Entropy is a thermodynamic concept that represents chaos and degradation. It occurs naturally in any physical system and will naturally grow (i.e.: become more chaotic) if we don’t do something to arrest its growth. Doing something requires the expenditure of energy, so energy is what counters entropy. We don’t speak of these thermodynamic terms and concepts in everyday language and conversation, but they are at work behind the scenes. We are well advised to remain aware of them and act accordingly or nature will steadily and relentlessly increase the state of chaos in which we exist. [Read more…]

Our simple 3 legged stool model from part 1 will deliver high performance at low cost and risk – i.e.: high productivity. It is important however to keep the legs intact! Doing so requires a bit of investment. In thermodynamic terms we need to put some energy into the system to keep the entropy from growing. That energy is investment in maintenance and the payoff comes in the form of steady, predictable revenues with a high margin for profit. Those words should be music to accountants’ ears. [Read more…]

We all want high productivity – maximum output for the least input, the most blast for our buck! We know that high payback will entail a level of risk, but again, we want to minimize our downside risks and maximize the opportunities that may be available to us. We need practical ways to achieve this. Good Capital Asset Management™ will deliver that – how? Well, here’s a simplified scientific explanation of how that works. [Read more…]