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.
Wednesday, April 20, 2005
Expensive Resources and Constraints -- Engineer2Entrepreneur points to a piece in Forbes on Ten Laws of the Modern World. One of them sounds very familiar to me...
"Gilder's Law: Winner's Waste. The best business models, he said, waste the era's cheapest resources in order to conserve the era's most expensive resources."
Sounds a lot like subordinating to the constraint as well as a refutation of the myth that an idle resource is a waste. (The only time an idle resource is a waste is when that resource is the system's constraint...nothing is more expensive than a constraining resource wasted.)
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