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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
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Related Questions
Book pdf : https://drive.google.com/file/d/1ojDaUwQu0gxTIn7oJnINvLmeqv5_FMz7/view?usp=drivesdk
Question as in the attached photo from page 218 Question 5
Note: Give full explanation with clear indication to the problem’s aspect. Use information provided in table 7.8 , 7.7
(*) Use the weighted-point evaluation system to cal- culate weighted performance scores for each of the software firms. Would the results change if each dimension had a weight of one-third?
(**) In Chapter 2, we described order qualifiers as per- formance dimensions on which customers demand a minimum level of performance. Basically, if a supplier fails to meet the minimum requirements on any of the qualifiers, that supplier would be eliminated from contention. How would you incorporate the concept of order qualifiers into the weighted-point evaluation system?
arrow_forward
17. Services differ from manufactured products in four ways. Intangibility, Inseparability,
Perishability and
?
A. Homogeneity
B. Heterogeneity
C. Intractability
D. Invisibility
E. None of the above
18. The implications of low volume production include the following except
a) Low unit cost
b) Less systematization
c) Low repetition
d) Each staff performs more of jobs
e) None of the above
arrow_forward
Problem 13-4 (Algo)
There is a 3 percent error rate at a specific point in a production process. If an inspector is placed at this point, all the defects can be
detected and eliminated. The inspector would cost $11 per hour and could inspect units in the process at the current production rate of
52 per hour.
If no inspector is hired and defects are allowed to pass this point, there is a cost of $12 per defective unit to correct the defects later
on.
Assume that the line will operate at the same rate (i.e., the current production rate) regardless of whether the inspector is hired or not.
a. If an inspector is hired, what will be the inspection cost per unit? (Round your answer to 3 decimal places.)
Cost per unit
b. If an inspector is not hired, what will be the defective cost per unit? (Round your answer to 3 decimal places.)
Cost per unit
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Hotel ComplaintsA luxury hotel has been receiving a lot of complaints from guests recently. The manager worries that if these complaints continue, the hotel will start to lose clients. Therefore, you have been hired as a consultant to correct the problem(s). A list of the major complaints by week for the last month is as follows:
Complaint Number of Occurrences
Week 1Error on bill 10Room not ready at check-in 8Room service delivery late 3Longline at check-out 10
Week 2Error on bill 12Noise in hallway 2Longline at check-out…
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The Cause and Effect Diagram for logistic service provider analysis the probability of customer dissatisfaction.
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A luxury hotel has been receiving a lot of complaints from guests recently. The manager worries that if these complaints continue, the hotel will start to lose clients. Therefore, you have been hired as a consultant to correct the problem(s). A list and count of the major complaints by week for the last month is as follows:
Week 1
Error on bill 10
Room not ready at check-in 8
Room service delivery late 3
Long line at check-out 10
Week 2
Error on bill 12
Noise in hallway 2
Long line at check-out 5
Room dirty 10
Week 3
Not enough towels in room 5
Error on bill 7
Room service delivery late 6
Not enough close-up parking 2
Week 4
Room dirty 7
Error on bill 9
Room not ready at check-in 10
Long line at check-in 9
You have decided to use a few of the “Tools of Quality” to present your finding to hotel management. Prepare a report to management that includes the…
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What effects do quality planning have on system output, performance, maintainability, reliability, and functionality?
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IV. The following data represent the number of
dishes that are broken at a restaurant while
loading and unloading the dishwasher. The total
number of dishes washed varies daily. Construct a
p chart for these data. What can you conclude
about the situation? Do you have any
recommendations?
Total Number of dishes
washed
465
425
500
Day
Number of broken
Day
Total Number of dishes
Number of broken
dishes
51
42
washed
465
dishes
39
1
13
14
425
500
500
41
15
16
55
51
4
500
53
47
425
425
425
44
17
18
19
425
425
425
38
44
41
39
41
465
47
20
465
48
500
500
425
465
56
43
46
21
465
500
500
42
10
22
23
47
51
11
12
49
24
465
36
arrow_forward
We know that a Balanced Scorecard is comprised of four components: financial (or stewardship), customer (or stakeholder), internal process, and
organizational capacity (or learning and growth). What would you include in a dashboard for the financial and customer components?
Essay Toolbar navigation.
BIVS
=
111
P
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perform an LCA of a hamburger.
life cycle stages… show how “sub-cycles” spin off of the main hamburger life cycle, I.e. the life cycle for the lettuce; life cycle for the truck that brings the lettuce; life cycle for the metals to produce the truck… to illustrate how large the system can be and WHY you’ll always need to draw boundaries.
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i need help with this one, please. please put this in order. thank you
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Problem 10-6 (Static)
A medical facility does MRIs for sports Injuries. Occasionally, a test yields inconclusive results and must be repeated. Using the
following sample data and n = 200.
Number of retests
1 2
1
2
UCL
LCL
3
2
b. Is the process in control?
4
The process is in control.
O The process is not in control.
0
5
2
SAMPLE
6 7
1 2
Click here for the Excel Data File
a. Determine the upper and lower control limits for the fraction of retests using two-sigma limits. (Do not round intermediate
calculations. Round your final answers to 4 decimal places. Leave no cells blank - be certain to enter "0" wherever required.)
