A small number of constraints prevents any management system from achieving more of its goals
- Have a focusing process to identify constraint; then restructure to address.
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Fundamental assumption: Throughput accounting can measure success for organization
- Throughput: Rate at which goals are achieved
- Operational Expense: Money spent achieving goals
- Investment/Inventory: Money invested in system
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Focus Process Loop
- Identify constraint
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Decide how to exploit it
- Seeing constraints as opportunity not a problem.
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Subordinate everything to the above decision
- Make sure all parts of the system are tuned to support the constraint
- (Most important yet hardest step)
- Alleviate the constraint
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Thinking process
- What needs changing?
- How should it change?
- What action will change it?
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