Tag Archives: Eliyahu Goldratt

Karol Adamiecki: Management Harmony

We tend to think of leading management theorists as coming from the United States. This seems especially so of Scientific Management. But when the privilege of naming things for the world’s largest audience goes to those who write in English, history creates a bias. And because that audience largely reads only one language, that bias gets amplified.

One of many losers from the Anglo-centric nature of management and business thinking was Karol Adamiecki. He was a Polish engineer, turned economist and management thinker, who can claim to have invented the Gantt Chart before Henry Gantt, PERT before the US Navy, the Theory of Constraints before Eliyahu Goldratt, and much of Scientific Management before FW Taylor.

Karol Adamiecki 1866-1933

Karol Adamiecki 1866-1933

Short Biography

Karol Adamiecki was born in southern Poland, in 1866. He studied engineering at the Institute of Technology in St Petersburg, graduating in 1891. He then returned to his home town, where he took charge of a steel mill. He stayed for nearly 30 years, during which time, he formed his ideas about management.

In 1919, he left the mill, and became a lecturer at the Warsaw Polytechnic, becoming a professor in 1922. There, he further codified and published his ideas. In 1925, he founded the Institute of Scientific Management in Warsaw, becoming its Director and remaining until his death in 1933.

Adamiecki’s  Law of Harmony in Management

While running the steel rolling mill, Karol Adamiecki developed sophisticated thinking around management that was, from our perspective, ahead of its time. The three principal components were:

  1. Harmony of Choice
    Management should select and supply production tools that are mutually compatible. He went on to argue that this should be especially so in terms of their output production speed. This anticipated the Theory of Constraints, and the ideas of Eliyahu Goldratt by 75 years or more.
  2. Harmony of Doing
    Sequencing and scheduling of activities need to be fully co-ordinated to optimise production efficiency. Here, he not only developed a tool that looks very similar to the Gantt Chart, well before Gantt published. His approach also anticipated the US Navy’s Program Evaluation and Review Technique (PERT) and du Pont’s Critical Path Method (CPM) by over 50 years.
  3. Harmony of Spirit
    I imagine the Pharaohs’ overseers were constantly emphasising the importance of creating a good team. But this is another theme that feels very modern – perhaps even more so than the other two. Let’s not forget that Taylor’s view of Scientific Management was mechanistic and process-oriented. It took Mayo to bring humanism to the fore, and ideas of team working in management only started to dominate from the 1970s.

Adamiecki started to publish in 1898, several years before Taylor did so.

Harmony of Doing:
The Harmonograph or Harmonogram (or Harmonograf)

In 1896, Adamiecki solved the problem of sequencing and scheduling in production and published, in1903, his solution. He called it a Harmonograf. And it looks very much like what we now call a Gantt Chart. However, Henry Gantt did not publish until 1910. There is no evidence to suggest Gantt copied Adamiecki’s idea.

In constructing the Harmonograf, however, Adamiecki describes a process that is pretty similar to the PERT and CPM methods. He certainly is able to include critical path and float. These are two concepts Gantt did not consider at all.

As Adamiecki described his methods, he was able to optimise production schedules by sliding paper tabs and arranging paper strips. In a very real sense, he developed an analog scheduling computer.

Assessment

Without a doubt, Adamiecki’s thinking was of its time, but way ahead of its rediscovery. He possibly failed to realise just how valuable it was. But more likely, he simply suffered from an Anglophone bias in scholarship and manufacturing. Publishing in Polish simply did not get him recognition far beyond the borders of his home country. Even now, it is only in the Karol Adamiecki University of Economics in Katowice, that his name is celebrated.

And I have to ask, could this happen again? Yes. I think it can, will and probably is happening now. Last week, we met Vlatka Hlupic. Arguably, her work is known despite her Croatian origin, because she lives and works in London. With the US and the UK increasingly looking to close their borders for differing but related reasons, the next Karol Adamiecki’s work could well lay undiscovered for just as long as that of the first.

