Eliyahu M. Goldratt Quotes

14 Sourced Quotes

Make the bottlenecks work only on what will contribute to throughput today … not nine months from now. That's one way to increase capacity at the bottlenecks. The other way you increase bottleneck capacity is to take some of the load off the bottlenecks and give it to non-bottlenecks.

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

Eliyahu M. Goldratt
If the goal is to make money, then (putting it in terms Jonah might have used), an action that moves us toward making money is productive. And an action that takes away from making money is non-productive.

Eliyahu M. Goldratt
Fundamentally, a manager is looking to answer these questions: 'what to change?',' what to change to?' and ' how to cause the change?'

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

Eliyahu M. Goldratt
There are three measurements which express the goal of making money perfectly well, but which also permit you to develop operational rules for running your plant. Their names are throughput, inventory and operational expense.

Eliyahu M. Goldratt
I smile and start to count on my fingers: One, people are good. Two, every conflict can be removed. Three, every situation, no matter how complex it initially looks, is exceedingly simple. Four, every situation can be substantially improved; even the sky is not the limit. Five, every person can reach a full life. Six, there is always a win / win solution. Shall I continue to count?

Eliyahu M. Goldratt
Tell me how you measure me, and I will tell you how I will behave.

Eliyahu M. Goldratt
If we reduce batch sizes by half, we also reduce by half the time it will take to process a batch. That means we reduce queue and wait by half as well. Reduce those by half, and we reduce by about half the total time parts spend in the plant. Reduce the time parts spend in the plant and our total lead time condenses. And with faster turn-around on orders, customers get their orders faster.

Eliyahu M. Goldratt
My system does not make sense at all, but by God it's working.

Eliyahu M. Goldratt
[Inventory is measured by] the money the system invests in purchasing things the system intends to sell.

Eliyahu M. Goldratt
[Operating expense is defined as] all the money the system spends in turning inventory into throughput.

Eliyahu M. Goldratt
If you don't manufacture a quality product all you've got at the end is a bunch of expensive mistakes.

Eliyahu M. Goldratt
The goal is not to improve one measurement in isolation. The goal is to reduce operational expenses AND reduce inventories and increase throughput simultaneously.

Eliyahu M. Goldratt