that’s a third assumption that’s wrong,” I say. “We’ve assumed that utilization and activation are the same. Activating a resource and utilizing a re… - Eliyahu M. Goldratt

Putting it precisely, activating a resource and utilizing a resource are not synonymous.

Deciding that the company is wasting too much money on duplicated efforts and thus moving to a more centralized mode. Ten years later, we want to encourage entrepreneurship and we move back to decentralization.

My system does not make sense at all, but by God it’s working.

Well, since we started keeping data on the bottlenecks, I’ve been noticing I’m able to predict several weeks in advance what each bottleneck will be working on at a particular time. See, as long as I know exactly what’s in queue, I just take the average setup and process times for each type of part, and I’m able to calculate when each batch should clear the bottleneck. Because we’re only dealing with one work center, with much less dependency, we can average the statistical fluctuations and get a better degree of accuracy.