A Critical Review of the Book It's Not Luck by Em Goldratt Essay

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A Critical Review of the Book It's Not Luck by Em Goldratt
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
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According to Goldratt the process starts by listing all the current undesirable effects that exists. Taylor (2003) states that the current reality tree "does not focus on the severity or the ranking but on the effect-cause-effect relationships of the list of UDE's". The next step is to find a cause and affect relationship between at least 2 of the undesirable effects that form part of the list. When the relationships are completely mapped, it is possible to identify the one core reason or problem that was under control of the facility.
It is clear from the current reality tree that the core problem reflected "managers are using local optima" Goldratt, (p.158). It is evident that managers are in a conflicting position that is preventing them from doing the things that is right for the business. In order to correct this, it is imperative to clarify what the right thing to do is and what prevent them to do the right thing. The answer to the ‘breakthrough solution" must be strived for. One of the conflicts that stood out in the examples was "consider the clients' perception of value" versus "consider the suppliers' perception of value". In order for managers to conclude good decisions they must "consider the need to get enough sales". Goldratt (p.160). This must be the mindset of managers not only on top levels, but on all levels. Furthermore, managers must "make decisions and act upon the clients perception of value" before they can

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