“Chains”

(excerpted from The Pipeline)

 

“If a chain – it’s purpose, strength, value, weight, cost, weakest link, etc. – is a fair analogy of our production system, RB Builders would never have more than one constraint to better performance”, said the intrepid, results-based consultant.  “But – our production system would always have to have at least one constraint;  otherwise, it would have unlimited production capacity, and we know that’s not the case.

“In reality, RB Builders might have more than one constraint, because we have more than one chain of dependencies”, she said.  “There are external, market-related constraints, there are internal, production-related constraints.  There are constraints to higher margins, there are constraints to higher productivity.  There are constraints on capital.

“But – any and all of these chains, with their own weak-and-weakest links, are part of the overall system.  In some way, they are what determine our capacity and capability to improve performance – to improve what we do, how we do it, and what we accomplish.

“The particular chain that is RB Builders’ production system”, she continued, “is focused on generating as much Throughput as possible, within the parameters established by a planned, controlled, and finite level of capital, resources, and capacity.  So – within the limitations imposed by a planned, controlled, and finite level of capital, resources, and capacity – RB Builders’ production system is focused on whatever limits production.

“At any point in time, RB Builders will have very few internal, production-type constraints, very few things that really limit the rate at which we can generate additional Throughput – and, thereby, generate cash flow, make a profit, and produce a return on our owners’ investment.  And – one of those limitations will inevitably prove to be a bigger limitation than any of the others.

“That is where the focus must be, right now.”

 

(The Pipeline: A Picture of Homebuilding Production is available on the publisher website (virtualbookworm.com), through the author website (thepipelinebook.com), as well as amazon.com, barnesandnoble.com, and booksamillion.com)