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Necessary but Not Sufficient: A Theory of Constraints Business Novel

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After reading the newspapers and following the sharp oscillations of the stock market, it becomes apparent that hi-tech companies are of a different breed. Never before have the chances of making a fortune been so realistic and never before have large companies been so fragile. What is really going on inside these hi-tech companies? What types of pressures and challenges are they facing? And how do they cope?

Computer software providers, especially the ones that specialize in handling the data needs of organizations, are prime examples of these volatile companies. In the nineties we witnessed their growth from small businesses into multi-billion dollar giants. No wonder investors were attracted.

In 1998 it was easy for such companies to raise as much money as they wanted. But now, investment funds have dried up. Why? And more importantly, is there a way to reverse the trend? This book gives the answers.

242 pages, Kindle Edition

First published January 1, 2000

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958 people want to read

About the author

Eliyahu M. Goldratt

56 books694 followers
Eliyahu Moshe Goldratt (Hebrew: אליהו משה גולדרט) was an educator, author, physicist, philosopher and business leader, but first and foremost, he was a thinker who provoked others to think. Often characterized as unconventional, stimulating, and “a slayer of sacred cows,” he urged his audience to examine and reassess their business practices with a fresh, new vision.

Dr. Goldratt is best known as the father of the Theory of Constraints (TOC), a process of ongoing improvement that identifies and leverages a system’s constraints in order to achieve the system’s goals. He introduced TOC’s underlying concepts in his business novel, The Goal: A Process of Ongoing Improvement, which has been recognized as one of the best-selling business books of all time. First published in 1984, The Goal has been updated three times and sold more than 7 million copies worldwide. It has been translated into 35 languages.

Heralded as a “guru to industry” by Fortune magazine and “a genius” by Business Week, Dr. Goldratt continued to advance the TOC body of knowledge throughout his life, building on the Five Focusing Steps (the process of ongoing improvement, known as POOGI) with TOC-derived tools such as Drum-Buffer-Rope, Critical Chain Project Management (CCPM) and the Thinking Processes. He authored ten other TOC-related books, including four business novels: It’s Not Luck (the sequel to The Goal), Critical Chain, Necessary but Not Sufficient and Isn’t It Obvious? His last book, The Choice, was co-authored by his daughter Efrat Ashlang-Goldratt.

Born in Israel on March 31, 1947, Dr. Goldratt earned a Bachelor of Science degree from Tel Aviv University and a Master of Science and Doctor of Philosophy from Bar-Ilan University. He is the founder of TOC for Education, a nonprofit organization dedicated to bringing TOC Thinking and TOC tools to teachers and their students, and Goldratt Consulting. In addition to his pioneering work in business management and education, Dr. Goldratt holds patents in a number of areas ranging from medical devices to drip irrigation to temperature sensors. He died on June 11, 2011, at the age of 64.

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Displaying 1 - 30 of 35 reviews
Profile Image for Rob.
77 reviews8 followers
February 28, 2018
An excellent storyline and progressive learning of the implementation and subsequent TOC models to incorporate for maximizing the Throughput improvement.
My thoughts on the most helpful reading order:
The Goal
It's Not Luck
Isn't It Obvious
Necessary But Not Sufficient
Critical Chain
Profile Image for Leif Almberg.
9 reviews
February 27, 2021
Goldratt delivers as always!

Amazing as always from Goldratt! A great follow up from the Goal, isn’t it obvious and It’s Not Luck.
Even though it is a bit old, still a lot to learn.
294 reviews11 followers
April 12, 2020
BGSoft, a software company, has been having stunning growth for the last few quarters. But this is nothing special - this is the kind of growth that everyone expects from their industry. The leadership team of BGSoft feels they've hit a wall and captured all the market share they can. To make matters worse, one of their largest clients and most touted success stories can't see any benefits to their software. BGSoft's leadership uses the principles of TOC to get out of this dilemma. At least I assume they do - it's not explained clearly how they apply it.

This one spoke a lot about the benefits of TOC without actually deepdiving into what they are.

Also, there were too many characters and not enough to distinguish each one from the other. Add to this their two dimensional nature and the frequent jumping from one POV to another, the book became tiresome. To make matters worse, the entire work is written in present tense.

