throughput- the rat at which the system generates money through sales
Inventory-all the money the system invests in purchasing things the system intends to sell
Operating Expense- all the money the system spends turning inventory into throughput
The Five Steps of Focusing
1. Identify the systems constraints
2.Decided how to exploit the systems constraints
3.Subordinate everything else to the above decision
4.Elevate the systems constaints
5.If in the previous steps a constraint has been broken, go back to step 1
warning dont let inertia to become a constraint
Five steps of Focusing ( Drum-Buffer- Rope)
Drum-the most constraining element in a process which should be used to pace the entire system(identify)Buffer- a protective cushion in the form of inventory or timing to protect the planned flow against statistical fluctuation (Exploit)
Rope-backwards scheduling( offset lead time) of material released into the system on the basis of the constraint usage (Subordinate)
Activation is not equal to utilization
activation is not equal to utilization
Paradigms
is a set of rules or regulations that do two things
1. establish or define boundaries
2. it tells you how to behave inside the boundaries
EX. Morning reteen
Paradigm paralysis
terminal disease of certainty
everyone has paradigm paralysis
creators of the new paradigms tend to be ____
outsiders
Switching to a new paradigms takes ______
courageous
______ type of thinking is a Paradigm
systems
systems
a set of interrelated parts that must work together
what paradigms do you feel are challenged in the goal
that a busy employee is a productive employee
______ is a sign of not being efficient
inventory
a company that is working at 100 % efficiency is heading into bankruptcy
true
A bottleneck is a constraint, but a constraint is not always a bottleneck
true
system thinking is better for solving problems (look at the bigger picture)
true
there is no such thing as the perfect (optimal) solution
true
improvement
where you are at and where you want to go and measurements