Eliyahu Moshe Goldratt (March 31, 1947 June 11, 2011) was an Israeli business management guru known for his work in the development of the Optimized Production Technique, the Theory of Constraints (TOC), the Thinking Processes, Drum-Buffer-Rope, and Critical Chain Project Management (CCPM). Goldratt authored several influential books in the realm of business, focusing on the application of TOC to manufacturing, engineering, and other business processes.
Goldratt's seminal work, The Goal, tells the story of a manager at the helm of a struggling manufacturing operation. Through the narrative, Goldratt introduces the concept of identifying and overcoming system constraints to improve overall throughput. His writing often emphasizes the counterintuitive notion that having excess capacity at non-critical points is crucial to maintaining operations.
Not just a theoretical mind, Goldratt applied his innovative ideas in practical scenarios. In the 1970s, he developed production scheduling software that became widely commercialized, leading to the formation of his company, Creative Output. Despite the success and the recognition by Inc. Magazine as one of the fastest-growing companies in the U.S., he experienced frustration with the slow client acquisition process.
Resolved to break through market barriers, Goldratt took an unconventional approach by conveying his method through a manufacturing novel, resulting in the creation of The Goal. The book's success transformed Goldratt into a sought-after figure, leading to the establishment of the Avraham Y. Goldratt Institute (AGI) in 1987, with a mission to develop and disseminate knowledge around TOC, which Goldratt saw as a universal theory for managing organizations.