The goal of every business organization is to maximize throughput. Lean practices can be used in conjunction with the Theory of Constraints to accomplish this goal. In this video, Steven briefly explains the bottleneck concept and provides several examples of how Lean can support this approach to factory management.
- For most business organizations the goal…is to maximize throughput, thereby maximizing cash flow.…This is a quote from Eliyahu Goldratt…and is true in delivering physical products to your customer…as well as providing services.…Every aspect of how businesses do business…comes down to this one objective, maximize throughput.…Let's look at a definition of throughput…at three different levels.…First at the company level, throughput is the rate…at which you are generating cash…by selling your products.…
Second at the factory level, throughput is the rate…at which you are making those products that you sell.…And third at the equipment level, throughput is the rate…at which the individual machine is producing output…to help make those products that you're selling.…In his now famous book, The Goal, Eliyahu Goldratt…took the principle of maximizing throughput…down to the factory and equipment levels…with his theory of constraints.…The theory of constraints proposes to maximize factory…throughput by efficiently managing the bottlenecks,…
Lean concepts have been successfully applied to every aspect of doing business. In this course, learn the principles of lean and how they are used in processes, production, and services. Instructor Steven Brown also explains how lean thinking impacts the organization, from the overall business culture to day-to-day work activities.
LinkedIn Learning (Lynda.com) is a PMI Registered Education Provider. This course qualifies for professional development units (PDUs). To view the activity and PDU details for this course, click here.
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- Cite the focus of a lean strategy.
- Explain what a “rule of complexity” is.
- Name the three key measures of inventory.
- List the 5S tools.
- Define a lean transportation system.
- Describe the characteristics of a lean purchasing organization.
- Identify the characteristics of a lean company.