Maybe I should start with a question,” he says. “Do you agree that inventory is a liability?” “Of course, everybody knows that. And even if we didn’t… - Eliyahu M. Goldratt

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Maybe I should start with a question,” he says. “Do you agree that inventory is a liability?” “Of course, everybody knows that. And even if we didn’t know it, the last few months have shown to what extent inventory is a liability.

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About Eliyahu M. Goldratt

Eliyahu Moshe Goldratt (March 31, 1947 – June 11, 2011) was an Israeli physicist who became a business management guru

Biography information from Wikiquote

Also Known As

Native Name: אליהו גולדרט
Alternative Names: Eliyahu Goldratt Eliyahu Moshe Goldratt
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STEP 1. Identify the system’s bottlenecks. (After all it wasn’t too difficult to identify the oven and the NCX10 as the bottlenecks of the plant.)
STEP 2. Decide how to exploit the bottlenecks. (That was fun. Realizing that those machines should not take a lunch break, etc.)
STEP 3. Subordinate everything else to the above decision. (Making sure that everything marches to the tune of the constraints. The red and green tags.)
STEP 4. Elevate the system’s bottlenecks. (Bringing back the old Zmegma, switching back to old, less “effective” routings. . . .)
STEP 5. If, in a previous step, a bottleneck has been broken go back to step 1.

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Look, we give sales a rigid lead time for each product. So if it’s not in finished goods, those are the numbers they should use to promise to clients. Yeah, they deviate from it, but not by much. Maybe there should be another way. Maybe the quoted lead times should be done case by case, according to the load on the bottlenecks. And maybe we shouldn’t regard the quantities required as if we have to supply them in one shot.

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