The Theory of Constraint and The System of Profound Knowledge - Book Report/Review Example

The Theory of Constraint and The System of Profound Knowledge Domingo Lepore and Oded Cohen have within the domains of this book discussed the theories related with constraint and the system of profound knowledge which has been made understood by Deming and Goldratt. They have done their bit at making one and all comprehend the basic facts related with these theories which we will find out in the coming paragraphs. Deming in his book ‘The New Economics’ has stated that the present style of management is pretty much a modern invention, which has been representative enough of a prison that is created by the way in which people interact and communicate with each other. The already present form has comprised of a firm competition amongst people as well as teams, departments, divisions, students, schools and universities. Even though there have been some teachings on the part of the economists that competition can literally solve one’s problems, one would now understand that competition is some way or the other quite lethal. In fact, in all seriousness, a much better proposition would be to work together on everyone’s part in the form of a system. The answer to all the problems comes from cooperation and not at all from competition. There is a need for a complete revamp to the new style of management, which Deming has referred to as the ‘Profound Knowledge.’ This term has in its entirety included four parts, which are the appreciation for a system, knowledge about different variations as well as a hypothesis concerned with knowledge and last but not the least, the emphasis on psychology. The book ‘The New Economics’ has thus clearly illustrated just the right ingredients, which go a long way in explaining the problems related with the health department as well as the mannerisms that are involved with working as a co-operative unit and not at each other’s wit at all times. Co-operation and support for each other is the key to achieving success. The book ‘The Goal’ by Eliyahu Goldratt is one of the most read business books in the market today. It is an introduction to his ‘Theory of Constraints’ (TOC), but it is shown in a pretty different form than the traditional business book of present times. Most business books for that matter are either considerable and at the same time dry or are more attractive than anything else, but have less importance related to its meaning. "The Goal" is a novel, which discusses a plant manager who basically learns about the Theory of Constraints. The role of this book in the business world and that too having a clear relationship with healthcare department is all the more intriguing to understand for a commoner. This book has pointed out that cost efficiencies, bad decisions as well as a persistent tradition in the business world have literally outshone the goal, which is stated in this very book. The book explains the story of Alex Rogo who is playing the lead character in it whereby he has been given a duration of three months to prove himself and turn the plant on its head and take it towards the shores of success from the midst of the ocean of trouble. Alex Rogo requires the help of Jonah who is his old professor for getting him out of the quagmire. The book has further played with the reader’s mind whereby he is set on a journey through Alexs professional as well as his personal world. The book has rendered us into asking questions of the like that in the beginning seem quite inconsequential, but with the passage of time make way both in terms of understanding as well as changing the thought process of the reader which for that matter is changed to a particular extent. This book is about making effectual as well as informed decisions which is so very the need of the hour when we discuss the scenario of our healthcare department where people which include the employees, top management and the patients need to do what is best for the department and in this process exhibit to the best of their abilities and skills, thus making inroads for a successful business when we take into consideration the business which this healthcare department is undertaking. The decalogue is a step-by-step guide that basically aims at designing as well as implementing a management system which is inspired by the teachings of Dr. Deming and the Theory of Constraints (TOC). The decalogue’s goal and mission is the provision of a theoretical structure as well as a set of tools that allows organizations to manage organizations quite effectively and improve the continuous improvement as concerns to attitude within the people and last but not the least expand and build focused business strategies that are long-term and knowledge-based in their entirety. The healthcare department must take notice of the decalogue whereby it can easily understand its functioning in the wake of a proper improvement program which is not only continuous but also of a kind that has a mechanism of self-appraisal for both its top management as well as the middle and lower staff. The steps of the decalogue basically come into birth from a primary concept which has the role of managing things that should be able to foresee and envisage the result of actions that are taken on the system or for that matter in the organization. The decalogue states that prediction is pretty much possible only when a system is in a situation of statistical control. The decalogue has further elaborated that achieving the same nearly improves the potentials of getting maximum performance from a company’s system and hence the performance of any stable system is quite limited to a minimal amount of factors, which in most cases is only one thus asking all and sundry to call it as the constraints of the limiting factors. Indeed, managing a steady system has efficiently passed through the effectual management related with its restraints and due share of problems. What is more important are the constraints which are not only internal to the system but also at times, quite affecting on the performance that is the basic incapability of how to put up for sale what one company or for that matter a person can individually produce and offer to the people or the market. For that reason, the steps of the decalogue are the following: 1. Establishing the goal of the system, the units of measurement and the operating measurements: In order to define the goal of the system, one must understand the definition of a system.  A system, as defined in Deming and Goldratt, is a network of interdependent components, which work together to achieve the goal of the system. It is essential that the manager recognizes and manages the interdependencies among components of a system.  2. Seeing the system: Understanding the system requires knowledge of how the elements in the system interact. The organizational structure and process thus need to be investigated upon. Flowcharts help identify the ‘Key Quality Characteristics’ which account for the data required for monitoring the performance and stability of the system. It is also pertinent to see the system by every person that has a direct or indirect relation with the same so that a level of awareness is increased as well as understanding of the problems which could come ahead. 3. Making the system stable: The system should be pretty sound at its foundation so that it does not falter at the last hurdle both for the people who are in more ways than one related or interacting with it. This can either be directly or in an indirect manner as the system could be different for varying amount of people and that too with the passage of time and budget constraints that are so very much on the rise every now and then for the companies. 4. Identifying the constraint and carry out the Five Focusing Steps: This is a very vital step as it literally gets hold of the problems that could be faced in the wake of some errors or hindrances that can arise at any moment of time, which for that matter is uncalled for, at all odd times. 5. Implementing buffer management: A management must be in place to take over when there is a temporary halt to the proceedings of the business as the company just cannot end without any valid reason. It has to have a mechanism, which can counter any problem that might arise at any non-fixed period of time. 6. Reducing the variability of the constraint and the main processes: The sixth sub heading aims at understanding the reasons behind the actual constraints and then goes about at hunting those very problems. The best a company can do at this stage is to reduce the occurrence of the problem that arises every now and then and creates obstructions and impediments for everyone concerned. 7. Creating a suitable management structure: There, as discussed earlier, should be a top management within the healthcare department or for that matter any business corporate, which is run by the same. This top management has a hierarchy that leads towards the bottom, which is indeed the lower management, which includes the staff and the ones who support the rest of the management. 8. Eliminating the external constraint: selling the excess capacity: Eighth sub heading is also very significant as the need should always be there to literally reduce or for that matter eliminate the external constraints that keep arising every now and then and creates problems for all concerned. 9. Bringing the constraint inside the organization when possible: External constraints should be eliminated while there is always a chance of internal problems that can arise due to conflicts between the top hierarchies or between the top and middle and lower managements. These are internal company’s affairs and must be dealt within the four walls of the premises. 10. Setting up a continuous learning program: The last process is to completely synergize so that people keep working towards the common goal of attaining successes for the company as well as for themselves. This not only puts the stakeholders at bay whilst keeping them happy but also the public’s trust is easily integrated into the company’s dealings and the overall system. All said and done, these theories give a fair understanding of what the reader would like to comprehend and Domingo Lepore and Oded Cohen have played their part in a diligent manner. BIBLIOGRAPHY Lepore, C. & Cohen, O. Deming and Goldratt: The Theory of Constraints and the System of Profound Knowledge, North River Press, Great Barrington, MA, 1999. Word Count: 1,759 Read More