Quotes About Management

To make money by increasing net profit, while simultaneously increasing return on investment, and simultaneously increasing cash flow.

organization?" he asks. "The goal is to produce products as efficiently as we can," I tell him. "Wrong," says Jonah. "That's not it. What is the real goal?

The new orders have changed the balance. We took more orders, which by themselves didn't turn any resource into a new bottleneck, but they did drastically reduce the amount of spare capacity on the non-bottlenecks, and we didn't compensate with increased inventory in front of the bottleneck.

En todos lados, el mejoramiento ha sido interpretado como sinónimo de ahorro en costos. La gente se concentra en reducir el gasto de operación como si fuera el indicador mas importante.

We need a process," he says. "That's obvious. It's too bad that the five-step process that we developed turned out to be false. No . . . Wait a minute Alex, that's not the case. At the end, the problem was not wandering bottlenecks. It was insufficient protection for the existing bottlenecks. Maybe we can use that five-step process?

La máxima desviación de una operación precedente pasara a ser el punto inicial de la operación siguiente.

If synchronized efforts are required and the contribution of one link is strongly dependent on the performance of the other links, we cannot ignore the fact that organizations are not just a pile of different links, they should be regarded as chains.

But as you said, the complexity of our organizations almost guarantees that there are not many of them.

What are we asking for? 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. Think about it. If a manager doesn't know how to answer those three questions, is he or she entitled to be called manager?

the best thing to do would be to reorganize everything so the resource with the least capacity would be first in the routings. All other resources would have gradual increases in capacity to make up for the statistical fluctuations passed on through dependency.

Deciding that the company is wasting too much money on duplicated efforts and thus moving to a more centralized mode. Ten years later, we want to encourage entrepreneurship and we move back to decentralization.

Check your numbers if you'd like," says Jonah. "But if your inventories haven't gone down . . . and your employee expense was not reduced . . . and if your company isn't selling more products—which obviously it can't, if you're not shipping more of them—then you can't tell me these robots increased your plant's productivity.

The daring nature of Ford's method is revealed when one realizes that a direct consequence of limiting the space is that when the allotted space is full, the workers feeding it must stop producing. Therefore, in order to achieve flow, Ford had to abolish local efficiencies. In other words, flow lines are flying in the face of conventional wisdom; the convention that, to be effective, every worker and every work center have to be busy 100% of the time.

that's a third assumption that's wrong," I say. "We've assumed that utilization and activation are the same. Activating a resource and utilizing a resource are not synonymous.

A bottleneck," Jonah continues, "is any resource whose capacity is equal to or less than the demand placed upon it. And a non-bottleneck is any resource whose capacity is greater than the demand placed on it.

You mean make them into non-bottlenecks," says Stacey. "No," he says. "Absolutely not. The bottlenecks stay bottlenecks. What we must do is find enough capacity for the bottlenecks to become more equal to demand.

Ürünün deÄŸerini en baÅŸta pazar belirler" dedi Lou. "Bir ÅŸirket eÄŸer para kazanmak istiyorsa, ürünün deÄŸeri—bizim ona biçtiÄŸimiz fiyatsatt???m?z birim ba??na stoklara yap?lan yat?r?mla toplam iÅŸletme giderlerinin toplam?ndan daha fazla olmal?d?r.

Kanban system directs each work center when and what to produce but, more importantly, it directs when not to produce. No card—no production.

All this is, if I understand it correctly, is a different way of doing the accounting. All employee time—whether it's direct or indirect, idle time or operating time, or whatever—is operational expense, according to Jonah. You're still accounting for it. It's just that his way is simpler, and you don't have to play as many games.

You forced us to view production as a means to satisfy sales. I want to change the role production is playing in getting sales.

utilizing" a resource means making use of the resource in a way that moves the system toward the goal. "Activating" a resource is like pressing the ON switch of a machine; it runs whether or not there is any benefit to be derived from the work it's doing. So, really, activating a non-bottleneck to its maximum is an act of maximum stupidity.

What my people and I have done is to examine daily the queues in front of the assembly and in front of the bottlenecks— we call them 'buffers.' We check just to be sure that everything that's scheduled to be worked on is there—that there are no 'holes.' We thought that if a new bottleneck pops up it would immediately show up as a hole in at least one of these buffers.

You see, whenever there's a hole in a buffer—and I'm not talking about just the work that's supposed to be done on a given day, but the work for two or three days down the road—we go and check in which work center the materials are stuck.

Increase throughput while simultaneously reducing both inventory and operating expense.