Circle of Performance: Business System

Business System
Objective
Maximize Business Performance
from Operations. (Net Profit & ROI
or T/OE & T/I)

Business System
Business Strategy Outcomes
Provide customers what they need, We experience delays in
when they need it, while lowering movement; increased WIP; longer,
the overall cost of delivery and less reliable lead times; delayed
improving ROI. delivery; more expediting; more
costs"

!"#$%&#'(#)*#+,-./'01234,'
4-56'/#+73+8)2$#'.,'4-)9'.9'
.,:'4-)9'2##*,'93'$-)2;#'93'
,.;2.<$)29(5'.8/+3&#'.9:')2*'
-34'93'3+$-#,9+)9#'9-#'
$-)2;#='
!
!"#$!%&"%'"&("')*(&+,*")$!&"%)'"-,!.,')"
/%&.0"
Business
Operational Functional Actions
Strategy Production releases work/work
Operate with full resource orders in a manner that will keep all
utilization selling highly profitable resources producing.
products.
Functional
Measurements,
Understandings,
Decision Support
(Ex. Production)
! Production performance
measures include fully utilizing all
resources (high efficiencies).
! Production understands that
fully utilizing all resources (high
efficiencies) requires available
work.
! Production has access to
production schedules to release
work/work orders in a manner that
will keep all resources producing.

Copyright © 2014, Avraham Y. Goldratt Institute, LP. All Rights Reserved.