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AGI - Goldratt Institute

We put theory of constraints into practice...solving the toughest problems in leadership alignment, project management, supply chain, and production.


Securing the Future

Actions Produce Outcomes
A chain is no stronger than its weakest link!

What helps your company beat the competition?

    • Better shelf level (product) availability?
    • Faster, more reliable lead-times (time to market)?
    • Better on-time delivery?
    • Providing the above, while staying within budget?
    • Projects completed on-time, in-scope, and in-budget?
If you answered "yes" to any of the above, then the Jonah Program® for Operations might just be what you are looking for -- the leadership "know-how" to more effectively align all business functions to deliver and operations performance-based business strategy.

    Providing customers what they need, when they need it,
    while lowering the overall cost of delivery and improving ROI

Find out more...


Understanding THE GOAL: The best-seller by Eli Goldratt and Jeff Cox


Explore the method that Jonah, a college physics professor, was Socratically conveying to plant manager Alex Rogo to help him save his plant.

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AGI On-Demand


TOC for Inventory Management Overview
Improving availability, reducing out-of-stocks and increasing inventory turns with properly located and sized inventory buffers.

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Next Open Programs

Nov 3-7 - Advanced TOC for Operations in Milford, CT USA. Register.

Dec 8-12 - Jonah Program® for Operations in Milford, CT USA. Register.

2014 Open Schedule Available.

If you are interested in scheduling one of our programs as a dedicated class at your location, please contact us at 203.624.9026 or agi@goldratt.com.

"If we have a constraint in the system, wouldn't we want to get rid of it?"

Hanging Fire

by Jeff Cox, co-author of The Goal
with Dale Houle & Hugh Cole of AGI-Goldratt Institute

"Have you ever heard of TOC - the Theory of Constraints?"

"No, what's that?"

"It's a business management concept for controlling flow," Sarah said.

"Flow of what?"

"The flow of whatever the organization is supposed to create."

"You say 'constraints'? Is that what our problem is? Too many constraints?"

"No, a constraint in TOC thinking is not what it sounds like. A constraint -- in particular a system constraint, as it's called -- is a regulating device that governs the rate of results of the system. TOC holds that every business -- every organization -- should have a recognized system constraint in order to govern flow."

"I don't understand. If we have a constraint in the system," Rolly asked, "wouldn't we want to get rid of it?"

"You have constraints in your business no matter what. There are only so many hours in a day, only so many people, so much equipment -- and only so much money as operating capital. At the limits of those resources you have, for each one, a constraint. Nothing is unlimited."

"Got it."

"In most cases, though, the capacities of the resources are ample enough that the limits are never reached if the resources are managed well. And TOC posits that a primary tool for managing well is to have a system constraint."

"Why?"

"Think of it as a valve. Like a master valve. As something to regulate flow. It's not there because it's a problem; it's there for a purpose. And that purpose is to synchronize everything that's going on throughout the system so that there is smooth, fast flow."

-- from HANGING FIRE

Ordering HANGING FIRE

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