Eli Goldratt passed away at his home in Israel on June 11th, 2011, in the company of his family and close friends. - Eliyahu M. Goldratt

What we know now,” I tell him, “is that we shouldn’t be looking at each local area and trying to trim it. We should be trying to optimize the whole system. Some resources have to have more capacity than others. The ones at the end of the line should have more than the ones at the beginning — sometimes a lot more. Am I right?

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.

So this is the goal: To make money by increasing net profit, while simultaneously increasing return on investment, and simultaneously increasing cash flow.