This Focused Performance Weblog is a "business management blog" containing links and commentary related primarily to organizational effectiveness with a "Theory of Constraints" perspective. TOC is noted for its applications in Project Management and Multi-Project Management (Critical Chain) and Operations Management (Drum-Buffer-Rope), as well as in Marketing, Strategic Planning and Change Management (TOC Thinking Processes). If you are on an archive page, current postings are found here.
"Each of us has some throughput for our activities. It can be estimated either in dollar terms or unit terms. It can be viewed for an entire plant or one individual. I'm convinced understanding it leads to better decisions. Lean Systems are most correctly driven by looking at the costs of flow.
"I encourage you to think about throughput in your world today. Try to calculate what the flow per hour or day might be. What limits it? What might increase it? It can radically modify your decisions...."
The lead-in to this excerpt is a review of weekend activity and a comparison of apparent management decisions made at a Jiffy Lube and a carwash, to telling effect. Another way of looking at the thought process involved is that to achieve maximum bottom line is to focus on the ability to deliver the top line -- to maximize the flow of "goal units" through the system.
posted by Frank - Permanent Link -
|