Eliminate Bottlenecks for Huge Productivity Gains
I've been reading a lot by Eli Goldratt on the Theory of Constraints recently. Eli thinks that any system, no matter how complex, is based on inherent simplicity. In fact, the larger and more complex a system is, that the fewer bottlenecks or pressure points the system has.
Eli says, forget TQM, ISO 9000, 6 Sigma and other quality endeavors. Your organization is only as good as it's weakest link. It doesn't make sense spending time and effort making your strong links stronger. Focus directly on the weakest link, bottleneck or constraint.
The process to capitalize on the inherent simplicity is straightforward:
1. Identify the system's constraint(s).
2. Decide how to exploit the system''s constraint(s).
3. Subordinate everything else to the above decision.
4. Elevate the system''s constraint(s).
5. If in the previous steps a constraint has been broken go back to step 1.
Originally, Eli applied his theory on manufacturers. I feel that this theory has a lot of application to law firms as well. More on that tomorrow...
If an organization "implements ISO 9001" to obtain a certificate then it will obtain less value than a company that uses the standard to improve the system it uses to run the business.
The INC article focused on the woes of the former organizations and did not report on the successes of the latter.
Any company can use ISO 9001 to develop its process-based management system so it could be used to drive its core process to add value faster while the system enables employees to prevent loss sooner. The core process, by the way, translates the needs of customers into cash in the bank (ready for the removal of constraints).
Our website has described how our clients do this since 1997 and this is based on the hardcopy guidance we have published since 1987.
