![]() ![]() **The bottleneck of the system determines the throughput of the entire. Instead, switch your mindset to increasing throughput. Many companies focus primarily on decreasing operating expense, which can lead to unproductive behaviors that stifle throughput.Ideally, your activities improve all three at once. Operational expense: all the money the system spends to turn inventory into throughput.Inventory: all the money system has invested in purchasing things it intends to sell. ![]() Throughput: the rate at which the system generates money through sales.Organizations can be measured by 3 metrics: Throughput, Inventory, and Operational Expense. ![]()
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