The Goal: A Process of Ongoing Improvement by Eliyahu M. Goldratt :: essays research papers

The Goal A Process of Ongoing Improvement by Eliyahu M. GoldrattThe heart of this story is based near the life of Alex Rogo, Plant Manager forUniw be a division of Unico. after a very upset customer approaches Alexs boss,Bill Peach, he is given an ultimatum to bring out the plant around in three months. Dueto the limited amount of time available, there are non many outside tools availablesuch(prenominal) as consultants, surveys, etc. With very few hopes, Alex foresees theinevitable until he remembers his conversation with Jonah, a physicist Alex knewfrom a previous job.The GoalIt is not until Alexs job is in jeopardy that he decides to devour into hisconversation with Jonah. During the conversation, Jonah asks him severalquestions to analyze his companys situation. The conversation leads ultimatelyto the question, "What is the goal of any business?" After rethinking hisconversation, Alex realizes that the goal of any business is to make bullion.Furthermore, if the goal is to make money any action toward this goal is considerproductive and any action not moving towards the goal is nonproductive. Alexunsure of such a simple answer decides to contact Jonah to continue the searchfor more answers.MeasurementsOnce Alex contacts Jonah they correct the following beats to define thesuccess of any plants production1. Throughout = rate that the system is used to generate money throughsales.This measurement would consist of what a product would be worth whensold at market value after deducting operational expense and inventory.2. Inventory = all the money invested in purchasing items that will be sold.This could include the remains of their machines after being used towardthe investment.3. Operational expense = all the money used to offer inventory intothroughput.This would include such items as depreciation of a machine, lubricatingoil, scraps, etc.Balancing a Production LineJonah explains to Alex that a plant that is infinitely productive in consideredine fficient. He further explains that continuous production will result in highabsenteeism, poor quality and employee turnover. Based on this, he would needto reduce operational expense and inventory to improve throughput todemonstrate a balanced seam of production. Jonah leaves him to ponder theunderstanding of two things what are the dependent events and statisticalfluctuations in his plant.BottlenecksDuring a hiking trip with Alexs son, he produces a game for a few of the kids todemonstrate an ideal balance line of production. He does this by setting updependents and uses a die to measure the statistical fluctuations. At the end ofthe game, he concluded that the bottlenecks recreate of production is what