(Note for this Spring 2007 Offering, the primary focus will be on Understanding, Creating and Implementing your own Viable Vision. And, we will also review the TOCICO Fundamentals and TOC-ICO Applications Exams. Also note, students will have a special offer of all TOC INSIGHTS for $40 for the semester. )

James R. Holt, Ph.D., PE
jholt@wsu.edu
429 SE 13th Court
Gresham, OR 97080-9361

Campus Phone (to leave a message): (509) 335-0125
Campus Fax: (509) 335-4725
Home Office Phone:  (503) 669-6676

James R. Holt, Ph.D., PE., is an Associate Professor of Engineering Management at Washington State University - Vancouver. He teaches Organizational Behavior, Operations Research, Statistics, Engineering Economics, Simulation, Information Systems, Constraints Management and other special topics. He was a Principal Consultant with Management Advisory Group, Inc. and a Certified Associate of the Avraham Y. Goldratt Institute. Prior to his consulting work, he was Department Head, Engineering and Environmental Management at the Air Force Institute of Technology, Wright-Patterson AFB, Ohio. Dr. Holt retired from the Air Force with 20 years experience in engineering, computer and technology management. He has published many articles on supply chain management, project management, maintenance and artificial intelligence. He holds a BS in Mechanical Engineering from Utah State University, an MS in Facilities Engineering from the Air Force Institute of Technology and a Ph.D. specializing in Industrial Engineering / Business Administration from Texas A&M University. Dr. Holt has taught at the graduate level 13 years and has advised 66 engineering student theses and dissertations on a wide variety of topics. He has lived in the Portland area for 8 years and is active with professional and community organizations. Dr. Holt is certified in the TOC Thinking Process, TOC Operations Management, TOC Project Management and TOC Holistic Strategy by the Theory of Constraints International Certification Organization. He is happily married to Suzanne for 30+ years; they have five children and five grandchildren.

Background: The Theory of Constraints continues to grow maturing in theory and robust applications. Eli Goldratt's developed the theory 70s, implemented OPT-the first finite capacity software in the early 80s, published the ever popular text The Goal in the mid 80s, documented the Thinking Processes in the late 80s, delivered Critical Chain as the project management solution in the mid 90s and gave breakthrough solutions for supply chains in 2000. The Theory of Constraints' applications span from industrial settings, sales, marketing, distribution, service industry, education, and medical care to human behavior and research areas. TOC tools have helped many companies make dramatic turn-a-rounds, resolved family troubles, improved educational setting and set records in house building and sailing.

In the past five years, public knowledge of the Theory of Constraints has mushroomed. There are thousands of articles written and presented. There are many texts, and published case studies. The early tools have been refined, improved and polished as TOC applies continuous improvement to itself. These improvements have highlighted how TOC focuses and magnifies the effect other valuable management tools (JIT, Lean, Six Sigma, Agile, Supply Chain, Deming, Covey, Senge, Triz, … ). And, how the long term application of TOC needs to aggressively encompass the right parts of these valuable tools for continuous system improvement.

Those who received Theory of Constraints Training prior to 2000 need to revisit the theory and practices to renew their understanding and find out the new, improved techniques. Also, with such a broad range of applications, it is wise to see how these applications overlap and blend to form a Throughout Operating Strategy driven by the Theory of Constraints. The new knowledge of the TOC Holistic Approach and the TOC Strategy and Tactics Tree are important enough for all TOC Experts to renew their understanding.

This course assumes the student is generally familiar with a wide body of knowledge in the Theory of Constraints. And, the student must have satisfactorily completed EM 526 Constraints Management or learned the Goldratt Thinking Process Tools from other recognized sources (contact the Instructor if you have questions). Also, the student should be well familiar with the proven solutions of the Theory of Constraints taught in EM 530 Applications in Constraints Management . Students should have tried implementing some TOC activities previously as well as continuing personal study beyond whatever formal course they have completed.