I'm reaching a saturation point with Goldratt's novels. Will read something else and come back to Goldratt.
Profile Image for Jack Vinson.
935 reviews47 followers
February 27, 2019
August 2017:
https://www.jackvinson.com/blog/2017/...

May 2008: https://www.jackvinson.com/blog/2008/...

December 2000:
This is a "TOC Business Novel," which means that it tells a story in order to describe the ideas of Theory of Constraints. In this case, the story centers around an ERP company, but that is not the focus of the thoughts. The focus is how TOC can bring benefit in any organization that has a workflow: production, distribution, engineering, software design, etc. The very interesting thing was that the book gave nice examples of how improving the capacity (via TOC) of one work process was not necessarily beneficial to the whole entity. For example, a great improvement in production capacity could have disastrous effects on a distribution system that operates by the old rules that expect low capacity and slow turnover in production. This may be obvious to say, but in an organization with thousands of people and a well-established business practice, this becomes quite difficult. 

The central point of the book is that technology alone cannot "diminish limitations." The authors hammer home the idea that any work process has been developed to account for the capacity of a system. If the capacity of the system changes, but the work process remains the same, then the overall capacity/efficiency will not change by much. Technology is a necessary part of the equation; it gives companies the ability to increase capacity. But it is not sufficient by itself to have the technology. One must change the rules to take advantage of this new capability. 

This book attempts to apply TOC to a holonomy of work processes. TOC can improve production, but then that affects distribution. And what about up-front design? TOC can help there too (this is vaguely where PCRP fits), but sales, production and distribution must be able to handle this. And then there is the ever-popular business-to-business view of ERP that wraps up the book: if only one member of the supply chain applies TOC, the entire supply chain is not affected unless it changes its rules. This is what Dell, Wal-Mart and many others have done: the supply chain knows when a sale is made and reacts to fill stock to appropriate levels. No one in the supply chain gets paid until an actual sale is made. This is a big change from getting paid when one point of the supply chain hands off the product to the next. 

The book doesn't specifically prescribe a mechanism for implementing these ideas. Instead, the authors tell the story of how businesses might go about doing this. The story has TOC consultants, software vendors, and the manufacturers working together in order to implement the TOC philosophy along with the software that will enable the philosophy. 
Profile Image for Alistair MacDonald.
5 reviews3 followers
June 1, 2020
While this book was not as gripping as The Goal, it faithfully covers others aspects of The Theory of Constraints that I had pondered after reading other Goldratt books. It was nice to read a TOC novel set in the world of software development, as this is how I am employed. The stance of the book on the value of software is that "software is necessary but not sufficient", Ie: software is a necessary evil. I think this is an accurate view of software: it's valueless without the ability to reprogram humans to use it correctly. The book applies this concept to change in general; Ie: providing a systems approach to fixing a human problem is only half of the solution, you also have to change the mindset of the users so they are able to buy in to the paradigm shift that the system enforces. There is a hidden world of beauty among all of this, which is that the original meaning of the word "software", was "people to run the hardware" (prior to hardware having the ability to operate on procedural instructions from memory). So, "we need the software", but "we can't expect results without also changing the users". As usual the Goldratt books are as fascinating, energizing and inspire the application of critical systems thinking to solve the problems inherent in the whole network, not just the silos that form around individual concerns.
Profile Image for Kaustubh.
32 reviews2 followers
February 12, 2019
The book is an amazing insight into what wonders TOC can potentially do mainly to the bottom line of an organization. It purposefully advocates TOC.

The tagline says that it is a TOC Business novel for IT, but it mostly discusses a large case at Pierco which is not an IT but a production company. It then weaves these problems into the ERP company's working (which is an IT company). Although significant efforts have been taken to write this as a novel, it is not flawless. At times the conversations get boring and too theoretical.

