Dr Eliyahu Goldratt -
            
The Common Sense Man
Viable Vision Programme launched

“Where does a 300 kg gorrilla sleep?” A rather unusual question from a man whose services are expected to make a whooping difference to Tata Steel in the four years that follow. But his answer is based on something we often take for granted but infrequently excercise, and that is common sense. The answer, “the 300 kg gorrilla sleeps wherever it wants to!”

Mr. Muthuraman explains
what lies ahead

Dr Eliyahu M Goldratt, author of the bestseller “The Goal” and the “Theory of Constraints” has been described by Fortune magazine as a ‘Guru to Industry.’ One roaring session with him would make anyone second that. A Doctorate from the University of Tel Aviv, Dr Goldratt has been playing the role of an educator, author, scientist, philosopher and business leader, and has been instrumental in bringing about a global revolution in the manner in which enterprises should be managed - through sound logic and common sense. With a view to bringing about a revolutionary increase in output, Tata Steel has sought Dr Goldratt’s expertise. The Company appointed Goldratt Consulting Limited of UK to implement its ‘Viable Vision Programme’, which has been branded by Tata Steel as “ASPIRE Unlimited.” The programme was launched by Mr B Muthuraman, Managing Director, Tata Steel in the presence of Dr Goldratt and many senior officials of the Company, along with Union office bearers at the Tata Auditorium, Jamshedpur. The programme forms part of the Company’s continuous march towards excellence in all spheres of its business. Designed to run as an internal campaign, it is based on the principles of Dr Goldratt’s “Theory of Constraints” (TOC).

While speaking on the occasion, Mr Muthuraman went on to discuss what precipitated the launch of “ASPIRE Unlimited.” Questions such as “How can we improve our profits in a big way to meet aspirations?” acted as catalysts and initiated the Managing Director’s first meeting with Dr Goldratt. Though it was marked with a number of disagreements between the two, but Mr Muthuraman agrees that his search for excellence had taken him to Dr Goldratt; and after the meeting he realised that he returned extremely invigorated, with energy levels a lot higher than when he had started. Mr Muthuraman further added, that the launch of this programme will usher in a whole new chapter in history of the Company, also TOC would make Tata Steel the best recognised Steel Company in the world.

Dr. Goldratt shares a few "common sense" ideas

Hard sciences are based on predictability but Dr Goldratt applies the same principle while working in the material world, involving human beings. Human behaviour is as predictable if not more he believes as the sciences, so it only makes sense to use the same fundamentals while working within an organisation. He said “reality is phenomenally complex but there is something called inherent simplicity within it.” An intuitive feel for this inherent simplicity is what leads to discoveries. A Nobel Prize is, therefore, nothing else but as simple as making a person with little subject knowledge hold his head in regret and say ‘Why couldn’t I get it?’

Explaining the fundamentals of his theory, Dr Goldratt said that TOC looks at business problems from a system level, in contrast to some other methods that are focussed on specific processes. Focusing on Viable Vision implementations and by using the TOC, industrial organisations can achieve unprecedented improvements in their bottomline performances. Thus, there is a definite need to identify and capitalise on those few elements that govern an organisational system.

Tata Steel and the Goldratt team focus on change

There should be a constant desire to scrutinise situations and to know if the rate at which results are achieved is realistic or not. Having said this, Dr Goldratt believes the real challenge is not the four years that he would be working with the Company but the years that  follow. Tata Steel intends to reinforce its supply chain process and create enough value for its customer by gaining a clear competitive edge through the implementation of the Goldratt Theory.

“What we are attempting to do is double our profits in four years time, assuming no change in prices and volume,” said Mr Muthuraman. He further went on to add that “this journey we are going to undertake will involve a lot of turmoil since it would demand the unlearning of certain concepts and ways. It is going to be difficult to change the beliefs we have been living with for so long. So that is where the challenge lies.”

“Focusing on Viable Vision implementations and by using the TOC, industrial organisations can achieve unprecedented improvements in their bottomline performances.”
                                                                                                                              - Dr Eliyahu Goldratt

 

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