This course, Contemporary Topics in Constraints Management, provides an opportunity to revisit the Thinking Process tools and find out how to use them quickly. It reviews the proven solutions and brings the student current information on recent improvements. And, it introduces how the proven solutions can be blended with other technologies into an enterprise wide implementation and the full supply chain solution.

 Thinking Processes: Students are expected to complete a full Thinking Process analysis based upon their local environment (well within their sphere of responsibility) using the newest TP Tools. This is an opportunity to improve their ability using the thinking processes and the Categories of Legitimate reservation. Students may choose to form groups and tackle a more significant challenge. In either case, their work would be available for scrutiny to the whole class so all may benefit. (Sensitive work can be held private as usual).

 Drum-Buffer-Rope: Schragenheim and Dettmer developed a Simplified Drum-Buffer-Rope implementation that works extremely well in market constrained systems (90% of today's world). This technique quickly stabilizes logistics system so organizations can move to the next level.

 Critical Chain: While most students have some knowledge of Critical Chain, there are many new software tools and techniques for multi-project environments and creating cultural change in projects. It appears the most valuable and lasting successes of all the Theory of Constraints solutions will be in project management.

 Replenishment: The full replenishment / distribution solution is now fully available when you combine Its Not Luck and Necessary But Not Sufficient. We will review this valuable solution for flow processes as it relates to implementing the Enterprise Wide Solution.

 Supply Chain: 'Supply chain' is one of the hottest management topics. It appears anyone who can spell it or have a computer program that shares information can publish articles and sell supply chain software. When so many ideas (and contradictions) abound, its good to learn the Theory of Constraints Supply Chain Solution. The TOC approach brings together the correct principles and approaches and focuses the energy and talents of many other techniques. Knowledge of the correct way to do supply chain cuts through the fog of confusion.

 Strategy: As a firm integrates across independent business units, it is wise to develop a Throughput Operating Strategy that will benefit every member of the organization and the chain. In the past, such a strategy was left to chance or encouraged with barbed jabs at senior management. But, with a full understanding and the correct exposure, whole management teams can implement correct TOC base strategy quickly. Tools are available to assist the TOC expert.

 TOC Holistic Approach: Implementing the Theory of Constraints creates a paradigm shift in organizations. This paradigm shift to the better creates many new challenges for the firm. The result is the firm has changed. No longer can old paradigms be used to make quick decisions. This often leads to confusion, insecurity and conflict. A much better solutions is to implement a holistic solution from the top down. The holistic solution includes all of the TOC applications: Critical Chain, DBR, Measurements, Replenishment and Human Behavior. Implementing in this fashion creates paradigm shifts in several areas allowing massive improvements that cannot be duplicated by competition for many years.

 TOC Expert: There is now a Theory of Constraints International Certification Organization (TOC-ICO). While the TOC-ICO is developing its structure, students can each prepare to become certified TOC experts. We will discuss the criteria and preparation necessary for certification.

1.  TOC INSIGHTS software for Operations, Project Management, Finance and Measures, Distribution (Students receive special download instructions for the TOC INSIGHTS at $10 each. The student TOC INSIGHTS expire at the end of the semester)
   
2. It's Not Luck, Eliyahu M. Goldratt, North River Press 1994, (800) 486-2665, ISBN 088427-115-3.
   
3. Goldratt's Theory of Constraints: A Systems Approach to Continuous Improvement, H. William Dettmer, ASQC Quality Press, 1997, (800)248-1946, ISBN 0-87389-370-0.
   
