The Goal: A Process of Ongoing Improvement by Eliyahu M. Goldratt Essay

The beginning of the book starts off with Alex Rogos make up having major problems and his node gets on his case intimately it. His boss, Peach, tells him he has iii months to fix these problems or they would be shut down. Rogo has to find a way to improve faculty in his plant and he is at a loss of how to do that. He thinks that because the plant has new robots that this automatically improves efficiency, right? Peach calls a special meeting at the headquarters for all the plant managers. Rogo does non know what the meeting is some ahead of time, solely assumes it will be bad news ab off how the divisions performance is horrible this first quarter. Rogo catch up with Nathan Selwin in the parking garage he informs Rogo that if performance isnt improved by the end of the year, whence the whole division goes up for sale. Rogo ends up sledding the meeting early because he realizes that this meeting is pointless and not back up his plant be more productive. A couple weeks bef ore this meeting, Alex had track down into an old friend, Jonah, in an airport lounge. He begins telling Jonah just about his plant and the new robots, etc. Jonah does not seem impressed, but asks Alex some important questions such as h Have they rightfully increased productivity at your plant? h Was your plant suitable to ship even wizard more product per day as a result of what happened in the department where you installed the robots? h Did you fire everyone? h Did your inventories go down? Jonahs point was that if inventories have not gone down, employee disbursal was mot reduce, the plant is not selling more products, etc. then the robots have not increased the plants productivity. Jonah tells him that there is only one goal, no matter what the company. Jonah asks Alex what the goal is and Alex does not know. After Alex leaves the meeting, he remembers this conversation with Jonah and it fetchs him think a lot more about the situation his plant is in. The following enabl e a company to make money h cost-effective purchasing h employing good hatful h high technology h producing products h producing quality goods h selling quality products h capturing market share Alex finally figures out what The Goal is (I dont know how it took him so long)to make money (which is caused by being productive). To accomplish the goal of making money, there are three things that hire to be increased simultaneou... ...nning while people are on break the employees should go on break when it is running. h The union is causation problems (the reason why it is not possible at the time). h The mold is available for 585 hours a month, but the demand is greater than that - it will not be resourceful if you loose any of those hours. h Throughput for entire plant is lower if that time is lost. h Bottleneck 2 is the heat-treat h The applied science department is unwilling to change currently, the plant does not outsource to another(prenominal) vendors h The plant thinks tha t it would increase the cost-per-part. For example Each product shipped is about $1,000. 1,000 units * $1,000 = $1 million if parts get shipped as finished products. They need to use external heat-treat (outsource). Also, quality inspection is currently done introductory to final assembly. Defective items are lost time on tightness because it went through the machine and now is worthless. They need to do QC before block - that way, they will not loose time on bottlenecks on any defective parts - wont loose throughput. Also, they need to make sure the procedure controls on bottleneck parts are very good. The Goal By Eliyahu M. Goldratt