause &
Effect.
The belief that it is possible to use logic in
managing systems and people.
The search for the new rules for the system
and the way to develop them.
www.tocpractice.com

17th International Conference of the TOC Practitioners Alliance - TOCPA

TOC
Knowledge Development
1975-1986 - The OPT Days
Software + Training + Thoughtware
1987-1997 - Goldratt Institute
Educating Managers: Jonah programs and
Thinking Processes
1998-2000
Marketing TOC
2001-2011 Goldratt Group
Holistic approach to manage companies
Viable Vision
www.tocpractice.com

17th International Conference of the TOC Practitioners Alliance - TOCPA

TOC Evolution over last 35+ years

Production

Selling OPT:
The Goal (1983)
The Race (1986)

Production, Throughput Accounting

OPT, The Goal, The Race, The Haystack Syndrome, Production the TOC Way

1975

1980

www.tocpractice.com

1985

1990

1995

2000

2005

2011

17th International Conference of the TOC Practitioners Alliance - TOCPA

TOC Evolution over last 35+ years

Thinking Processes (TP)

1990 - What is this thing

called TOC
2008 The Choice

What to change
What to change to
How to cause the change
The Thinking Processes
Thought-ware, Jonah Program

The Choice (2008)

Production, Throughput Accounting

OPT, The Goal, The Race, The Haystack Syndrome, Production the TOC Way

1975

1980

www.tocpractice.com

1985

1990

1995

2000

2005

2011

17th International Conference of the TOC Practitioners Alliance - TOCPA

TOC Evolution over last 35+ years

TP and Applications

Distribution, Marketing, Management Skills

Its Not Luck
The Thinking Processes
Thought-ware, Jonah Program

The Choice (2008)

Production, Throughput Accounting

OPT, The Goal, The Race, The Haystack Syndrome, Production the TOC Way

1975

1980

www.tocpractice.com

1985

1990

1995

2000

2005

2011

17th International Conference of the TOC Practitioners Alliance - TOCPA

TOC Evolution over last 35+ years

Project Management
CCPM
1997 - Critical Chain

Project Management
Critical Chain
Distribution, Marketing, Management Skills
Its Not Luck
The Thinking Processes
Thought-ware, Jonah Program

The Choice (2008)

Production, Throughput Accounting

OPT, The Goal, The Race, The Haystack Syndrome, Production the TOC Way

1975

1980

www.tocpractice.com

1985

1990

1995

2000

2005

2011

17th International Conference of the TOC Practitioners Alliance - TOCPA

TOC Evolution over last 35+ years

Body of Knowledge
1999 GSP
Goldratt Satellite Program
The TOC Holistic Approach
8 Video Sessions
Project Management
Critical Chain
Distribution, Marketing, Management Skills
Its Not Luck
The Thinking Processes
Thought-ware, Jonah Program

The Choice (2008)

Production, Throughput Accounting

OPT, The Goal, The Race, The Haystack Syndrome, Production the TOC Way

1975

1980

www.tocpractice.com

1985

1990

1995

2000

2005

2011

17th International Conference of the TOC Practitioners Alliance - TOCPA

TOC Evolution over last 35+ years

TOC and ERP

2000 Necessary but
Not Sufficient

N&S 10 CDs with the

new rules
TOC & Technology
Necessary but not Sufficient
The TOC Holistic Approach
8 Video Sessions
Project Management
Critical Chain
Distribution, Marketing, Management Skills
Its Not Luck

The Thinking Processes

Thought-ware, Jonah Program

The Choice (2008)

Production, Throughput Accounting

OPT, The Goal, The Race, The Haystack Syndrome, Production the TOC Way

1975

1980

www.tocpractice.com

1985

1990

1995

2000

2005

2011

17th International Conference of the TOC Practitioners Alliance - TOCPA

TOC Evolution over last 35+ years

Business Strategy
2006 - S&T
Strategy & Tactics Tree

TOC & Business Strategy

- Viable Vision - S&T
TOC & Technology
Necessary but not Sufficient
The TOC Holistic Approach
8 Video Sessions
Project Management
Critical Chain

Distribution, Marketing, Management Skills

Its Not Luck
The Thinking Processes
Thought-ware, Jonah Program

The Choice (2008)

