The book report

.docx

School

Baruch College, CUNY *

*We aren’t endorsed by this school

Course

OPM 3000

Subject

Business

Date

Apr 3, 2024

Type

docx

Pages

4

Uploaded by GeneralPencil12944

Report
The Goal A Process of Ongoing Improvement Book Report OPM 3000 Professor: Jose Santiago 1
The Goal by Eliyahu Goldratt is a story about a manager of UniCo manufacturing plant named Alex Rogo, who got a warning about losing his position from his boss Peach Bill because his plant is losing money by not delivering the products that consumers want and there is no improvement which is lead the plant a permanent loss. One of the customer's big orders is (41427) the UniCo can’t make shipment on time because of missing pieces which shows lagging production. Also, all employees are working very hard even though they are working overtime to fulfill this order. From this scenario, delays, and overtime costs put a company at risk when the plant is unable to generate money. However, Alex got three months for plant improvement and Alex is very overwhelmed with his plant and can’t find a problem which is why his plant is losing money and can’t make any money then he seeks help from his school math teacher named Jonah who helped him to save his plant. This book mostly focuses on the key concept of manufacturing: finding a solution through the bottleneck. Eliyahu demonstrated an understanding of principles and how they could bring order to the chaos that so often exists. For an organization, if they understand the real concept and can apply that appropriately, then they could compete with any. This book also showed how a manager is most important for a business's success and teaches managers how they could lead the manufacturing facility. In a general way, the goal is to achieve something, and specifically, for a business, the goal is to make money by increasing net profit while decreasing inventory and expenses costs. The company should identify its business goal to succeed. According to The Goal book , “The goal of a manufacturing organization is to make money, and everything else they do is meant to achieve the goal” (Eliyahu-65). Differently, “The goal is to increase net profit, while simultaneously increasing both ROI and cash flow, and that’s the equivalent of saying the goal is to make money” (Eliyahu-66). This means that one demonstration is equivalent to another. Also needs to discover measurements that express the goal of making money and developing the operational rules for running the manufacturing organization well. For a business, there are three measurements: Throughput, inventory, and operational expense. However, the goal is to increase throughput while simultaneously reducing both inventory and operating expenses. The bottleneck is a resource whose capacity is equal to or less than the demand placed upon it and no bottleneck could be any resource whose capacity would be greater than the demand placed on it. In The Goal Book Alex, Jonah, and his team found the two original bottlenecks in his plant areas that are NCX-10 and Heat Treat which are the stages of the production line where the process is stopped. Moreover, Jonah suggests that Alex needs to use these constraints by letting the machine run itself while the employees are taking lunch breaks instead of letting that idle time. The other constraints emerged when Alex’s team bought an old machine that they had for expanding the NCX-10’s ability. Every business has a bottleneck in the process and the great idea is to manage the processing system based on the bottleneck. For a business having a bottleneck is not good and is not bad but make needs to be used properly. However, in the book, Alex and his team found out their plant’s bottleneck and used an idea from the hiking slow kid (Herbie) to improve them. Alex and his team made a list of all the orders and flag them as red and green tags. Red reparents the orders that need to be done immediately which would be the priority to work on and not hold bottleneck machines. The green tag represents the orders that could work on after finishing the red tag which represents no bottleneck. According to the Goal Book, Alex’s team came up with focusing steps, at first, every business should determine constraints on the system. Secondly, choosing how to maximize the limitation. Then improve and raise the constraints; lastly, if the limitation was violated then go back to the beginning. Cost efficiency is one of the most broadly used terms for all organizations which is an act of saving money. The book demonstrates why a focus on cost efficiency causes all of the plant’s problems 2
Your preview ends here
Eager to read complete document? Join bartleby learn and gain access to the full version
  • Access to all documents
  • Unlimited textbook solutions
  • 24/7 expert homework help