Eliyahu M. Goldratt
|Eliyahu M. Goldratt|
March 31, 1947|
|Died||June 11, 2011
|Fields||Theory of Constraints
|Known for||Theory of Constraints
Cause and Effect thinking
Slayer of Paradigms
Eliyahu Moshe Goldratt (March 31, 1947 – June 11, 2011) was an Israeli physicist who became a business management guru. 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 the stories, such as in his book "The Goal", 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.
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. Dr. Goldratt died June 11th, 2011 at noon, at his home in Israel.
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
Within the company, Goldratt noticed elements that made him uncomfortable 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.
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. Finally, with help from Larry Gadd the owner of North River Press, the book was published and became a great success. 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 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.
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).
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Goldratt produced many works. Some of the more noteworthy are:
- The Race (1986) further develops the logistical system called drum-buffer-rope (DBR), based on metaphors developed in The Goal.
- The Haystack Syndrome (1990) looks deeper at the idea of performance measurements, examines differences between data and information, and explains the logic of the need for information.
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. A second edition is planned for publishing which 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 (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.
- 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
- 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, 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
- McClenahen, John S: "Manufacturing's Influential Thinkers & Doers" Retrieved on: October 24, 2008.
- "Tales out of business school." The Economist. (January 21, 1995). 334 (7898), 63
- "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.
- G. Bylinsky. An Efficiency guru with a brown box. Fortune; 120 (September 1983)
- Goldratt, E. M.; Cost accounting is enemy number one of productivity. International Conference Proceedings, American Production and Inventory Control Society (APICS) (October 1983).
- Goldratt, Eliyahu M. & Plossl, George; A Town Without Walls. Whitepaper, distributed during APICS 1984 International Conference in Las Vegas/USA
- Goldratt, Eliyahu M.; My Saga to Improve Production. For instance, in the second edition of The Goal
- Laurence Gadd. Preface to The Choice
- "AGI Goldratt Institute". Retrieved June 13, 2011.
- Paul H. Selden (1997). Sales Process Engineering: A Personal Workshop. Milwaukee, WI: ASQ Quality Press. pp. 33–35, 264–268.
- 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
|Wikimedia Commons has media related to Eliyahu M. Goldratt.|
- Biography of Dr. Eliyahu M. Goldratt
- Profile at his Goldratt Group site
- MP3 60 minute Interview with Dr Goldratt, November 2009