πŸ“š Node [[theory-of-constraints]]
↳ πŸ““ Subnode [[@forshaper/theory of constraints]]
πŸ““ theory of constraints.md (text) by @forshaper
  • [[Throughput]]: rate at which the [[system]] generates [[money]] through [[sales]].
  • [[Inventory]]: all the [[money]] the [[system]] has invested in purchasing things which it intends to sell.
  • Operational expense: all the money the system spends in order to turn [[inventory]] into [[throughput]].
  • [[Inventory]] is sellable, [[expense]] is not.
  • The goal is not to reduce operational expense by itself. The goal is not to improve one measurement in [[isolation]]. The goal is to reduce operational expense and reduce inventory while increasing throughput.
  • Accumulation of [[diversity]]. [[Dependency]] limits the [[opportunities]] for higher [[variance]].
  • Whoever is [[moving]] slowest in a ruck governs throughput. "You're only as fast as your slowest Joe".
  • Look at the [[system]] as a whole, don't try to maximize [[local]]ly.
  • [[Bottleneck]] resource: any resource whose [[capacity]] is equal to or less than the [[demand]] placed on it.
  • Non-bottleneck [[resourceful]] : Any resource whose capacity is greater than the demand placed on it.
  • Activating a resource is not the same as utilizing a resource. A resource is utilized when its activation advances toward the Goal.
  • A [[system]] of [[local]] optima is not an optimal system. (Do not attempt to optimize every resource.)
  • Anchor inventory to bottlenecks.
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πŸ›οΈ Stoas for [[@forshaper/theory of constraints]]
πŸ“– Open document (Hedgedoc) at https://doc.anagora.org/theory-of-constraints
πŸ“– Open document (Etherpad) at https://stoa.anagora.org/p/theory-of-constraints
πŸ“Ή Video conferencing space (Jitsi Meet) at https://meet.jit.si/theory-of-constraints