Decision making Quote by Eliyahu M. Goldratt
““STEP 1. Identify the system’s bottlenecks. (After all it wasn’t too difficult to identify the oven and the NCX10 as the bottlenecks of the plant.) STEP 2. Decide how to exploit the bottlenecks. (That was fun. Realizing that those machines should not take a lunch break, etc.) STEP 3. Subordinate everything else to the above decision. (Making sure that everything marches to the tune of the constraints. The red and green tags.) STEP 4. Elevate the system’s bottlenecks. (Bringing back the old Zmegma, switching back to old, less “effective” routings. . . .) STEP 5. If, in a previous step, a bottleneck has been broken go back to step 1.””
About This Quote
Source Book: The Goal by Eliyahu M. Goldratt, 1984
Identify constraints, exploit them, align all actions, then raise the constraint; repeat when a new one appears.
In simple terms: Focus on bottlenecks, use them, align everything, then improve them.
Key Takeaway
Manage constraints, then iterate.
Themes
process improvement
systems thinking
continuous improvement
Mood
analytical
determined
pragmatic
Type
instructional
strategic
When to use this quote
- manufacturing
- project planning
- software development
- logistics
- service industry
Key Concepts
Theory of Constraints
operations management
Questions to Reflect On
- What constraint is limiting your current performance?
- How can you ensure the next step adds value?
A Different Perspective
Only works if bottlenecks are clearly measurable and controllable.
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