#852 Goldratt – three measures: throughput, operational expense, and inventory.

#852 Goldratt – three measures: throughput, operational expense, and inventory.
Principle:
QUOTES:
[1] Scripture

The underlying premise of the theory of constraints is that organizations can be measured and controlled by variations on three measures: throughput, operational expense, and inventory. Inventory is all the money that the system has invested in purchasing things which it intends to sell. Operational expense is all the money the system spends in order to turn inventory into throughput. Throughput is the rate at which the system generates money through sales.Before the goal itself can be reached, necessary conditions must first be met. These typically include safety, quality, legal obligations, etc. For most businesses, the goal itself is to make money. However, for many organizations and non-profit businesses, making money is a necessary condition for pursuing the goal. Whether it is the goal or a necessary condition, understanding how to make sound financial decisions based on throughput, inventory, and operating expense is a critical requirement. [2] 

[3]
NOTES:
QUESTIONS for thinking it through:
How could this clarify my Reality?
How could this benefit if added to my Disciplines?
Who needs to hear this?
SOURCES:
[1] Scripture
[2]  Theory of constraints From Wikipedia, the free encyclopedia at https://en.wikipedia.org/wiki/Theory_of_constraints
[3]
This is an anchor post; its purpose is to begin a conversation, supported by other quotes and resources.
Any Scripture quotations are from the Revised Standard Version of the Bible, copyright © 1946, 1952, and 1971 National Council of the Churches of Christ in the United States of America. Used by permission. All rights reserved.
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