A fully dramatized version of the practical guide to business in fictional form offers an ensemble cast, accompanied by sound effects and music, that reveals how businesses can enhance productivity and provide personal fulfillment. Book available.
This is the Bible book on the Theory of Constraints
'Throughput,’’ he says, 'is the rate at which the system generates money through sales.’’Highlighted by 1183 Kindle customers
'Inventory is all the money that the system has invested in purchasing things which it intends to sell.’’Highlighted by 1159 Kindle customers
'Operational expense is all the money the system spends in order to turn inventory into throughput.’’Highlighted by 1147 Kindle customers
To make money by increasing net profit, while simultaneously increasing return on investment, and simultaneously increasing cash flow.Highlighted by 877 Kindle customers
Increase throughput while simultaneously reducing both inventory and operating expense.Highlighted by 866 Kindle customers
'They’re measurements which express the goal of making money perfectly well, but which also permit you to develop operational rules for running your plant,’’ he says. 'There are three of them. Their names are throughput, inventory and operational expense.’’Highlighted by 726 Kindle customers
'First, make sure the bottlenecks’ time is not wasted,’’ he says. 'How is the time of a bottleneck wasted? One way is for it to be sitting idle during a lunch break. Another is for it to be processing parts which are already defective—or which will become defective through a careless worker or poor process control. A third way to waste a bottleneck’s time is to make it work on parts you don’t need.’’Highlighted by 650 Kindle customers
you should not balance capacity with demand. What you need to do instead is balance the flow of product through the plant with demand from the market. This, in fact, is the first of nine rules that express the relationships between bottlenecks and non-bottlenecks and how you should manage your plant. So let me repeat it for you: Balance flow, not capacity.’’Highlighted by 645 Kindle customers
'A bottleneck,’’ Jonah continues, 'is any resource whose capacity is equal to or less than the demand placed upon it. And a non-bottleneck is any resource whose capacity is greater than the demand placed on it. Got that?’’Highlighted by 579 Kindle customers
1. IDENTIFY the system’s constraint(s). 2. Decide how to EXPLOIT the system’s constraint(s). 3. SUBORDINATE everything else to the above decision. 4. ELEVATE the system’s constraint(s). 5. WARNING!!!! If in the previous steps a constraint has been broken, go back to step 1, but do not allow INERTIA to cause a system’s constraint.Highlighted by 482 Kindle customers
Preceded by Indispensable, and followed by Lean Thinking.
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