OF THE MANY insights that stand out in Eli Goldratt’s book, “The Goal,” one of the most memorable is the plant manager’s frustration with a machine operator reading a newspaper while on the clock. Like most of us, the plant manager thought that working harder or faster would naturally generate more money for the business. That’s pretty straight forward, right?
Not according to Goldratt. He makes it clear that running an operation at 100 percent rated capacity is not the objective. He reminds us that making money is the “Goal” of being in business. Goldratt’s “Theory of Constraints” teaches that you might actually make more money and offer faster ship dates when operators—who are not constrained—turn off their equipment. Perhaps, the only challenge greater than believing such a radical insight is to have the real-time information and frontline leadership necessary to act upon it.