An extensive use of Goldratt's thinking process is applied in the various businesses as part of the problem solving. "It's not luck" emphasizes the importance of using the thinking processes in business and in your personal life. The thinking processes refer to a logical, graphical, general and practical method of problem solving methodology and basically comprised of 3 steps. These steps as described by Goldratt are:
1. What to change?
2. To what to change?
3. How to cause the change?
It is very clear that the problems experienced in the companies are not lone standing but in most of the cases they are dependent on each other and there are strong bonds or relationships with regards to the cause and effects between them. It is therefore important to form or establish a strong cause and affect between them.
It is important to identify the unresolved conflict that exists. The process can be illustrated through a conflict resolution diagram or evaporating cloud, Goldratt (1994). As a first step a "current reality tree" is used extensively to portray and depict the cause and effect that join all the problems proceeding in a specific situation. After this, one will realize that you don't have to deal with multiple problems because normally there are only one or two reasons or causes. The thinking processes give you a step by step procedure how to do this. This is where the undesirable effects (UDE's) come in.
This brings us to what to change. If the undesirable effects lead to the root cause, then the root cause must lead to the undesirable effects, therefore "brought on by the root cause itself", Taylor (2003). The resultant current reality tree brings us to the proces...
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...rop their inventory levels.
Throughout the text of "It's not luck" it is clearly evident the great and significant importance detailed and accurate information plays in making informative business decisions. The information positively contribute to clear and logical decision making as well as analysis which further assist in reaching the desired goal and targets. The book It's not luck" with its three company examples clearly illustrates that when a constraint is removed accomplishments move forward. Through this even the normally stretch targets can be met and achieved and goals will be realized.
Goldratt, E.M. (1994). It's Not Luck. North River Press Publishing Corporation, Great Barrington, MA.
Taylor, J. and Ortega, D. The Application of Goldratt's Thinking Processes to problem Solving. Allied Academic international Conference. Las Vegas. 2003
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