I read a book “The Goal” last weekend. I’m working in Vietnam for almost 3 years. I had not worked as a manager before but I tried to be in Vietnam and then my company result became better day by day.
However, I’m recently feeling that there is lack of something to expand my company. If my company sales increases more, then we all must become busier than now. I convince that if we wouldn’t change the current company things.
What a pity… So, what’s the suitable efficient work style for my company? And someone said too much work over time leads bad sales, why? Nobody didn’t give me agreeable answers.
So, I mean, what could make an absolute efficiency, what company should achieve, what company should confirm everyday.
Nowadays, I just minded it and I’m ordering many things to my company staff sticking question mark on my forehead (of course, I’m also saying sorry in my mind…)
This book is insisting, rebuilding company management to get more profit is a GOAL of company then whole company things should be adapted to total sales, whole things!
As I reading this book, so current my questions could be summarised to “how to measure A part of optimisation could be contributing to company sales”, I realised.
These are memos made while I was reading;
> Old measurements of company:
Net income, return on investment, cashflow
> New measurements of company:
– Throughput -> Ratio to create money through sale.
– Stock -> All money that I invested to purchase the thing which I was going to sell.
– Duties expense -> It is money to spend to change stock into throughput.
> Qualification of the manager could be expressed as practice process like following:
Change what. Changing to what. How to change it.
> Whole company optimization could be expressed as thought process like following:
Step 1 – find limitation conditions.
Step 2 – Decide how to exploit the limitation conditions.
Step 3 – Let all other company things follow the decision of step 2.
Step 4 – Improve the ability of the limitation conditions.
If the limitation conditions dissolves by step 4, step 5 is coming back to step 1.