Allied Academies International Conference page 9
Proceedings of the Academy of Strategic Management, Volume 2, Number 2 Las Vegas, 2003
THE APPLICATION OF GOLDRATT’S THINKING
PROCESS TO PROBLEM SOLVING
Lloyd J. Taylor, III, P.E., Ph.D., University of Texas taylor_l@utpb.edu R. David Ortega, University of Texas
ABSTRACT
The “Thinking Process” as introduced Dr. Eliyah Goldratt, in The Goal and further expounded upon in, It’s Not Luck, is based on the Socratic teaching method of if …then reasoning.
This type of deductive reasoning is extensively used in the field of medicine, in the diagnosis and treatment of disease and for determining clinical pathways and other fields of science. Even though medical professionals find it easy to map out the cause and effect relationships when dealing with a disease process, few have explored the benefits of using their highly developed intuitive thinking skills in the area of solving problems in management. This paper will detail the use elements of the
Thinking Process, as outlined by Dr. Goldratt, in an attempt to elicit a logical, comprehensive solution to a multifaceted, intricate problem.
INTRODUCTION
The emphasis of this paper concerned it’s self with the Thinking Process brought to light, by
Elli Goldratt. Goldratt feels that companies should not be broken up to create efficiencies at any part of production. He suggests that by disturbing a link in the chain of production one could cause problems with production (Goldratt 1992-c).
GOLDRATT AND THE THINKING PROCESS
In the 1980’s, Dr. Eliyahu Goldratt [1992-c], a physicist, wrote a book entitled “The Goal.”
In his book, Goldratt relates the story of an embattled plant manager searching for ways to improve plant performance. With the help of an old college professor, the plant manager not only learns how to improve the performance of his plant but also a new method of identifying and resolving problems. Goldratt’s Theory of Constraints (TOC) focuses on the efficiency of all processes as a whole rather than the efficiency of any single process.
The principles of the Theory of Constraints and the Thinking Process are not new to the world. They have been used for many years in the sciences and medicine. What is new is the fact that Goldratt has applied the process to manufacturing and other areas of the business world.
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Las Vegas, 2003 Proceedings of the Academy of Strategic Management, Volume 2, Number 2
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The next day, back at work at the plant, he holds a meeting and discusses with all of his associates what needs to be done. He talks to the plant controller about his findings. The book discusses how the plant can make money by increasing net profit while increasing net cash flow. After discussing with the controller, he again calls Jonah to discuss the state of the plant and arranges a breakfast with Alex. Jonah also discusses in detail the goal of the plant with him.
The Goal: A Process of Ongoing Improvement by Dr. Eli Goldratt and Jeff Cox is a fictitious novel based on very real business practices. Goldratt and Cox’s writing focuses on a non-traditional approach to introducing Goldratt’s own Theory of Constraints. The plot centers around Alex Rogo and his journey to find solutions to save both his manufacturing plant and marriage.
Dowding, K. (2011). Rational choice theory. In M. Bevir (Ed.), The SAGE Handbook of Governance (pp. 36-40). Retrieved from http://books.google.com/books?id=dU8BNNYnZesC&printsec=frontcover
Alex Rogo is successful in turning around his plant because he unwittingly, or by design, follows this same ordered thinking process wherein he goes from first defining his fundamental measures and then exploring the effects of different parts of his plant on these measures. He is then able to identify his constraints and effect changes that allow him to maximize his plants performance within the constraint. Later when he finds that his constraint is no longer physical but has become something intangible beyond his plant, he identifies it correctly as a market constraint and tries to improve it by encouraging his sales staff to come up with new orders. And if all this wasn’t enough, Alex has also managed to save his marriage!
Symbolic interactionist’s like to understand the world through understanding the specific meanings and causes that society attributes to particular events. When analyzing health and illness symbolic interactionist’s like to look at individuals or groups and how they give meaning to their particular illness. Then they take that information and see how it affects their relationships with others and how it makes them view themselves. The symbolic interactionist theory also claims that we socially construct health and illness much like we do with race. For instance if someone spends his days staring at the sun and goes blind people blame him for staring at the sun. They believe that if they do not engage in sun staring then they will not go blind. The same reasoning usually follows people who get lung cancer or AIDS. The person is blamed for having the illness regardless of how they got it; people assume the sick brought it upon themselves.
The importance of accurate cost allocation is an essential component to the manufacturing process. Explain the types of problems companies encounter during the allocation process, include specific examples as part of your answer.
The human body is the most complex organism in the world. A vast majority of society never gives it real thought, but our body is a well-oiled machine composed of several systems with separate functions, yet they all work together. No man can recreate an exact working replica of a human; even with all of our technology, we still do not fully understand it. Each day, anatomists and physiologists are getting closer, by making medical breakthroughs. Therefore, since the study of the human body constantly evolves, so does the study of medicine.
The Tame problems are the ones which have a well defined problem statement and the rational approa...
“The Goal” is as it vividly explains, is a book on achieving goals. Eliyahu Goldratt, world famous Israeli physicist turned business consultant, the creator of the “Theory of constraints”, in his work “The Goal”, explains a lot about managerial skills, to achieve higher productivity and efficiency, in a simple and lucid manner.
Solomon, Robert C. Philosophy East and West. Vol. 53, No. 4 (Oct., 2003), pp. 435-454
Paciotti, Brian . "Classical Theory." Lecture 8: Classical Theory, Deterrence Theory, Rational Choice Theory, Routine Activities Theory. http://www.brianpaciotti.com/lecture%208%20FALL%2005.pdf (accessed February 12, 2014).
Creative problem articulation and solving process displays challenges and issues which strategists have to surmount to achieve a strategic change. Traditional perception that a strategy process takes the linear form of analysis, formulation and implementation is therefore widely criticized as strategists view strategic thinking as more intuitive and creative rather than linear or rational (De Wit & Meyer, 2005). The strategy tensions have to be analyzed and understood so as to develope more effective
Critical thinking regularly involves the capability to interpret information and make knowledgeable decisions based on such information. Additionally, problem solving is frequently theorised as the use of critical thinking skills towards the effective solution of a specific problem or towards a specific end goal. Critical thinking is the disciplined art of ensuring that you use the best thinking you are capable of in any set of circumstances. The general goal of thinking is to figure out some situation” (Critical Thinking, 2001, p.1), solve some problem, answer some questions, or resolve some issue. It also is a process in which a person pursuits reliable and pertinent information about the world. Critical thinking is often described as reasonable, ruminative, trustworthy, and a well-practiced form of thinking that assists people with deciding what they should believe in and what actions should be taken. A practiced critical thinker will ask good questions, collects pertinent data, categorizes common characteristics, logically reasons with the new data and then he or she will come to a trustworthy and dependable conclusion. Critical thinking makes use of many processes and procedures. Some processes include but is not limited to asking questions, making judgments, and identifying