History of Goldratt's Theory of Constraints (TOC)
The Theory of Constraints (TOC) is was introduced in 1984 by Dr. Eliyahu M. Goldratt in his bestselling business novel "The Goal," and spread rapidly thereafter. The Theory of Constraints Institute was established on June 11, 2012 to commemorate the first anniversary of Eli's untimely death. This brief History of TOC summarizes key milestones along the way of the overall movement.
Background & Influences
Dr. Goldratt completed his BS from Tel Aviv University; then completed his MS and Doctor of Philosophy from Bar-llan University. This grounding in physics and the accurate sciences strongly influenced his ideas and work throughout his life.
After helping several Israeli manufacturers, Goldratt left academics 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 and formed the early seeds of the Theory of Constraints.
After helping several Israeli manufacturers, Goldratt left academics 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 and formed the early seeds of the Theory of Constraints.
Early Antecedents
Henry Ford
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In his paper "Standing on the Shoulders of Giants," Dr. Goldratt credits Henry Ford (founder of Ford Motor Company) and Taiichi Ohno (creator of the Toyota Production System) for their seminal work:
"The daring nature of Ford’s [assembly line] method is revealed when one realizes that when the allotted space is full, the workers feeding it must stop producing. Therefore, in order to achieve flow, Ford had to abolish local efficiencies." |
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'Ohno demonstrated that the concepts Ford introduced are not restricted to mass production of a single type of product. Even though the obstacles to apply these concepts to a less restrictive environment looked insurmountable, Ohno’s genius and tenacity proved to us, not only that it can be done but how to do it.'
"The answer was given by Ford and Ohno. Through their work they decisively proved that contrary to the common belief, striving to constantly activate all resources all the time is not a recipe for effective operations." |
Taiichi Ohno
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Timeline
We can trace TOC's historical development by following the trail of books and artifacts that Dr. Goldratt left behind:
Date
1984
1986 1988 1990 1990 1994 1996 1999 1997 1998 2000 2008 2010 2011 2012 |
Application
Production
Throughput Accounting TOC Thinking Processes Five Focusing Steps Information Systems & Measurements Marketing & Strategy Production Simulator TOC Comes to India Critical Chain Project Management (CCPM) TOC Holistic Approach New Technology Management Philosophy Retail & Distribution Dr. Goldratt passed Carry on Eli's life goal: Teaching the world how to think ... |
Learn More
The Goal: A Process of Ongoing Improvement (book with Jeff Cox)
The Race (book) Jonah Program (2-week workshop) Theory of Constraints (book) The Haystack Syndrome: Sifting Information out of the Data Ocean (book) The Goal II: It's Not Luck (book) Production the TOC Way (book with simulator) Ravi Gilani Brings TOC to India Critical Chain (book) Goldratt Satellite Program (8 videos) Necessary But Not Sufficient (book with Ptak & Schragenheim) The Choice (book with Goldratt-Ashlag) Isn't it Obvious (book) The Theory of Constraints Institute was founded |