4. Critical Chain, Eliyahu M. Goldratt, North River Press 1997, (800) 486-2665, ISBN 0-88427-153-6.
   
5. Necessary But Not Sufficient, Eliyahu M. Goldratt, Eli Schragenheim and Carol A. Ptak, North River Press 2000, (800) 486-2665, ISBN 0-88427-170-6
6. The Choice, Eliyahu M. Goldratt, North River Press 2008, (800) 486-2665 (In publication Sep 08)

   Recommended Texts (every Jonah should work on acquiring this library over time)  

7. TOC INSIGHTS, this series of four presentations in Operations, Project Management, Distribution and Measurements is a very effective way to brush up on TOC tools and to teach TOC principles quickly to others. It is highly recommended as one of the tool a TOC experts have in their tool box, http://toc-goldratt.com/index1.php.
   
8. The Goal: A Process of Ongoing Improvement, 2nd Revised Edition, Eliyahu M. Goldratt, North River Press 1992, (800) 486-2665, ISBN 088427-061-0.
   
9. Thinking for a Change, Lisa J. Scheinkopf, St. Lucie Press, 1999, ISBN 1-57444-101-9.
   
10. Critical Chain Project Management, Lawrence P. Leach. Artech House Professional Development Library, ISBN 1-58053-074-5, 2000.
    
11. Manufacturing at Warp Speed: Optimizing Supply Chain Financial Performance, Eli Schragenheim and H. William Dettmer, St. Lucie Press, 2001, ISBN 1-57444-293-7.
    
12. The Race, Eliyahu M. Goldratt and Robert E. Fox, North River Press 1997, (800) 486-2665, ISBN 088427-062-9.
    
13. Production the TOC Way, Instructor Manual with Key and Work Book with Software, Eliyahu M. Goldratt, Avraham Y. Goldratt Institute, 1995, (800) 394-4525.
    
14. Shifting Information Out of the Data Ocean: The Haystack Syndrome, Eliyahu M. Goldratt, North River Press 1990, (800) 486-2665, ISBN 088427-089-0.
    
15. Regaining Competitiveness: Putting The Goal to Work, 2nd Edition, Mokshagundam L. Srikanth and Harold E. Cavallaro, Jr., Spectrum Publishing, (800) 452-8998, ISBN 088427-106-4.
    
16. Project Management in the Fast Lane: Applying the Theory of Constraints, Robert C. Newbold, St. Lucie Press 1998, ISBN 1-57444-195-7.
    
17. Breaking the Constraints to World Class Performance, Bill Dettmer, ASQ Quality Press 1998, (800) 248-1946, ISBN 0-87389-437-5.  Other Suggested Text (to add to your Gift List) 
18. Enterprise focused management: Changing the face of project management, Ted Hutchins, Telford Publishing, 1 Heron Quay, London E14 4JD, 2001, ISBN0-7277-2979-9.
    
19. Essays on the Theory of Constraints, Eliyahu M. Goldratt, North River Press, 1998, ISBN 0-88422-159-5.
    
20. ERP Tool, Techniques, and Applications for Integrating the Supply Chain, Carol A. Ptak, Eli Schragenheim, St. Lucie Press. 1999, ISBN 1-574444-2708.
    
21. Deming and Goldratt, the Theory of Constraints and the System of Profound Knowledge, Domenico Lepore and Oded Cohen, North River Press 1999, (800) 486-2665. ISBN 0-88427-163-3.
    
22. The Definitive Guide to Project Management: The Fast Track to Getting the Job Done on Time and on Budget, Sabastian Knokes, Financial Times Prentice Hall, 2003, ISBN-10: 0273663976 (http://www.amazon.co.uk/Definitive-Guide-Project-Management-Getting/dp/0273663976).
    
23. Managing Operations: A Focus on Excellence, James F. Cox, John H. Blackstone, John G. Schleier, North River Press, 2003, ISBN: 0-88427-172-2
    
24. Management Dilemmas: The Theory of Constraints Approach to Problem Identification and Solutions, Eli Schragenheim, St. Lucie Press, 1998, ISBN 1-57444-222-8.
    
25. Management Accountants' Handbook, 4th Edition Supplement, (See the chapter on Theory of Constraints), Chapter Author: John A. Caspari, Book Authors Keller, Bulloch, and Shutis, Wiley 1993.
    
