What do the three measurements that lead toward the goal include in their definitions? Efficiency Money Productivity Labor

The three measurements that lead toward the goal in the context of the Theory of Constraints (TOC) include:

Throughput: This is the rate at which an organization generates money through sales after expenses. It's a measure of efficiency and productivity, indicating how effectively the company is using its resources to generate revenue.

Inventory: This includes not only products or stock, but all investments spent for equipment, property, and anything else necessary to the business. It's a measure of the money tied up in the business, which could be used for other purposes if not locked in inventory.

Operating Expense: This is all the money the system spends in order to turn inventory into throughput. It includes fixed costs like leases and payroll that occur regardless of throughput levels. It's a measure of the cost efficiency of the business, showing how much it costs to produce the throughput.

These measurements are all interconnected and influence each other. For instance, increasing throughput might require more inventory or increase operating expenses.