The Goal by Eli Goldratt
Notes from the book The Goal by Eli Goldratt
Check your numbers if you’d like, says Jonah. But if your inventories haven’t gone down.. and your employee expense was not reduced.. and if your company isn’t selling more products – which obviously it can’t, if you’re not shipping more of them – then you can’t tell me these robots increased your plant’s productivity.
We have to keep producing to stay efficient and maintain our cost advantage… says Alex.
Really?
Alex, if you’re like nearly everybody else in this world, you’ve accepted so many things without question that you’re not really thinking at all, says Jonah.
With does it mean to be productive?
Accomplishing goals.
And there is only one goal, no matter what the company.
You cannot understand the meaning of productivity unless you know what the goal is. Until then, you’re just playing a lot of games with numbers and words.
Throughput means through sales – not through production. If you produce something, but don’t sell it, it’s not throughput.
We are not concerned with local optimums.
So the way to express the goal is this.
Increase throughput while simultaneously reducing both inventory and operating expense.
Two types of resource. One type is what I call a bottleneck resource. The other very simply is a non-bottleneck resource.
You should not balanced capacity with demand. Balance the flow of product through the plant with demand from the market. Balance flow, not capacity.
The idea is to make the flow through the bottleneck equal to demand from the market.
We adjust capacity so the bottleneck is at the front of production.
Related posts:- Marketing - What's the point? On this blog I will share with you my journey with Business as honestly and openly as I can (given...
- Website marketing strategy consultancy My business is almost bankrupt. [Name withheld] is sitting with me and he tells me you can help. I hope...
- Become a Freelance Travel Writer If you love travel, and have a flare for creative writing, then maybe you too should become a freelance travel...
- The chasm between general advertising and direct response is wide - David Ogilvy Watch the great David Ogilvy explain the difference in value between ATL general brand awareness advertising... and BTL direct response...
- The Power of Full Engagement | Part 2 Take pen to paper and answer 3 questions: How excited are you to get to work in the morning? How...
- "Power Forum tag teaming" Part 3 of 3 Part three (if you missed part 1 go here increase website traffic thru forum marketing) In the previous two pieces...
- Real Estate Investments - Good Idea or Bad Idea? Right now, if there was a market that had bad news written all over it, it would be real estate....
- Investing in Canadian Lithium Mining Companies Bolivia is probably more well known for its lithium deposits than Canada is, but there's still a lot of lithium...
- Voice Over IP Telephony With business communications always the utmost consideration in the modern office it is imperative that the department or people responsible...
- 10 Reasons Why Internet Marketers Fail It is estimated that approximately 95% of people fail online, lose money, or never make a penny from internet marketing......