1. QUALITY OF MANAGEMENT GURUs : DR ELIYAHU M. GOLDRATT BY KLUANG MAN GROUP’S MEMBER: ROSMALINA BT HUSSIN (PA13014) NUR HIDAYAH BT AHMAD (PB13062) NOOR FAAIRA BT CHE SUHAIMI (PB13070) MOHD FAIRUL BIN JAHAYA (PB13097) NOR AMIRAH HUDA BT SELAMAT (PC13094) SYAFIQAH IZZATI BINTI MOHD ROSLAN (PC13096) GROUP’S MEMBER: ROSMALINA BT HUSSIN (PA13014) NUR HIDAYAH BT AHMAD (PB13062) NOOR FAAIRA BT CHE SUHAIMI (PB13070) MOHD FAIRUL BIN JAHAYA (PB13097) NOR AMIRAH HUDA BT SELAMAT (PC13094) SYAFIQAH IZZATI BINTI MOHD ROSLAN (PC13096)

2. History

3. Life Name: Dr. Eliyahu Moshe Goldratt. Born: March 31, 1947, Mandatory Palestine Died: June 11, 2011, Israel Parents: Avraham Goldratt Education:Bachelor of Science degree from TelAviv University, and his Masters of science and Doctorate of Philosophy degrees from Bar-Ilan University. Profession: Physicist who became a business management guru

4. Work 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. The Thinking Processes, Drum-Buffer-Rope, Critical Chain Project Management(CCPM) and other TOC derived tools. Authored several business novels and non-fiction works

5. Have a some experience helping Israel manufacturers. After that his left the academic world and join a company called Creative Output.

6. METHOD OR APPROACH

7. METHOD/ APPROACH METHOD/ APPROACH THEORY OF CONSTRAINT  The Theory of Constraints (TOC) is an overall philosophy developed by Dr. Eliyahu M. Goldratt, usually applied to running and improving an organization.  TOC is used as a main tool to achieve project objectives. THEORY OF CONSTRAINT  The Theory of Constraints (TOC) is an overall philosophy developed by Dr. Eliyahu M. Goldratt, usually applied to running and improving an organization.  TOC is used as a main tool to achieve project objectives.

8. THINKING PROCESSES

10. 5 FOCUSING STEPS

11. The steps in applying TOC (1)Identify the system’s constraints In the first step, an organization identifies the part of the system that constitutes the weakest link. Then determine whether it is a physical constraint or a policy-related issue. (2) Decide how to exploit the system’s constraints to manage them so that they just provide what is needed to match the output of the constrained resources. (3) Subordinate everything else to the above decision in Step2. Since the constraints are keeping us from moving toward our goal, all the resources are applied that can assist in breaking them.

12. (4) Elevate the system’s constraints. If we continue to work toward breaking a constraint at some point the constraint will no longer be a constraint. The constraint will be broken. (5) If the constraint is broken, return to Step 1. When that happens, there will be another constraint, somewhere else in the system that is limiting progress to the goal.

13. ADVANTA GE OF QUALITY APPROA CH

14. Advantages: Potential for tremendous increases in productivity with minimal changes to operations. Most powerful and cost effective tool for increasing production capacity. Very simple to communicate and apply, making it ideal for shop floor teams. Great for fostering teamwork as different areas become aware of the constraint and the need to work together to assist the constraint process.

15. Great process for kick starting improvement efforts as it provides immediate and very Tangible benefits. Allows growth of turnover/productivity without the need for additional space or staff. Provides a means to evaluate the true value of changes (using T, O, I), and utilize this to select the best options, and drive the right behaviour/decisions.

16. EXAMPLE OF APPLICATION ( IN REAL INDUSTRY )

17. The Book: THEORY OF CONSTRAINTS What is it ? -Theory and tools to gather, analyze, solve and implement solutions of management problems. -This will lead to the occurrence of questions : -> What to change? -> How to implement the change? -Therefore, TOC tools is fully support the answering of these questions.

18. Meaning of constraints What is that ? -> Anything that prevents the system from achieve the goal. -> There are not tens or hundreds of constraints. -> Can be internal and external to the system. 1) Types of internal constraints - Equipment - People - Policy In TOC, it is used for focus mechanism for management of the system. In addition, it is written into the mathematical axpressions.

19. Example of Applications in TOC 1- Operations - This is include manufacturing operations and operations management. - The solution is seeks to pull materials through the system. - The primary methodology that use is called buffer-rope and a variation is called drum-buffer-rope. - For more understand, the drum is the physical constraint of the plant while the work centre limits the ability of the entire system to produce more. - So, the drum has work and processed does not get wasted.

20. 2- Supply chain / logistics - To create flow of inventory. - To eliminate surplus and ensure greater availability. - TOC distribution effective when used to address a single link in the supply chain even if that system comprises many different companies. - TOC distribution solution also is to establish a decisive competitive edge based on extraordinary availability by reducing the damages that caused when the flow of goods is interrupted by shortage and surpluses. - This approach uses several new rules to protect availability with less inventory than is conventionally required.

21. 3- Finance and accounting - Accounting suggest that one examine the impact of investments and operational changes on the through put of the business. - It is called an alternative cost accounting. - The primary measures for a TOC view finance and accounting are: operating expenses and investment, calculated from sales minus (totally variable cost) and totally variable cost calculated as cost of raw materials.

22. 4- Project Management -Critical Chain Project Management (CCPM) -All activities converge to a final deliverable. -To protect the project -Must be internal buffers to protect synchronization points. -A final project buffer to protect the overall project.

23. 5- Marketing and sales -Explicitly acknowledged in the field of sales process engineering. -Apply Drum Buffer Rope to the sales process that similar with the way its applied to operations. -Appropriate when constraint in the sales process. -Includes the topics of funnel management and conversion rates.

24. REFERENCES

25. 1) http://en.wikipedia.org/wiki/Eliyahu_M._Goldratt 1) http://en.wikipedia.org/wiki/Eliyahu_M._Goldratt 2) http://www.scienceofbusiness.com/home/what-is-theory-of- constraints-toc/ 3) http://www.bexcellence.org/Theory-of-Constraints.html 4) http://www.tocico.org/page/goldratt_foundationhttp://www.bexcellence.org/Theory-of-Constraints.htmlhttp://www.tocico.org/page/goldratt_foundation