“In order to find and eliminate a Constraint, Goldratt proposes the “Five Focusing Steps,” a method you can use to improve the Throughput of any System: 1. Identification: examining the system to find the limiting factor. If your automotive assembly line is constantly waiting on engines in order to proceed, engines are your Constraint. 2. Exploitation: ensuring that the resources related to the Constraint aren’t wasted. If the employees responsible for making engines are also building windshields, or stop building engines during lunchtime, exploiting the Constraint would be having the engine employees spend 100 percent of their available time and energy producing engines, and having them work in shifts so breaks can be taken without slowing down production. 3. Subordination: redesigning the entire system to support the Constraint. Let’s assume you’ve done everything you can to get the most out of the engine production system, but you’re still behind. Subordination would be rearranging the factory so everything needed to build the engine is close at hand, instead of requiring certain materials to come from the other end of the factory. Other subsystems may have to move or lose resources, but that’s not a huge deal, since they’re not the Constraint. 4. Elevation: permanently increasing the capacity of the Constraint. In the case of the factory, elevation would be buying another engine-making machine and hiring more workers to operate it. Elevation is very effective, but it’s expensive—you don’t want to spend millions on more equipment if you don’t have to. That’s why Exploitation and Subordination come first: you can often alleviate a Constraint quickly, without resorting to spending more money. 5. Reevaluation: after making a change, reevaluating the system to see where the Constraint is located. Inertia is your enemy: don’t assume engines will always be the Constraint: once you make a few Changes, the limiting factor might become windshields. In that case, it doesn’t make sense to continue focusing on increasing engine production—the system won’t improve until windshields become the focus of improvement. The “Five Focusing Steps” are very similar to Iteration Velocity—the more quickly you move through this process and the more cycles you complete, the more your system’s Throughput will improve.”
― The Personal MBA: Master the Art of Business
― The Personal MBA: Master the Art of Business
“1. Watch—What’s happening? What’s working and what’s not? 2. Ideate—What could you improve? What are your options? 3. Guess—Based on what you’ve learned so far, which of your ideas do you think will make the biggest impact? 4. Which?—Decide which change to make. 5. Act—Actually make the change. 6. Measure—What happened? Was the change positive or negative? Should you keep the change, or go back to how things were before this iteration? Iteration is a cycle—”
― The Personal MBA: Master the Art of Business
― The Personal MBA: Master the Art of Business
“Goods in any storehouse are useless until somebody takes them out and puts them to the use they were meant for. That applies to what man stores away in his brain, too. —THOMAS J. WATSON, FORMER PRESIDENT OF IBM”
― The Personal MBA: A World-Class Business Education in a Single Volume
― The Personal MBA: A World-Class Business Education in a Single Volume
“you cannot understand life and its mysteries as long as you try to grasp it. Indeed, you cannot grasp it, just as you cannot walk off with a river in a bucket. If you try to capture running water in a bucket, it is clear that you do not understand it and that you will always be disappointed, for in the bucket the water does not run. To “have” running water you must let go of it and let it run. The same is true of life and of God.”
― The Wisdom of Insecurity
― The Wisdom of Insecurity
“Economic Values that people typically consider when evaluating a potential purchase. They are: 1. Efficacy—How well does it work? 2. Speed—How quickly does it work? 3. Reliability—Can I depend on it to do what I want? 4. Ease of Use—How much effort does it require? 5. Flexibility—How many things does it do? 6. Status—How does this affect the way others perceive me? 7. Aesthetic Appeal—How attractive or otherwise aesthetically pleasing is it? 8. Emotion—How does it make me feel? 9. Cost—How much do I have to give up to get this?”
― The Personal MBA: Master the Art of Business
― The Personal MBA: Master the Art of Business
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