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Operating above capacity can undermine overall performance from "summary" of The Goal by Eliyahu M. Goldratt,Jeff Cox
Every organization has a limit to its resources, whether it’s machines, manpower, or materials. When a system operates beyond these limits, it creates a ripple effect that disrupts the flow of production. This situation often leads to increased lead times, higher levels of work-in-progress inventory, and a greater likelihood of defects or errors. Imagine a manufacturing plant pushing its machines to run at full throttle. Initially, this might seem beneficial, but as the demand for output exceeds the capability of the equipment, complications arise. Workers become overwhelmed, le...Similar Posts
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