However, this book gives you several "wow moments" and that's what makes it enjoyable. Must read for everyone who is somewhat related to supply chains, or TOC or rather any business arm of an organization.
Profile Image for Kaido.
294 reviews
August 8, 2016
I started to read this book with create enthusiasm. The described problem at the beginning was the same as any programmer has had in some period. Systems got big and new code was even more and more difficult to implement. I was hoping to get some good answer, what to do in such situations but ... unfortunately, this problem was not solved. They organised a bit their work and implemented some new theories but didn't get the answer, how to breake down and simplify mammoth IT systems.
Profile Image for Moronke Dafiaga.
7 reviews
February 7, 2017
I think this book is an eye opener. It doesn't just talk about TOC(Theory of Constraint) But it also sheds more light on the bottom line value of a product i.e how does it affect financials at the end of the day.
Profile Image for Fabiola Valenzuela.
39 reviews2 followers
March 18, 2025
En mi opinión el libro toma los siguientes puntos más importantes:
Una gran limitante en cualquier organización es que un gerente tome decisiones sin tener datos pertinentes-
Se basa en la idea de que, en cualquier proceso, siempre hay un "cuello de botella" o restricción que limita la capacidad de todo el sistema paso a paso:

Identificar la restricción: El primer paso es encontrar cuál es el "cuello de botella" o la limitación más importante en el sistema. Esto podría ser una máquina, una persona, un proceso, o incluso una política dentro de la organización.

Explotar la restricción: Una vez que identificas cuál es la restricción, debes hacer todo lo posible para aprovecharla al máximo. Por ejemplo, si el cuello de botella es una máquina, asegúrate de que funcione sin interrupciones y con la máxima eficiencia posible.

Subordinar todo lo demás: Esto significa ajustar el resto de los procesos para que trabajen en función de la restricción, evitando sobrecargarla. Todo el sistema debe alinearse para que la restricción no se vea afectada negativamente por los demás procesos.

Elevar la restricción: Si después de explotar y subordinar todo, la restricción sigue limitando el rendimiento, entonces debes buscar formas de mejorarla. Esto podría implicar invertir en nuevas tecnologías, contratar más personal o mejorar el proceso.

Volver a empezar: Una vez que hayas solucionado una restricción, es probable que otra restricción aparezca en algún otro lugar del proceso. Entonces, el ciclo se repite, siempre buscando la siguiente limitación a mejorar.

Ejemplo de la teoria de restricciones:
Claro, te voy a dar un ejemplo práctico de la **Teoría de Restricciones** aplicado a una fábrica que produce camisetas:

### El escenario:
Imagina que una fábrica produce camisetas, y el proceso de producción consta de varias etapas:
1. **Diseño**: Se diseñan las camisetas.
2. **Corte**: Se cortan las telas según el diseño.
3. **Costura**: Se cosen las piezas cortadas.
4. **Empaque**: Se empaquetan las camisetas terminadas.

### Paso 1: **Identificar la restricción**
Al observar el proceso, el gerente se da cuenta de que la etapa de **costura** es la que más tiempo consume y tiene menos máquinas disponibles (sólo hay dos máquinas de coser, pero la demanda es alta). Las otras etapas (diseño, corte y empaque) tienen más capacidad y no son tan lentas.

**La restricción es la etapa de costura.**

### Paso 2: **Explotar la restricción**
Ahora que se sabe que la costura es la restricción, se toma acción para aprovecharla al máximo. Algunas medidas que podrían tomarse son:
- Asegurarse de que las máquinas de coser estén en funcionamiento todo el tiempo posible, sin interrupciones.
- Capacitar a los empleados para que trabajen más rápido o de manera más eficiente.
- Organizar el trabajo de manera que las telas estén siempre listas para ser cosidas sin retrasos.

### Paso 3: **Subordinar todo lo demás**
Las otras etapas (diseño, corte, y empaque) deben ajustarse para que no sobrecarguen la etapa de costura. Por ejemplo:
- Si se producen demasiadas piezas en la etapa de corte, se puede generar un exceso de telas que no pueden ser cosidas de inmediato, lo que generaría retrasos. Por lo tanto, se controla la producción de cortes para que coincidan con la capacidad de costura.
- El diseño y el empaque pueden adaptarse para no hacer más camisetas de las que la etapa de costura puede manejar en un día.

