Eliyahu M. Goldratt Quotes
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So the way to express the goal is this? Increase throughput while simultaneously reducing both inventory and operating expense.
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Can I assume that making people work and making money are the same thing?
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What was the nature of the answers, the solutions, that Jonah caused us to develop? They all had one thing in common. They all made common sense, and at the same time, they flew directly in the face of everything I’d ever learned. Would we have had the courage to try to implement them if it weren’t for the fact that we’d had to sweat to construct them? Most probably not. If it weren’t for the conviction that we gained in the struggle—for the ownership that we developed in the process—I don’t think we’d actually have had the guts to put our solutions into practice.
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We need financial measurements for sure—but we don’t need them for their own sake. We need them for two different reasons. One is control; knowing to what extent a company is achieving its goal of making money. The other reason is probably even more important; measurements should induce the parts to do what’s good for the organization as a whole.
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Tell me how you measure me, and I will tell you how I will behave.
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More importantly, our software worked. I don't just mean that it didn't bump, or that it performed according to the written specifications, or that it was efficient in producing reports. It really worked.
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I write down the three measurements which Lou and I agreed are central to knowing if the company is making money: net profit, ROI and cash flow.
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What you’re saying is that making an employee work and profiting from that work are two different things.
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You see, whenever there’s a hole in a buffer—and I’m not talking about just the work that’s supposed to be done on a given day, but the work for two or three days down the road—we go and check in which work center the materials are stuck.
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Incidentally, common sense is not so common and is the highest praise we give to a chain of logical conclusions.
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Let's not forget that in the throughput world the linkages are as important as the links. Which means that if we decided to do something in one link, we have to examine the ramifications on the other links.
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Open-minded people will not necessarily agree with me, not when my arguments don't make sense to them. But open-minded people do listen, and if I explain and when it is important, they are willing to invest in reevaluating their cause-and-effect connections.
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Well, I don’t. Not absolutely. But adopting "making money’’ as the goal of a manufacturing organization looks like a pretty good assumption. Because, for one thing, there isn’t one item on that list that’s worth a damn if the company isn’t making money.
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Every organization was built for a purpose. We haven’t built any organization just for the sake of its mere existence.
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Everyone is silent.
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A balanced plant is essentially what every manufacturing manager in the whole western world has struggled to achieve. It’s a plant where the capacity of each and every resource is balanced exactly with demand from the market.
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The minute you supply a person with the answers, by that very action you block them, once and for all, from the opportunity of inventing those same answers for themselves. If you want to go on an ego trip, to show how smart you are, give the answers. But if what you want is action to be taken, then you must refrain from giving the answers.
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Tell me how you measure me and I’ll tell you how I will behave.
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But as you said, the complexity of our organizations almost guarantees that there are not many of them.