“[Throughput is the] rate at which the system generates money through sales.”

— Eliyahu M. Goldratt

Source: The Haystack Syndrome (1990), p. 19; as cited by: Gerald P. Marquis (2011) A Framework for Propagating Measures of Performance Throughout Organizations Using Object-oriented Technology., p. 10

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Eliyahu M. Goldratt 10

Israeli physicist and management guru 1947–2011

Eliyahu M. Goldratt (1947–2011) Israeli physicist and management guru

Source: The Haystack Syndrome (1990), p. 29; as cited by: Gerald P. Marquis (2011, p. 10)

“There are three measurements which express the goal of making money perfectly well, but which also permit you to develop operational rules for running your plant. Their names are throughput, inventory and operational expense.”

Eliyahu M. Goldratt (1947–2011) Israeli physicist and management guru

Source: The goal: a process of ongoing improvement (1984), p. 60

“Business – the world's work – is the sale of lies:
Not goods, but trade-marks; and still more and more
In every branch becomes the sale of money.”

John Davidson (1857–1909) Scottish poet

Smith (Glasgow: Wilson, 1888) p. 26

“The first problem I propose to tackle is this: how much of its income should a nation save? To answer this a simple rule is obtained valid under conditions of surprising generality; the rule, which will be further elucidated later, runs as follows.
The rate of saving multiplied by the marginal utility of money should always be equal to the amount by which the total net rate of enjoyment of utility falls short of the maximum possible rate of enjoyment.”

Frank P. Ramsey (1903–1930) British mathematician, philosopher

"A Mathematical Theory of Saving", The Economic Journal, Vol. 38, No. 152 (Dec., 1928)

“Economists have focused too much on the economy’s circulatory system and have neglected to study its digestive tract. Throughput growth means pushing more of the same food through an ever larger digestive tract; development means eating better food and digesting it more thoroughly.”

Herman E. Daly (1938) American economist

Herman E. Daly (2008), as cited in: Ian Jenkins, ‎Roland Schröder (2013). Sustainability in Tourism: A Multidisciplinary Approach. p. 143

“For continued system cohesion, the mean rate of system adaptiation must equal or exceed the mean rate of change of environment.”

Derek Hitchins (1935) British systems engineer

Source: Putting systems to work (1992), p. 63 Cited in: Lars Skyttner (2005) General Systems Theory: Problems, Perspectives, Practice. p. 103

“The purpose of this book is to discuss and present evidence for the general thesis that the flow of energy through a system acts to organize that system.”

Harold J. Morowitz (1927–2016) American biophysicist

Energy Flow in Biology: Biological Organization as a Problem in Thermal Physics (1968), p. 2.
Italics are in the original. Later quoted on the inside front cover of The Last Whole Earth Catalog.

“General systems theory is a series of related definitions, assumptions, and postulates about all levels of systems from atomic particles through atoms, molecules, crystals, viruses, cells, organs, individuals, small groups, societies, planets, solar systems, and galaxies. General behavior systems theory is a subcategory of such theory, dealing with living systems, extending roughly from viruses through societies. A significant fact about living things is that they are open systems, with important inputs and outputs. Laws which apply to them differ from those applying to relatively closed systems.”

James Grier Miller (1916–2002) biologist

Miller (1956) "General behavior systems theory and summary". In: Journal of Counseling Psychology. 3 (2) 120-124. Cited in: Francis Ferguson (1975) Architecture, cities and the systems approach. p. 12

“We assume…that the banking system must be prepared to expand (or contract) the total supply of money to the extent necessary to prevent any scarcity (or plenty) of funds in the capital market which may be induced by any other disturbing factor, from causing a rise (or fall) in interest rates”

James Meade (1907–1995) British economist

James Meade (1951), The theory of international economic policy, Vol. 1, p. 48; as cited in: Jacques Jacobus Polak (2001) The Two Monetary Approaches to the Balance of Payments, p. 13

“General systems theory (in the narrow sense of the term) is a discipline concerned with the general properties and laws of “systems”. A system is defined as a complex of components in interaction, or by some similar proposition. Systems theory tries to develop those principles that apply to systems in general, irrespective of the nature of the system, of their components, and of the relations or “forces” between them. The system components need not even be material, as, for example, in the system analysis of a commercial enterprise where components such as buildings, machines, personnel, money and “good will” of customers enter.”

Ludwig von Bertalanffy (1901–1972) austrian biologist and philosopher

Source: 1960s, Robots, Men and Minds (1967), p. 69

“[Throughput is the] rate at which the system generates money through sales.”

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