PORTABLE La Meta by Eliyahu M. Goldratt reader free ios torrent prewiew
PORTABLE La Meta by Eliyahu M. Goldratt reader free ios torrent prewiewBook description
Book description
Great explanation of the theory of constraints and operations management. Its a business classic- first published in 1984 - but still relevant as it gets at the fundamentals. I almost removed a star for trying to create a fictional story to tell the book in that was badly told/edited. Did we really need the side story about the protagonists marital issues?One of the biggest takeaways from this book is that its incredibly important to set the right goals to manage a complex operation. This sounds obvious and intuitive, however its actually much harder than most people think, and easy to get wrong. It gets down to the question of: is everyone working on the right things. The things that will lead to the business making the most money. Its too easy to find a things that are easily measurable and saying this thing is correlated with our success, so lets focus on it. It sounds like cost accounting fit into that bucket.“What you’re saying is that making an employee work and profiting from that work are two different things.”So how do you set the right goals? Focus on making money! “So this is the goal: To make money by increasing net profit, while simultaneously increasing return on investment, and simultaneously increasing cash flow.”One of the drivers of making money in any business that creates a product is throughput, or how fast a product can be made. The others are costs/operating expenses, and inventory. One of the key concepts of the book is that focusing on throughput rather than costs will yield much better results. “The entire bottleneck concept is not geared to decrease operating expense, it’s focused on increasing throughput.”The bottleneck theory, or the theory of constraints, was very useful to think about. My company produces software and not physical products, but each feature we develop definitely has steps it has to go through: creating the concept, research, spec, design, implementation (backend and client), testing, QA, measure results, analyze them, iterate, etc. Focusing on where the bottlenecks are with that process can help us move faster. And every startup needs to be moving fast - and not just at building - we need to be doing build, measure, learn as fast as we can.A consequence of the bottleneck theory that is useful to keep in mind is that in any system only the bottlenecks should be 100% utilized. Every manager will have a natural tendency to want to utilize all their resources to 100% because that just seems... wasteful if you dont. People should be working full time right? But a system can only run at the speed of the slowest bottleneck, so non-bottlenecks will by definition have spare cycles, and its important to keep them open for the important work and not fill it up with unimportant stuff that will bog them down when you actually need them on the important stuff. Ive seen this happen many times in software. An engineer finishes a project, and the big important project coming from the design team isnt done yet, so he picks up something small in the meantime. The next day that big important project is ready to go, but the engineer only needs one more day to finish this thing he started. And then that day becomes two and then three (because we didnt count QA). And then weve lost 3 days on our most important project for another project that doesnt matter at all. Add that up across a large number of developers, and youve lost a lot of time.The theory of constraints is not limited to manufacturing, as the author shows. In the end, he is advocating it as a method or process of learning. STEP 1. Identify the system’s bottlenecks.STEP 2. Decide how to exploit the bottlenecks. STEP 3. Subordinate everything else to the above decision. STEP 4. Elevate the system’s bottlenecks. STEP 5. If, in a previous step, a bottleneck has been broken go back to step 1.
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