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We had physical constraints that helped us to focus our attention, to zoom in on the real policy constraint. That isn’t the case in the division. Over there we have excess capacity going through our ears. We have excess engineering resources that we succeed so brilliantly in wasting. I’m sure that there is no lack of markets. We simply don’t know how to put our act together to capitalize on what we have.
Eliyahu M. Goldratt -
Every organization was built for a purpose. We haven’t built any organization just for the sake of its mere existence.
Eliyahu M. Goldratt
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You know what, it really highlights another problem. Changing the measurements’ scale of importance, moving from one world into another, is without a doubt a culture change. Let’s face it, that is exactly what we had to go through, a culture change. But how are we going to take the division through such a change?
Eliyahu M. Goldratt -
Can I assume that making people work and making money are the same thing?
Eliyahu M. Goldratt -
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.
Eliyahu M. Goldratt -
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.
Eliyahu M. Goldratt -
So this is the goal: To make money by increasing net profit, while simultaneously increasing return on investment, and simultaneously increasing cash flow.
Eliyahu M. Goldratt -
What is the real goal? Nobody here has even asked anything that basic.
Eliyahu M. Goldratt
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Incidentally, common sense is not so common and is the highest praise we give to a chain of logical conclusions.
Eliyahu M. Goldratt -
What are we asking for? For the ability to answer three simple questions: ‘what to change?’, ‘what to change to?’, and ‘how to cause the change?’ Basically what we are asking for is the most fundamental abilities one would expect from a manager. Think about it. If a manager doesn’t know how to answer those three questions, is he or she entitled to be called manager?
Eliyahu M. Goldratt -
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.
Eliyahu M. Goldratt -
Tell me how you measure me, and I will tell you how I will behave.
Eliyahu M. Goldratt -
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.
Eliyahu M. Goldratt -
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.
Eliyahu M. Goldratt
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What you’re saying is that making an employee work and profiting from that work are two different things.
Eliyahu M. Goldratt -
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.
Eliyahu M. Goldratt -
But as you said, the complexity of our organizations almost guarantees that there are not many of them.
Eliyahu M. Goldratt -
Everyone is silent.
Eliyahu M. Goldratt -
Tell me how you measure me and I’ll tell you how I will behave.
Eliyahu M. Goldratt