Top 10 Things to Remember in 10 Years

Found this list in a drawer I was cleaning out, it was from a professor at Indiana University. He gave us this on the last day of class and told us to look back at it in 10 years… Thought I’d keep a record of it here.

1. I = RT (Inventory = Throughput X Flowtime)
2. Flow time Efficiency – Most Flow time is Waiting
3. Variability is the Enemy.
4. Use aggregation to reduce variability.
5. Inventory is a source of flexibility.
6. Long Lines? Variability is too high, or capacity is too low.
7. Bad quality is a sign of variability, fix the problem not the product.
8. Capacity is constrained by the bottleneck.
9. To reduce inventory, find the cause (variability, smoothing, economies of scale).
10. Dr. Schultz does consulting. (Luckily I do too…)