Eliyahu M. Golratt – Theory of Constraints [TOC] Leads to a Revolution in Manufacturing
I’m a big fan of Eliyahu M. Goldratt, especially his Theory of Constraints (TOC) and his work on bottleneck management. Goldratt revolutionized the manufacturing world with a critical insight into the overall operation of the plant floor. Before Goldratt, local efficiency was the key metric used to measure performance on the shop floor.
Imagine that a factory had 10 workstations, each with a specific job in the manufacturing process. At one time, management believed that if each machine was running close to 100 percent of the time then the factory would be as efficient as possible. However, Goldratt figured out that the factory as a whole could only run as fast as its slowest machine. By running machines at disparate production rates to full capacity, the manufacturer was, in fact, just creating work in process (WIP) and jamming up the factory shop floor.
Choosing a Risk Practitioner: It’s a Risky Business…
Risk assessment is becoming an industry standard. Unfortunately, at this point that is the only standard part of the process. Unlike, say, the field of medicine, you don’t need a license to be a risk practitioner in project management. However, there are a few certifications in the industry that, at the very least, will guarantee a baseline of knowledge and experience.
The Project Management Institute grants a credential called the Risk Management Professional (PMI-RMP). In order to qualify to sit for the exam, a professional must have completed at least 3,000 hours of risk practice. Then they must pass the exam, which is quite comprehensive, in order to get the credential.
In order to maintain the credential, the professional must participate in ongoing education.
AACE International offers a Decision Risk Management Professional designation, which is well regarded in the industry.
FIATECH 2013 Technology Conference & Showcase: The Visualization of Capital Planning
This conference was held by FIATECH, an innovation-driven nonprofit in the construction industry that promotes technologies that impact the industry. They are very well regarded around the world.
In the panel I spoke on, we focused on visualization in construction. I had the pleasure of leading a discussion on the visualization of capital planning.
The Visualization of Capital Planning
When I do public speaking engagements, I try to bring something new to the conversation. I like to challenge myself when I put together a talk to bring new knowledge or insights to the subject. One of the key insights on this topic is the difference between the graphical path method and the critical path method, including why the graphical path method allows portfolio planning in a way that the critical path method does not.