📕 Node [[theory of constraints]]

📄 theory of constraints.md by @forshaper

[[Throughput]]: rate at which the [[system]] generates [[money]] through [[sales]].
[[Inventory]]: all the [[money]] the [[system]] has invested in purchasing things which it intends to sell.
Operational expense: all the money the system spends in order to turn [[inventory]] into [[throughput]].
[[Inventory]] is sellable, [[expense]] is not.
The goal is not to reduce operational expense by itself. The goal is not to improve one measurement in [[isolation]]. The goal is to reduce operational expense and reduce inventory while increasing throughput.
Accumulation of [[diversity]]. [[Dependency]] limits the [[opportunities]] for higher [[variance]].
Whoever is [[moving]] slowest in a ruck governs throughput. "You’re only as fast as your slowest Joe".
Look at the [[system]] as a whole, don’t try to maximize [[local]]ly.
[[Bottleneck]] resource: any resource whose [[capacity]] is equal to or less than the [[demand]] placed on it.
Non-bottleneck [[resourceful]] : Any resource whose capacity is greater than the demand placed on it.
Activating a resource is not the same as utilizing a resource. A resource is utilized when its activation advances toward the Goal.
A [[system]] of [[local]] optima is not an optimal system. (Do not attempt to optimize every resource.)
Anchor inventory to bottlenecks.

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