26. Relevance Lost: The Rise and Fall of Management Accounting, Robert S. Kaplan and H. Thomas Johnson, Harvard Business Press, Boston 1987.
    
27. Relevance Regained: From Top-Down Control to Bottom-Up Empowerment, H. Thomas Johnson, The Free Press, New York 1992.
    
28. The Theory of Constraints and its Implications for Management Accounting, Eric Noreen, Debra Smith and James T. Mackey, North River Press, 1995, ISBN 0-88427-116-1.
    
29. Re-Engineering the Manufacturing System: Applying the Theory of Constraints, Robert E. Stein, Marcel Dekker, Inc. New York 1996, ISBN 0-8247-9747-7.
    
30. Re-Engineering Performance Measurement, Archie Lochamy and James Cox, Irwin/APICS Book Press, ISBN 1-55623-916-5.
    
31. Introduction to the Theory of Constraints (TOC) Management System, Thomas B. McMullen, St. Lucie Press 1998, ISBN 1-57444-066-7.
    
32. The Constraints Management Handbook, James F. Cox III and Michael S. Spencer, St. Lucie Press 1998, ISBN 1-57444-060-8.
    
33. Synchronous Management (Volume I and II), Mokshagundam L. Srikanth and M. Michael Umble, Spectrum Publishing 1997 (203) 453-2233, ISBN 0-943953-06-5.
    
34. The World of the Theory of Constraints: A Review of the International Literature, Victoria J. Mabin and Steven J. Balderstone, St. Lucie Press, 1999, ISBN 1-57444-276-7.
    
35. Measurement Nightmare: How the Theory of Constraints Can Resolve Conflicting Strategies, Policies, and Measures, Debra West Smith, St. Lucie Press, 1999, ISBN 1-5744-246-5.
    
36. The Theory of Constraints: A Self Learning Program, Eliyahu M. Goldratt, Goldratt's Marketing Group, (888) 301-6141, Compressed Video on CD-ROMs (1- Operations, 2-Finance and Measurements, 3-Project Management and Engineering, 4-Distribution and Supply Chain, 5-Marketing, 6-Sales and Buy-In, 7-Managing People, 8-Strategy and Tactics). 

This is a graduate course. It follows graduate course standards. Each individual student progresses by personal academic effort. Students enroll in this course because they want to learn (not be fed). The amount of knowledge a student gains depends much upon hes own effort, time and energy. Each class period, material is presented to assist the student work and to give direction and focus.

There will be many brilliant students enrolled in class. It is in the student's best interest to interact with each other through discussion groups, peer scrutiny and private discussion. Course material and tools are available to facilitate this discussion. While, there will be no formal grading or measurement of individual interaction, 5% of the course evaluation will be based on participation on class discussion pages.

Students will participate by sharing their TOC work and posting it for class members to review (sensitive private work exempted). Each student will give a class presentation (live or by recorded VHS tape that will be played during class time or available in the class archives).

Thinking Process Project: Each student will complete a full Thinking Process analysis of undesirable effects from within their own span of responsibility. While this will probably be a small project (not a 'system wide analysis'), it will allow the student to quickly relearn, refresh, renew, remember their Thinking Process Tools and to learn the newest techniques. And, it gives the students opportunity for a clear implementation success in an area they can control. Students will post their analysis for peer review.

Categories of Legitimate Reservation: Most people espousing TOC knowledge suffer from ineffective application of the Categories of Legitimate Reservation. As a primer, each student will create a set of teaching examples for each of the categories: Clarity, Entity Existence, Causality Existence, Cause Insufficiency, Additional Cause, Predicted Effect, Cause Reversal and Tautology. Their work will be posted for other students to review.

