A Process Of On-Going Improvement (POOGI) - Part 36

We are continuing our series based on The Goal by Eliyahu M Goldratt and the Theory of Constraints. {This series was co-written with Brad Stillahn.}

The good news is that improved R-I-T “Ready-to-be-Implemented Technological Advance” processes are available.

The bad news is that the Western World is implementing these processes slowly, and much slower than some other parts of the world.

Here is a warning from Dr. Goldratt, developer of the Theory of Constraints, in an introduction to his book “The Race” in 1986:

“The Race is about our standard of living and how we can increase it. Today, we are facing a real threat in the Western World that the opposite will happen. The threat is not just to us. If our living standard declines, everyone else on this globe is adversely affected. Both the source and the solution to the problem lie in the same place—manufacturing. Manufacturing has been the major wealth generator of our industrialized world. This ability to generate wealth has mad our standard of living the envy of the rest of the world. If we continue to lose our manufacturing base, and we are losing it rapidly, we and everyone else will certainly live less well.”

Of course, Dr. Goldratt’s warning was also prophetic. The rest of the world has outpaced the Western World since 1986. It is winning the race.

For years, Dr. Goldratt refused to have his books translated into Japanese. He thought and felt that Japan was so far advanced that if it applied the improved processes of the Theory of Constraints, that the trade imbalance would further increase, threatening to destabilize the world economy. Six years ago, when the U.S. and European economies had closed the gap, and Japan had stagnated, he relented. In the first month of its release, “The Goal” sold a half-million copies. Since then, its sales are equal to the sales in the rest of the world.

Japan is adopting TOC at a much faster rate than the Western World. For example, last year Japan announced the requirement that all companies supplying infrastructure projects must use Critical Chain project management, the TOC methodology for managing projects (and delivering them in half the time).

The TOC body of knowledge continues to grow. TOC is very compatible with Lean and Six Sigma. Combined, they lead to even better results than implementing any one. The technology is there, and it is growing at a faster rate than companies are implementing it.

If your company is not implementing TOC, Lean, and Six Sigma—Ready to Implement Technology—then your company is not achieving results that are possible. These results can be achieved in a remarkably short time. These results include 100% due date performance, decreased inventory (freeing up cash), and increased sales.

You have a Technology Gap. What are you going to do about it?

...to be continued.

Here's to maximizing YOUR profits!

Dr Lisa Lang
(c)Copyright 2008, Dr Lisa, Inc. All rights reserved.