Production, Throughput Accounting

OPT, The Goal, The Race, The Haystack Syndrome, Production the TOC Way

1975

1980

www.tocpractice.com

1985

1990

1995

2000

2005

2011

17th International Conference of the TOC Practitioners Alliance - TOCPA

TOC Evolution over last 35+ years

Retail
2009 Isnt It Obvious

Retail
- Isnt it obvious
TOC & Business Strategy
- Viable Vision - S&T
TOC & Technology
Necessary but not Sufficient
The TOC Holistic Approach
8 Video Sessions
Project Management
Critical Chain
Distribution, Marketing, Management Skills
Its Not Luck

The Thinking Processes

Thought-ware, Jonah Program

The Choice (2008)

Production, Throughput Accounting

OPT, The Goal, The Race, The Haystack Syndrome, Production the TOC Way

1975

1980

www.tocpractice.com

1985

1990

1995

2000

2005

2011

17th International Conference of the TOC Practitioners Alliance - TOCPA

What knowledge is there

in TOC?
THEORY OF CONSTRAINTS

5 Focusing
Steps

Thinking
Processes

Throughput
Accounting

1.Throughput (T):
1.Identify the
U-Shape (1-5)
The rate at which
Systems
1.UDE Evaporating
the system generates
Constraint
Cloud (EC)
money through
2.Decide how to
2.Current
Reality
Sales
(SR - VC)
Exploit the
Tree
(CRT)
2.Investment (I): The
Constraint
3.Core
Conflict
money tied up in the
3.Subordinate
Cloud
(CCC)
organization
everything to the
above decisions 4.Future Reality Tree 3.Operating Expenses
(FRT)
(OE): All the money
4.Elevate the
spent by the system
5.Negative Branch
System
to convert
Reservations (NBR)
Constraint
investment into
5.If in the previous 6.Pre-requisite Tree
throughput
(PRT)
steps a constraint
4.Net Profit (NP) = T
has been broken,
7.Transition Tree
OE
Go back to step
(TrT)
5.Return on
8.Strategy & Tactics
Investment (ROI) =
(S&T)
NP/I
www.tocpractice.com

TOC Generic
Solutions
1.Operation
MTO, MTA
2.Finance
Throughput Acct.
3.Projects Critical
Chain
4.Logistics Pull
Replenishment
5.Marketing
Mafia offers
6.Sales Buy-in
Process
7.People
Empowerment
8.Strategy holistic
approach

6 N&S questions on
Technology
1.What is the power of
the technology?
2.What limitation does
it diminish?
3.What old rules helped
accommodate the
limitation?
4.What are the new
rules that should be
used now?
5.In light of the change
in rules, what changes
are required to the
technology?
6.How to cause the
change (the new
win/win business
model)?

17th International Conference of the TOC Practitioners Alliance - TOCPA

Where TOC knowledge

is applied?
Industries

Areas

Operations management
Finance & Measurements
Project management
Distribution & Supply Chain
Sales
Marketing
Managing People
Goldratt Thinking Processes

www.tocpractice.com

Manufacturing
Distribution
Financial Services
Health
Defence
Government
Public service
Education
and more

17th International Conference of the TOC Practitioners Alliance - TOCPA

Knowledge is Not Enough

To improve the performance of any system we
need:
The Relevant Knowledge
The know-how for applying the knowledge:
technically and managerially
Practitioners to lead (and to assist) the
implementation
Goldratt was active in all three areas.
Goldratt initiated activities and organizations in
order to ensure that TOC will continue after him.
www.tocpractice.com

17th International Conference of the TOC Practitioners Alliance - TOCPA

So, what is next?

Eli Goldratt passed away in June 2011.
Four years have passed.
TOC has not stopped, nor stalled!
There is no lack of knowledge.
A great deal of know-how has been
gathered.
What is needed is to preserve the existing
knowledge and know-how and to provide a
platform for expanding it.
www.tocpractice.com

17th International Conference of the TOC Practitioners Alliance - TOCPA

Custodians of
The TOC Knowledge
There are organizations that are the custodians of the
knowledge (majority of them are non for profit):

TOCICO TOC International Certification

Organization
TOCPA TOC Practitioners Alliance
TOCfE - TOC for Education
Goldratt Marketing Group TOC.tv
Goldratt Group
AGI
Goldratt Chinese Alliance
Universities around the world

www.tocpractice.com

17th International Conference of the TOC Practitioners Alliance - TOCPA

Sharing Experience
The TOC knowledge is in the public domain.
Learning and implementing are paid services.
TOC practitioners gain experience while
implementing TOC Solutions and methodology.
Practitioners can learn from each other and
benefit from the collective know-how of the
community.
That is the purpose of TOCPA!
www.tocpractice.com

17th International Conference of the TOC Practitioners Alliance - TOCPA