From the course: Lean Foundations
Join today to access over 22,600 courses taught by industry experts or purchase this course individually.
The theory of constraints
- "For most business organizations, "the goal is to maximize throughput, "thereby maximizing cash flow." This is a quote from Eli Goldratt, and it's 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", Eli Goldratt took the principle of maximizing throughput down to the factory and equipment levels with his theory of…
Practice while you learn with exercise files
Download the files the instructor uses to teach the course. Follow along and learn by watching, listening and practicing.
Download courses and learn on the go
Watch courses on your mobile device without an internet connection. Download courses using your iOS or Android LinkedIn Learning app.