Physical Processes: Students will be introduced to the Simplified Drum-Buffer Rope as outlined in Manufacturing at Warp Speed. And, they w ill learn the advanced features of the windows based GSIM Production simulator. The main emphasis will be upon buffer management techniques. Students will submit their results of an A-plant, V-plant and T-plant simulation.

Critical Chain: Students will review the basics of Critical Chain Project Management and discuss the best methods of scheduling multi-projects. They also have a chance to review student Critical Chain software. Students will schedule assigned homework projects.

Replenishment: Nearly 70% of all TOC implementations require the Replenishment Solutions to make things work well. We will discuss Replenishment as it pertains to the internal and external supplier-customer relationship.

Supply Chain Management: The fundamental principles of TOC Supply Chain Management will be introduced. Students will review recent three supply chain publications of their choosing and compare and contrast the suggested supply chain methods with the TOC approach. Students will submit a three-to-five page paper report.

Strategy-Tactic Tree: One of the most powerful TOC tools is the Strategy - Tactic Tree that allows a complete plan, both necessary and sufficient, to achieve lofty goals. Students may choose to prepare a Strategy -Tactic Tree as their class project.

Class Project and Presentation: Each student will write a five to eight page class paper and make a fifteen-minute class presentation. The paper and presentation will be on anyone of the following topics:

• A Review of an approved TOC book (from the Recommended Texts or Other Suggested Texts),
• A Report of an implementation (either their own or another case provided elsewhere),
• A Report of a significant planned implementation, or
• A Proposed new TOC technique.
• A Strategy Tactic Tree in an area of interest to the student

The topic will be approved with the instructor in advance. When possible and appropriate, the presentation will be made during class time. In most cases, there will not be time or ability for the student to deliver the presentation at a connected video studio. In these cases, the student will submit a VHS video tape recording which will be video archived on the class website. (International students may submit in PAL format and conversion will be performed by WSU.) Preparing YOUR Class Presentation

Thinking Process Analysis:	40%
Categories of Legitimate Reservation Examples:	5%
Drum Buffer Rope Simulation:	10%
Critical Chain Assignments:	10%
Supply Chain Paper:	10%
Written Class Paper:	10%
Class Presentation:	10%
Class Participation:	5%

The last day for student submitted materials to earn Summer 2002 Grade is July 31, 2002. Those who have finished their Thinking Process Analysis and other assignments due by class 9 but have not completed all other requirements may request an "I"-Incomplete grade. Those who receive an "I" should complete all requirements by December 2002 to receive a letter grade for this class.

This course is taught over the Internet using WebCT. You will need an appropriate Web Browser. You can check your browser at: Browser Tune-up. You should have a high-speed connection to the Internet to meet the minimum requirements.

You should have normal office software for this course. The preferred method of presenting graphical material is PowerPoint. While it is not the best, PowerPoint is common software that facilitates interchange and discussion. And, PowerPoint allows flexibility, creativity and originality. The best feature is "what you see is what prints" feature that works on all printers. If you choose to work in other media, post your material in PowerPoint.

Students will have access to a student version of ProChain software. This software is an add-on set of macros for Microsoft Project 98 or better. It is not necessary to use ProChain in this course. You may do the project management assignments by hand.

Students will use the new Windows based GSIM Production Simulator courtesy of Eli Shragenheim. This copy is only for use during the course and is not for further use or distribution. Those who choose to teach this material should obtain the complete Teacher Guide and Workbooks which contain the software and software key directly from the Goldratt Institute at very reasonable prices.

Students may also review the draft Thru-Put Project Management the TOC Way Simulator which was released "For review purposes only".

Other software will be available for review and use during the course only. Some of these programs run as independent programs and other are 'installed' under a Windows environment.

Treatment of Sensitive Material: The students of this class come from many companies. While you will be amazed how often different companies suffer from the same types of problems, some companies are reluctant to make public their concerns and breakthrough solutions. In addition, some students may be dealing with sensitive or propietary materials within their company. We have academic freedom within the classroom, we do not mean to embarass any student. And academic freedom does not mean we have a secure environment even with password protection. If you have sensitive material that should not be shared publicly, please do not discuss it in class or other class communications channels.

