1. Using Strategic and Tactic to MAKE TOC MAINSTREAM Summer EM 534 Contemporary Topics in Constraints Management PRESENTED BY Dr. Eliyahu M. Goldratt June 19, 2002 All materials © E. M. Goldratt, 2002

2. Obj.

3. SxSx S1S1 S2S2 S3S3 T1T1 T2T2 T3T3 TxTx

4. STRATEGY PARALLEL ASSUMPTIONS TACTIC SUFFICIENT ASSUMPTION Page 1 Level 1 TOC becomes the main way of managing organizations. - The switch from conventional to the TOC way is composed of many paradigm shifts and institutionalizing even a single paradigm shift is not easy. Build what is necessary and sufficient to ensure TOC becomes the main way of managing organizations. For TOC to become the main thing we don’t need to wait until most organizations fully implement it. It’s enough to reach the stage that most professionals and managers say that TOC should be implemented. STEP 1-1-1 - The common-sense logic of TOC and the magnitude of results it brings make TOC the perfect candidate for becoming the main way.

5. Page 2 - Level 2 - Group 1 NECESSARY ASSUMPTION To turn TOC into the main way many organizations must implement it but almost no organization will embark on a hazardous, bumpy road. STRATEGY There is a structured, credible process for organizations to lead them from ignorance to a full switch to the TOC way. - For all practical purp- oses such a full process currently does not exist. - There is enough knowledge and ability to construct, launch, support and polish such a process. PARALLEL ASSUMPT. Build “Goldratt Consulting” to launch and supervise a robust process that streamline organizations on TOC TACTIC SUFFICIENT ASSUMPT. NECESSARY ASSUMPTION No movement becomes a main movement if the professional community continues to ignore it. STRATEGY The professional community supports TOC. PARALLEL ASSUMPT. - The spoken opinion of most professionals in the field (consultants) is impacted more by self interest than their objective evaluation. TACTIC “Goldratt Consulting” brings hefty deals to the consultant companies, while all Goldratt companies remove obstacles that cause professionals to ignore/object to it. SUFFICIENT ASSUMPT. NECESSARY ASSUMPTION To rapidly make TOC the main way its strength should be exploited and the strength of TOC is its unique knowledge. STRATEGY TOC knowledge is readily available. PARALLEL ASSUMPT. - Today there is limited access to more than just shallow knowledge in TOC. TACTIC Build “Goldratt schools” and “Goldratt Marketing” to make TOC knowledge readily available in various depth the market needs. SUFFICIENT ASSUMPT. NECESSARY ASSUMPTION To rapidly make TOC the main way its impact should be exploited. STRATEGY Implementations are made known PARALLEL ASSUMPT. TOC huge successes are the best kept secret. TACTIC “Goldratt Consulting” establishes rules and procedures that will ensure that implementa- tions are documented and published. SUFFICIENT ASSUMPT. NECESSARY ASSUMPTION Trying to monopolize the market will considerably delay the time until TOC becomes main stream. STRATEGY We will build only the entities which we can not reasonably expect that others can be persuaded to do (correctly). PARALLEL ASSUMPT. - The functions to be performed by each of these three companies cannot be reasonably expected to be done (correctly) by others. - Given the existence of these three companies, other entities can be persuaded to do all other required elements well. TACTIC We build only “Goldratt consulting”, Goldratt Schools”, and “Goldratt Marketing” as detailed by the rest of the S&T tree. 2-1-1 2-1-2 2-1-3 2-1-4 2-1-5 STEP 1-1-1