Eliyahu Goldratt: Theory of Constraints

Eliyahu Goldratt was an Israeli business thinker, who popularised his approach to transforming the performance of business processes with a novel. Co-written with Jeff Cox, The Goal has been one of the most influential business books of the late Twentieth Century.

Eliyahu Goldratt

Eliyahu Goldratt

Short Biography

Eliyahu Goldratt was born in 1947 and lived his life in Israel. He studies Physics at university, gaining his BSc at Tel Aviv University, and his Masters of Science and Doctorate of Philosophy degrees from Bar-Ilan University. His PhD research was into the physics of fluid flow, and afterwards, he applied this thinking to systems within organisations.

He used an algorithm that he had developed during his doctoral studies as the basis for creating production scheduling software, which he called Optimized Production Technology. In 1975, he founded a company with the same name, to implement the software within Israeli companies.

The company grew, opening subsidiaries in the US (1979) and the UK (1982), changing the business name to Creative Output. It started to provide training alongside software implementation. In 1984, Goldratt published ‘The Goal‘. This was a business book, about process optimizaton, in the form of a novel. Jeff Coz provided the creative writing, while Goldratt set out the principles. The Goal became an international best seller.

The book’ success, and Goldratt’s response, created tensions with the company’s shareholders, and in 1986, he left Creative Output and founded AGI, The Avraham Y Goldratt Institute (named after his father). Through the late 1980s and the 1990s, Goldratt continued to develop his ideas, which became known as The Theory of Constraints (or sometimes just as TOC).

In 1997, Goldratt retired from AGI, but continued to found consulting businesses and write books, applying his Theory of Constraints to arenas like marketing and project management. He died at a relatively young age, in 2011.

The Theory of Constraints

The Theory of Constraints was not new when Goldratt conceived it. There are many antecedents both for its primary application in process engineering and for other applications like the Critical Chain approach to project management, set out in his 1997 book, ‘Critical Chain‘.

Indeed, many of Goldratt’s ideas are applied in Lean Manufacturing, and overlap substantially with those of Taiichi Ohno. The essence of Goldratt’s approach is three questions and a five step process.

The questions are intended to direct changes that will optimise a system. They  are deceptively simple:

  1. What to change?
  2. What to change to?
  3. How to make the change?

The principle that Goldratt based his theory on is also very simple. If there nothing is preventing a system from achieving higher throughput, then its throughput would be unlimited. This is obviously absurd, so there must be constraints. When you find the constraints and lift their capacity, the system’s capacity and productivity (to achieve its goal) will increase. So the steps for doing this are:

  1. Identify the system’s greatest constraint.
  2. Decide how to exploit the system’s constraints.
  3. Subordinate everything else to the above decisions.
  4. Elevate the system’s constraints.
  5. When you have lifted the system’s constraint, go back to step 1.

Goldratt likened the limiting resource or asset, which constrains the rest of the system, to a drum. Its beat determines the rhythm of the system. If you cannot raise its tempo, you must do everything you can to avoid wasting its capacity. To maximise throughput at this constraint, other elements of the process, that feed it, need to have surplus capacity, to create a buffer  and reduce risk that, if they fail, the constraint will kick in.

This is a principle Goldratt applied in a variety of contexts, and there are now a great many of businesses that consult on these applications.

Goldratt’s legacy has been a highly analytical approach to finding cause and effect. Some criticise it for its simplicity and others because it may not produce the most optimal solutions. And of course, others are concerned about the extent to which he did or did not acknowledge his debt to earlier thinkers. His 2006 article, ‘Standing on the Shoulders of Giants‘ does explicitly reference the Toyota Production System very clearly.

For us, however, the message is clear. The Theory of Constraints is widely used and has made a large contribution to the productivity of many businesses. So for that reason, any manager should have at least a passing understanding of its principles.