### Paso 4: **Elevar la restricción**
Después de que la etapa de costura ha sido explotada al máximo, si la producción sigue sin ser suficiente, se deben buscar formas de elevar la restricción. Esto puede implicar:
- Comprar más máquinas de coser.
- Contratar más trabajadores o capacitar mejor a los existentes.
- Automatizar parte del proceso de costura.

### Paso 5: **Volver a empezar**
Una vez que se mejora la capacidad de costura y la producción aumenta, podría aparecer una nueva restricción en otro paso, como el empaque, que no puede seguir el ritmo de las nuevas camisetas cosidas. Entonces, el proceso se repite, buscando y mejorando la nueva restricción.
En este ejemplo, la **Teoría de Restricciones** ayudó a identificar que la **etapa de costura** era la limitante del sistema. Luego se explotó al máximo esa etapa, se ajustaron las demás a su capacidad y, cuando fue necesario, se invirtió en recursos adicionales para eliminar esa restricción y seguir mejorando la producción.

Goldratt expone la idea de que muchas organizaciones se enfocan demasiado en hacer las cosas "necesarias" (lo que se requiere para alcanzar el éxito), pero olvidan que "lo suficiente" (es decir, un conjunto de condiciones adicionales o innovaciones) es lo que realmente hace la diferencia en la mejora y el éxito sostenido de la empresa.

El libro se centra en cómo las organizaciones deben identificar lo que realmente limita su desempeño, y luego mejorar esos aspectos de manera efectiva, sin caer en la trampa de confiar solamente en soluciones tradicionales o parciales.
Goldratt expone la idea de que muchas organizaciones se enfocan demasiado en hacer las cosas "necesarias" (lo que se requiere para alcanzar el éxito), pero olvidan que "lo suficiente" (es decir, un conjunto de condiciones adicionales o innovaciones) es lo que realmente hace la diferencia en la mejora y el éxito sostenido de la empresa.

El libro se centra en cómo las organizaciones deben identificar lo que realmente limita su desempeño, y luego mejorar esos aspectos de manera efectiva, sin caer en la trampa de confiar solamente en soluciones tradicionales o parciales.
Lo necesario es más que suficiente" enfatiza que muchas empresas se quedan atascadas en hacer lo "necesario" para mantenerse operativas, pero si no buscan también lo "suficiente" — soluciones más innovadoras, adaptabilidad y mejora continua — no podrán superar los desafíos del mercado y alcanzar el verdadero éxito a largo plazo. El libro propone un enfoque más amplio y estratégico, basado en la identificación de las restricciones y la mejora constante.
Profile Image for Jeff Kinsey.
Author 1 book36 followers
March 10, 2023
Ever heard of an ERP?

Enterprise Resource Planning. Doesn’t really sound like the thing that fun is made of, does it?

If you’ve never been down this path, and it is most prevalent in the manufacturing space, then you don’t really know how bad or how much work it is to implement ERP.

But your first step should be consuming this book by three masters at production and manufacturing, as it is co-written by Goldratt, Schragenheim, and Ptak. Written as a business novel, yet based on real case studies. In fact, one of the cool things is the dates in the book. Goldratt told me if you look at the dates in the book they align with real press coverage and discussions about the businesses that build and sell ERP solutions. How cool is that?!

If you deal with production and/or manufacturing in your place of work this is a must read book. #honest
Profile Image for Geir Amdal.
1 review2 followers
July 9, 2024
Written as a “business novel” like its predecessors, this book is an easy and fast read, relatively entertaining and presents very little friction for those who have read “The Goal”, “Critical Chain” and other Goldratt novels.

Good for perspective and making connections; does little to enable or disseminate any concrete practice. It shows the shift required, and the nature of the continued learning process, but does little to put practical tools or approaches in the reader’s hands.
Given the format, I believe that was never the intention.
42 reviews2 followers
December 24, 2020
Being an ERP Consultant, I read this book with interest. I was able to identify with the challenges discussed. I learned a lot, especially about how ERP can add value to a customer. I also learned about some of the matrices that I can use to evaluate the RoI from an ERP Investment.

