Bottlenecks and the Theory of Constraints
Every system has one binding constraint, and improvement anywhere else is an illusion that shows up as inventory rather than throughput. Find the constraint, protect it, subordinate everything to it, then elevate it - and expect the constraint to move once you do. In business analysis it explains why capex in the wrong place buys nothing.
5 books · 1 people behind it · 3 resources
Start here
- The GoalEliyahu M. Goldratt, Jeff Cox, 1984
- The Phoenix ProjectGene Kim, Kevin Behr, George Spafford, 2013
- Thinking in SystemsDonella H. Meadows, 2008
The people behind it 1
Each person holds a book in this entry or names it in their own tags.
Strategists 1
Resources 3
- The Power of ConstraintsCraig Shapiro · essay · How binding limits force the real decision.
- Slack: The Case for Unused CapacityShane Parrish · essay · Systems run at full utilisation have no room to absorb shocks.
- Return on Invested CapitalMichael J. Mauboussin · paper · How returns above the cost of capital are made and lost.
