Late Night Discussions

Dr. Eliyahu M. Goldratt


Level of TOC knowledge acquired:



71 pages

Designed for:

Academics, Consultants, Executives, Implementers, Managers and Students









The following is an excerpt from…

Late Night Discussions on the Theory of Constraints

By Eliyahu M. Goldratt

Compliments of North River Press

Late Night Discussion: Number 1

How to block your own distribution channels - a discussion on the automotive industry

"Proximity is not just a matter of geography," I mutter as if to myself, but this time I succeed in triggering a reaction.

"Yes, you\'re definitely right," Jonah replies and leans forward to stir the ashes from his bulky cigar, "and those who choose to ignore it are paying very dearly."

Before the thick carpet of silence once again engulfs us, I hurriedly throw out the first cliché that comes to mind, "the Japanese." Lately it seems as if this always stirs up the conversation.

It doesn\'t fail. "Alex," Jonah asks me, "why do we tend to point to the people who do the logical things and not to the ones who stubbornly refuse to recognize the changing nature of reality?"

But this time I feel that my Israeli friend has gone a little too far. "We haven\'t lost yet," I say in somewhat hurt voice. This Japanese stuff is a double-edged sword, especially when you talk with foreigners.

"Hey, come down from your high horse." Jonah is smiling at me. "I don\'t relate to the hocus-pocus of cycles in global economy and the such. I\'m just alluding to a much more practical day-to-day behavior that we see all around us in our industries."

This doesn\'t help much, I\'m still irritated. "Would you care to elaborate?" I inquire stiffly of my Israeli friend.

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Learning points

  • What is the right place to hold the inventories.
  • Why do we ignore the decisive fact that the inventories that we push on the dealers cause us to be unable to respond to the market needs?
  • How to have some positive impact on sales.

Table of Contents

Late Night Discussions 1

How to block your own distribution channels a discussion on the automotive industry.

Late Night Discussions 2

How to turn an excellent solution into a disaster a discussion on single source vendor.

Late Night Discussions 3

How to go from one ditch into another a discussion on automation.

Late Night Discussions 4

How to throw out the baby with the bath water a discussion on automation.

Late Night Discussions 5

How to run from one excuse to another a discussion on Japanese success

Light Night Discussions 7

How to perfect devastating and long term lead times a discussion on project engineering.

Late Night Discussions 8

The paradigm shift in material management.

Late Night Discussions 9

How companies behave in a market downturn a discussion on market segmentation, part 1.

Late Night Discussions 10

How the notion of product price kills companies market segmentation, part 2.

Late Night Discussions 11

How erroneous policies and measurements can kill a friendship a discussion on human behavior in organizations.

Late Night Discussions 12

Where did product cost and profit come from a discussion on cost accounting.