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Theory Of Constraints: The Key To Better Decisions with Dr. Alan Barnard

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How Do We Lose Capacity?

The biggest loss of capacity is when we produce stuff that's not needed now or may never be needed. The same is true in a manufacturing environment, right? You have a one process that says you know my minimum batch is a thousand tons. Even though the market only needs 200, it makes me efficient when I'm doing a thousand. And secondly, like it's not about just squeezing more by adding more resources. It's designing a bottle neck and making sure upstream and downstream you have enough protective capacity to ensure that the work is just flowing through that bottle neck.

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