[Throughput is the] rate at which the system generates money through sales. - Eliyahu M. Goldratt

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[Throughput is the] rate at which the system generates money through sales.

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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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Additional quotes by Eliyahu M. Goldratt

For a foreman, heat-treat seems like a very small kingdom, not much of a prize. There is nothing intrinsically attractive about running that operation, and having only two people to manage makes it seem like no big deal. To prevent it from seeming like a demotion to them, I make a point to go down there periodically on each of the shifts. In talking to the foreman, I drop some rather direct hints that the rewards will be great for anyone who can improve the output of heat-treated parts.

For the ability to answer three simple questions: ‘what to change?’, ‘what to change to?’, and ‘how to cause the change?’ Basically what we are asking for is the most fundamental abilities one would expect from a manager.

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Yet . . . why can’t we all just walk at the same pace as Ron and stay together? I’m watching the line when something up ahead catches my eye. I see Davey slow down for a few seconds. He’s adjusting his packstraps. In front of him, Ron continues onward, oblivious. A gap of ten . . . fifteen . . . twenty feet opens up. Which means the entire line has grown by 20 feet. That’s when I begin to understand what’s happening. Ron is setting the pace. Every time someone moves slower than Ron, the line lengthens. It wouldn’t even have to be as obvious as when Dave slowed down. If one of the boys takes a step that’s half an inch shorter than the one Ron took, the length of the whole line could be affected. But what happens when someone moves faster than Ron? Aren’t the longer or faster steps supposed to make up for the spreading? Don’t the differences average out? Suppose I walk faster. Can I shorten the length of the line? Well, between me and the kid ahead of me is a gap of about five feet. If he continues walking at the same rate, and if I speed up, I can reduce the gap — and maybe reduce the total length of the column, depending upon what’s happening up ahead. But I can only do that until I’m bumping the kid’s rucksack (and if I did that he’d sure as hell tell his mother). So I have to slow down to his rate. Once I’ve closed the gap between us, I can’t go any faster than the rate at which the kid in front of me is going. And he ultimately can’t go any faster than the kid in front of him. And so on up the line to Ron. Which means that, except for Ron, each of our speeds depends upon the speeds of those in front of us in the line.

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