You can check out my review of the book in my blog.

https://erp-consultancy.blogspot.com/...
Profile Image for Tamp_kh.
811 reviews4 followers
April 5, 2020
Возможно, это была попытка взглянуть на разработанную теорию со стороны. Причём с той стороны, которая и должна быть независимой и использовать "ТоС" извне - интеграторов и консультантов. БОльший взгляд на элемент рынка, чем в предыдущих книгах, правда, нельзя сказать, что это как-то серьёзно повлияло на суть.
This entire review has been hidden because of spoilers.
Profile Image for Toshihiro.
111 reviews
October 16, 2017
Here another management-fantasy!

Just fun to read. A success story, or fantasy, with T.O.C. The story ends with currently very common solution. Was it there at the time the book was written?
3 reviews
April 26, 2019
A good read for folks in Manufacturing & operations

Well written "business novel" that touches upon all the practical and real problems and how TOC can help overcome them. Technology is necessary but not sufficient.
Profile Image for Ciprian Dobre-Trifan.
Author 2 books8 followers
December 23, 2019
Goldratt never disappoints! Even when it comes to Software.

Value based fees, in the form of customer value driven software and SaaS, software as a service, are elegantly and undeniably exposed as common sense in the traditional stunning style of dr Goldratt.
2 reviews
October 24, 2020
This is a master piece!! Especially when you are introducing an innovative product. I found it useful in my company and our products. Currently reading the goal by Eliyahu too. You should read this book
5 reviews
June 19, 2021
Good book, kindle riddled with typos

The book is good but the kindle version has a lot of typos which are a bit distracting. Also preferred the goal but the style of this is still good.
Profile Image for Joe.
211 reviews25 followers
April 19, 2018
Very engaging narrative including a few useful new learnings about TOC. A must read for the true believers. For all others, focus on The Goal and Critical Chain.
Profile Image for Tony Grimm.
16 reviews1 follower
December 24, 2018
Very good. I loved reading how TOC can relate in the software industry.
Profile Image for AISilverB.
21 reviews
October 28, 2019
It was a random read but it has delivered great value to my outlook on problem solving!
Profile Image for Albert.
36 reviews
May 25, 2020
A book that features TOC, but isn't really about it, like The Goal
Profile Image for Darius Daruvalla-riccio.
187 reviews6 followers
April 22, 2020
Another great book by Dr Goldratt.
This story follows the perspective of a software provider that is reaching market saturation. As the company learns how to improve their offering, the book teaches the lessons of:

-DBR production through IT systems
-TOC Replenishment and supply chain management
-delivering bottom line value as a sales strategy rather than deliverig technology for the sake of technology
Profile Image for Salil Sathe.
38 reviews
February 27, 2016
A beautiful book that tells a story of an ERP software company and the way it changes the business scenario with help of Theory Of Constraints. I had heard the three rules of Dr Eliyahu Goldratt, about being paranoid and bring hysterical. This book tells us what is the real meaning of the phrase "being paranoid". With a good software, as a customer you can become equipped enough to get that cutting edge, but it is just a necessary condition. You can get the true benefit out of the software only when you change the underlying rules that were present before the software was installed. Just like the software removes the earlier limitation, the earlier rules that were required for the limitation need to be modified to get the real benefit out of the software. A thought provoking book, though not as beautiful as "The Goal" & "The Critical Chain".

Nevertheless, a beautiful read for "Theory of Constraint" fans...
Profile Image for Tiago.
Author 13 books1,552 followers
July 10, 2016
A few insights, but otherwise superfluous

I think the narrative format originally deployed in The Goal has been overextended here. Once you understand the heavyweight ideas of TOC, you're ready to accept new ideas in a more condensed format, such as in The Race. This book felt like a short commentary on some of the technological implications of TOC, embedded in a rather boring story short on details. I'm also afraid that technology has evolved much faster and farther in the years since publication, with far greater implications than anyone would have guessed. Technology may still be necessary but not sufficient, but increasingly it is changing the rules, not just operating within them.
Profile Image for Philip.
17 reviews
Want to read
December 13, 2008
I half read this about 5 years ago. Its a book I've been meaning to read again as I think I'd appreciate it more. Its a fiction novel dealing with business theory - so different from the usual "business manual" So entertaining as well as having a business message
Displaying 1 - 30 of 35 reviews

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