The network of interdependencies that makes up an organizational system requires a mechanism to support all the conversations taking place as well as a clear-cut measurement system to assess the effectiveness of these conversations towards the stated goal of the system. A suitable name for this mechanism is “Information System” (IS).

An IS should mirror the conversations that take place in the system and facilitate the decision process. Accordingly, any sensible IS design should originate from the model that the organization has chosen to pursue its goals. An IS should also provide a way to measure how well and how fast a Company is achieving the above mentioned goals.

The Organizational Model supported by The Decalogue is Deming’s “production viewed as a system” where a part of the system is elected as a “constraint”.

The ‘choked’ system

The Decalogue acts as a guideline and supports a decision process based on:

• Throughput maximization
• Well defined interdependencies
• Statistical understanding of processes
• Finite capacity scheduling
• Buffer based control mechanism (via SPC)
• Replenishment based on sales

Accordingly, an IS inspired by a systemic view of the organization based on Deming and TOC should allow easy and effective monitoring of the following:

• Rate (pace) of cash generation through sales (Tput = Sales – TVC)
• Statistical predictability of all the critical key performance indicators
• A synchronization mechanism between sales and purchasing
• Tracking of inventory throughout the system

Most importantly, an Information System should enable the proper utilization of finite resources in order to maximize what the organization can realistically achieve. This is accomplished via an algorithm for finite capacity scheduling. Such an algorithm serves as the basis for building an organization as a network of projects.

An equally important feature of an IS (and the Technology that supports it) is the ability to provide managers, at every level, with the ability to take informed decisions. In a constrained system aiming at well-defined goals (i.e. cash) this is made possible by monitoring the impact that our decisions have on Throughput, Operating Expense and Inventory. Their relations are defined as:

Tput = Sales – TVC

Net Profit = Tput – OE

Cash Profit = Tput – OE – I (Delta I over time)

Two important quantities should also be recorded and easily accessed: Shipment on Time and Time of transit of Inventory in the system.

We monitor the former with a quantity called T$D; it is obtained by multiplying the Tput content of a shipment times the delay in shipment measured in days; we understand the magnitude of the latter I$D by multiplying the dollar value of our inventory times the time it stays in the system.

T, OE, I (and their relations) and I$D and T$D in The Decalogue approach are understood in terms of their variation and SPC is applied to gain insight from their monitoring.