Gold

Gold Throughout the book, Goldratt raises a number of issues concerning management decisions and key issues that need to be considered. Goldratt emphasizes the fact that the society itself is a source of information where flows and relationships can be applied in the business world i.e. the hiking experience. Furthermore, it encourages managers to use common sense and always consider alternative ways of doing things. Also, managers should be able to identify the need for change. Nevertheless, it is vital to know what to change, what to change to and how to cause the change. However, some of the illustrated points are contradicting conventional business assumptions. Firstly, the flow should be balanced with demand and not capacity. Secondly, It is the actual constraint of the system that will determine the activity that can generate profit and not individual potential. Thirdly, activating a resource and utilizing is not the same thing. Finally, an hour lost at the bottleneck is an hour lost by the system as a whole when the same thing but for a non-bottleneck is not worth considering. Accepting the above anti-conventional assumptions can produce a number of conclusions. Money is a more significant issue for management than efficiency. Also, cost should, constraints, business, decisions, constraint, change, taken, number, money, fully, capacity, assumptions, above, worth, way, thing, system, steps, step, same, profit, order, need, managers, management, lost, issues, identify, however, hour, goldratt, finally, fact, demand, cost, conventional