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23 Top-Notch Eliyahu M. Goldratt Quotes

Eliyahu M. Goldratt is an Israeli business manager and originator several business techniques and theories. An acclaimed writer and researcher, Goldratt is the writer of various notable works to include business novels, magazines and journals, and the Theory of Constraints Journal. Here is a look at some of the most amazing Eliyahu M. Goldratt quotes ever recorded.

“Activating a resource is like pressing the ON switch of a machine; it runs whether or not there is any benefit to be derived from the work it’s doing.”

“Bob comes into the office with a smear of grease on his white shirt over the bulge of his beer gut, and he’s talking nonstop about what’s going on with the breakdown of the automatic testing machines.”

“Bringing a company closer to its goal. Every action that brings a company closer to its goal is productive.”

“Can I assume that making people work and making money are the same thing?”

“For the ability to answer three simple questions: ‘what to change?’, ‘what to change to?’, and ‘how to cause the change?’ Basically what we are asking for is the most fundamental abilities one would expect from a manager.”

“Henry Ford achieved the highest throughput per worker of any car manufacturing company of his time.”

“His best-selling book, The Goal, has sold over 6 million copies and has been translated into 35 languages. It continues to be required reading in major business schools.”

“I smile and start to count on my fingers: One, people are good. Two, every conflict can be removed. Three, every situation, no matter how complex it initially looks, is exceedingly simple. ”

“If you don’t manufacture a quality product all you’ve got at the end is a bunch of expensive mistakes.”

“Incidentally, common sense is not so common and is the highest praise we give to a chain of logical conclusions.”

“Local efficiencies must be abolished. A focusing process to balance flow must be in place. Ford used direct observation.”

“More importantly, our software worked. I don’t just mean that it didn’t bump, or that it performed according to the written specifications, or that it was efficient in producing reports. It really worked.”

“Putting it precisely, activating a resource and utilizing a resource are not synonymous.”

“Science is simply the method we use to try and postulate a minimum set of assumptions that can explain, through a straightforward logical derivation, the existence of many phenomena of nature.”

“Since the strength of the chain is determined by the weakest link, then the first step to improve an organization must be to identify the weakest link.”

“So this is the goal: To make money by increasing net profit, while simultaneously increasing return on investment, and simultaneously increasing cash flow.”

“The dice represent the capacity of each resource, each bowl; the set of bowls are my dependent events, my stages of production. ”

“The entire bottleneck concept is not geared to decrease operating expense, it’s focused on increasing throughput.”

“They’re measurements which express the goal of making money perfectly well, but which also permit you to develop operational rules for running your plant,” he says. “There are three of them. Their names are throughput, inventory and operational expense.”

“We should be trying to optimize the whole system. Some resources have to have more capacity than others. The ones at the end of the line should have more than the ones at the beginning—sometimes a lot more. Am I right?”

“Well, I don’t. Not absolutely. But adopting “making money’’ as the goal of a manufacturing organization looks like a pretty good assumption. Because, for one thing, there isn’t one item on that list that’s worth a damn if the company isn’t making money. ”

“What you’re saying is that making an employee work and profiting from that work are two different things.”

“While they go get the others, I figure out the details. The system I’ve set up is intended to “process’’ matches. It does this by moving a quantity of match sticks out of their box, and through each of the bowls in succession.”

Eliyahu M. Goldratt discusses standing on the shoulders of giants in this short video segment.

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