Operations – DBR and Buffer Management

My Saga to Improve Production
by Dr. Eliyahu M. Goldratt

In 1982, I was chairman and a major shareholder of a company ranked by Inc. Magazine as the sixth fastest growing company in the United States. And I was extremely frustrated.

Many dozens of clients had bought our production scheduling software and, guided by our associated education, had successfully implemented it. I was frustrated that we didn’t have thousands of such clients. No, I don’t think that I was greedy or overly ambitious. I had very good reasons to expect that every plant would embrace our package with open arms.

True, the underlying concepts of our offerings were quite revolutionary at that time. They flew in the face of accepted policies and procedures, but they were obviously correct… at least to me. More importantly, our software worked. I don’t just mean that it didn’t bump, or that it performed according to the written specifications, or that it was efficient in producing reports. It really worked. Most of our clients were willing to testify that using the software they were able to increase production while decreasing inventory. Many were willing to say that their pay back, on our not exactly cheap product, was less than six months. And we had reputable clients; RCA, GE, GM, Avco, Bendix, Westinghouse, Kodak, Philips, Lucas, ITT….

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The Goal Movie
The How to Version

he inspiring story of Alex Rogo, who uses the principles of the Theory of Constraints like bottlenecks, throughput, and flow balancing to transform his mediocre division into a money-making machine. 

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TOC Insights into Operations
by Eli and Rami Goldratt
TOC Insights DBR, Buffer Management, Difference between Plant type A, type T and type I
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