A Process of Ongoing Improvement. Pursue knowledge, not for its own sake, but to make our world better and to make life more fulfilling. Seek how things work in reality and why it works that way. Being a scientist means looking at reality and thinking logically and precisely about what we see. Have the courage to face inconsistencies between what we see and deduce and the way things are done. The challenging of basic assumptions is essential to breakthroughs. Productivity is th act of bringing a company closer to its goal. Every action that brings a company closer to its goal is productive. Every action that does not bring a company closer to its goal is not productive. productivity is meaningless unless you know what your goal is. The goal of a manufacturing organization is to make money. You may be doing something, but is it going to help you make money?. Make money by increasing net profit, while simultaneously increasing return on investment, and simultaneously increasing cash flow. I am all I have. Throughput, inventory and operational expense. Throughput is the rate at which the system generates money through sales. If you produce something, but don't sell it, it's not throughput. A measurement not clearly defines is worse than useless. Inventory is all the money that the system has invested in purchasing things which it intends to sell. Operational expense is all the money that system spends in order to turn inventory into throughput. A plant in which everyone is working all the time is very inefficient. The only way to create excess inventories is by having excess manpower. A balanced plant is a plant where the capacity of each and every resource is balanced exactly with demand from the market. The goal is to reduce operational expense and reduce inventory while simultaneously increasing throughput. Dependency limits the opportunities for higher fluctuations. Dependent events mean that an event, or a series of events, must take place before another can begin... the subsequent event depends upon the one prior to it. Statistical fluctuations is information that varies from one instance to the next. Distinguish between bottleneck resources and non bottle neck resources. a bottleneck is any resource whose capacity is equal to or less than the demand placed upon it. a nonbittlebeck resource is any resource whose capacity is greater than the demand placed on it. you should not balance capacity with demand. balance the flow of product through the plant with demand from the market. the bottleneck flow should be on par with demand. As you climb the ladder and your responsibilities grow, you should learn to rely more and more on yourself. first you should find out exactly what it is you want to learn. dont give the answers, just ask the questions. throughput inventory operating expenses. in order to improve the strength of the chain, you must find the weakest link. syep 1: identify the systems bottlenrcks 2: decide how to exploit the bottlenecks 3: subordinate everything else to the above decision 4: elevate the systems bottlenecks 5: if, in a previous step, a bottleneck has been broken go back to step 1. 1. Identify the systems constraints 2. Decide how to exploit the systems constraint 3. Subordinate everything else to the above decision 4. Elevate the systems constraints 4. Warning! If I’m the previous steps a constraint has been broken, go back to step 1, but do not allow ineria to cause a systems constraint. Identify the core problem. what to change? What to change to? And how to cause the change?