8
9 10 11 12 13
2 7 3 2 1
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Nadia Algar is the overworked IT resource person for herdepartment. In the next round of computer purchases, sheis determined to recommend a vendor who does a betterjob of documenting possible errors in the system andwhose customer service line is more responsive to theneeds of her colleagues. Nadia compiled the followingdata over an eight-week observation period. Assuming40 hours per week, which computer vendor should Nadiapursue?
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Σ
64
6:03 AM Thu Nov 28
|||
=
CASE STUDY 2-2
Performance Management at KS Cleaners
*S Cleaners (KSC) is a small company that
provides several services to its customers:
dry cleaning of clothes, laundry, ironing,
and some clothing repair work. KSC specializes in
low-cost volume, promising that dry cleaning will be
returned to its customers the day after it is turned in.
The charge is $2.25 for each item dry-cleaned; there
is an extra charge for ironing, although ironing is
usually not necessary because the items are placed on
clothes hangers immediately after they are removed
from the dryers. Laundry is $1.50 per item, with an
extra charge for ironing, if desired. Clothing repair,
such as hemming, replacement of buttons and zip-
pers, and so on, is charged by the hour.
In addition to Kevin, the owner and manager,
there are eight employees: two dry cleaners, a seam-
stress, and five general duty employees, who rotate
where they are needed among front counter customer
service and sorting…
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Th3 task is pr0vided in th3 pictur3.
(creat3 a DATA FLOW DIAGRAM for the Creat3 a DATA FLOW DIAGRAM for the CASH RECEIPTS SYSTEM that is pr0vided in the pictur3
I WILL RAT3 TH3 TUT0R H3LPFUL IF ANSW3RED ASAP
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Problem 2: Customer complaints
Each question in this problem (Q5-Q8) consists of a customer complaint. From the options below, indicate which dimension of customer utility each complaint relates to.
Ease of use
Timing
Fit
Convenience
Durability
Location
Affordability
Performance
Reliability
Aesthetics
Question 5
“I had to spend 27 minutes on hold before talking to an agent”.
Question 6
“This car is not fuel efficient at all."
Question 7
“When I needed a restroom in the amusement park, I had to walk almost a mile."
Question 8
“I had this suit tailored for me, but now I realize that the shoulders are too wide."
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Topic tittle: The impact of service quality dimension on customer satisfaction - A study on US-Bangla Airlines
Please do the industry analysis of Airlines
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CASE STUDY
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Now, in an attempt to cut costs and increase speed even further, McDonald franchises have tested remote order taking. It takes an average of 10 seconds for a new car to pull up to…
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Related Questions
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- A luxury hotel has been receiving a lot of complaints from guests recently. The manager worries that if these complaints continue, the hotel will start to lose clients. Therefore, you have been hired as a consultant to correct the problem(s). A list and count of the major complaints by week for the last month is as follows: Week 1 Error on bill 10 Room not ready at check-in 8 Room service delivery late 3 Long line at check-out 10 Week 2 Error on bill 12 Noise in hallway 2 Long line at check-out 5 Room dirty 10 Week 3 Not enough towels in room 5 Error on bill 7 Room service delivery late 6 Not enough close-up parking 2 Week 4 Room dirty 7 Error on bill 9 Room not ready at check-in 10 Long line at check-in 9 You have decided to use a few of the “Tools of Quality” to present your finding to hotel management. Prepare a report to management that includes the…arrow_forwardWhat effects do quality planning have on system output, performance, maintainability, reliability, and functionality?arrow_forwardIV. The following data represent the number of dishes that are broken at a restaurant while loading and unloading the dishwasher. The total number of dishes washed varies daily. Construct a p chart for these data. What can you conclude about the situation? Do you have any recommendations? Total Number of dishes washed 465 425 500 Day Number of broken Day Total Number of dishes Number of broken dishes 51 42 washed 465 dishes 39 1 13 14 425 500 500 41 15 16 55 51 4 500 53 47 425 425 425 44 17 18 19 425 425 425 38 44 41 39 41 465 47 20 465 48 500 500 425 465 56 43 46 21 465 500 500 42 10 22 23 47 51 11 12 49 24 465 36arrow_forward
- We know that a Balanced Scorecard is comprised of four components: financial (or stewardship), customer (or stakeholder), internal process, and organizational capacity (or learning and growth). What would you include in a dashboard for the financial and customer components? Essay Toolbar navigation. BIVS = 111 Parrow_forwardperform an LCA of a hamburger. life cycle stages… show how “sub-cycles” spin off of the main hamburger life cycle, I.e. the life cycle for the lettuce; life cycle for the truck that brings the lettuce; life cycle for the metals to produce the truck… to illustrate how large the system can be and WHY you’ll always need to draw boundaries.arrow_forwardi need help with this one, please. please put this in order. thank youarrow_forward
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Recommended textbooks for you
- Practical Management ScienceOperations ManagementISBN:9781337406659Author:WINSTON, Wayne L.Publisher:Cengage,
Practical Management Science
Operations Management
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:Cengage,