If you indicate you have sensitive material in your homework submissions, I will not share that information with any other people. Some firms desire a non-disclosure agreement in this cases. Such agreements are easily possible for sensitive work. However, most of the time, a simple "sensitve material" statement is all you need.

Incomplete Policy:Occationally, events beyond the students control prevent the student from completing all the required work for the Major Application Project. This project is represents the meat of the course and demonstrates the student has adequately learned the course material. If a student has completed at least through the FRT (representing more than 50% of the course material) but has not completed the full project by the time grades are do, the student will be awarded an 'I' - Incomplete grade. Students recieving an Incomplete should try to complete their project within the following semester.

Disability: Reasonable accommodations are available for students who have a documented disability. Please notify the course instructor during the first two weeks of class of any accommodations needed for the course. Late notification may cause the requested accommodations to be unavailable. All accommodations must be approved through the Associate Director of Student Services.

Plagerism: Cases of academic dishonesty shall be processed in accordance with the Academic Integrity Policy, as printed in the Student Handbook and the Faculty Manual and as available from the Office of Student Affairs.http://www.studentaffairs.wsu.edu/hb_standards.asp.

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Live Class Date	Discussion Topic	Homework Assignment
1. Aug 28	Course Introduction Three Cloud Approach Fast Current Reality Trees	Contact Information Thinking Process Project Assignment CLR Assignment Your Class Presentation Plan
2. Sep 4	Advanced Categories of Legitimate Reservation Fast Future Reality Trees The PreRequisite Tree for PERT The New Transition Tree	Student Presentation Topic and Date Due
3.Sep 11	Holistic TOC: The Basis for the Viable Vision	Analysis of Your Company-Looking for all elements of TOC Locally
4. Sep 18	Understanding the Types/Templates for Logistical Viable Vision Student Presentation-TP Implementation Report	.
5.Sep 25	Simplified Drum-Buffer-Rope for A, V and T plants. TOC Insights for Operations Student Presentation DBR Implementation Report	DBR- Simulation Assignment
6. Oct 2	TOC Replenishment-The Hidden Jewel TOC Insights for Distribution	Distribution Assignment
7. Oct 9	Critical Chain Project Management TOC Insights for Project Management Critical Chain Implementation Report	Critical Chain Assignment
8. Oct 16	TOC Finance and Measurements: The consolidated Approacth TOC Insights for Finance and Measures Strategy and Tactic Trees	TOC Measurements Assignment
9.Oct 23	Creating Your Own Viable Vision The 'How to' Sample Viable Visions	Thinking Process Project Due
10. Oct 30	Discussion of The Choice Student Cases Student Presentation	.
11. Nov 6	Discussion of The Choice Student Cases Student Presentation	.
12. Nov 13	Prepareation for the TOC-ICO Certification Fundamentals Exam Overview	.
13. Nov 20	Preparing for TOC Expert Certification Advanced Exam Overviews Student Presentation	.
Nov 27	Thanksgiving Week Break - No Class	Happy Thanksgiving Day!
14. Dec 4	Student Presentations	Last date for Written Class Project Paper
15. Dec 11	Student Presentations	Last Date for Class Presentation

 The last day for student submitted materials to earn a Fall 2008 Grade is Dec 18, 2008. Those who have finished their Thinking Process Analysis and other assignments due by class 9 but have not completed all other requirements may request an "I"-Incomplete grade. Those who receive an "I" should complete all requirements by May 2009 to receive a letter grade for this class.

 Copyright © 2008 Washington State University. All rights reserved.

 Page created by James R. Holt Comments and questions: webmaster@vancouver.wsu.edu

 URL: http://www.vancouver.wsu.edu/fac/holt/em534/EM534Syl.htm