Blue Inc Machine Case Summary

Given three months to turn the plant around, Alex turns to Jonah, his old college physics professor who has become a manufacturing consultant, and enlists his help. Jonah has a unique and potentially risky approach to addressing the problems at the plant. First, he takes what can be a complicated

Machine hours, direct labor hours, and direct labor costs can all be used to allocate manufacturing overhead.

Alex comes up with the consensus that the “Goal” of his business and many others is to increase net profit while simultaneously increasing return on investment and their cash flow at the plant. This basically means to make money. These three measurements can be achieved by looking closer into his second set of measurements. Alex specifically must find a way to increase throughput while at the same time decreasing it inventory and operational expenses. All three of these measurements must be cautiously monitored since they all rely on each other to be obtained in balance. Factors that cause throughput, inventory, and operational expenses to become unbalanced are excess manpower and balance capacity of the demand of resources in the market.

He decides he needs to find Jonah once again to get some more mentoring. Jonah shares three terms that will help him run his plant: throughput, inventory and operational expense. Everything can be classified under one of these terms. While in the midst of all of this turmoil, the plant had robots that were taking over some of the production jobs. Alex realizes, after his talk with Jonah, that these robots did not help to save money, but in fact increased costs, operational expenses, and were less productive. The robots were implemented, which increased costs to do so, however they did not reduce other costs like direct labor. They shifted labor to other parts of the plant. Now the challenge is how they are going to take care of the robots issue without lowering efficiencies? Alex decides to visit Jonah again. Jonah tells him he has got it all wrong.

Item 5. Approval of warrants and authorization of signatures as per the warrant list. After discussion, there was a motion made by Director McVicar and seconded by Director McClish that the warrant numbers 39722 through 39786 be approved and signatures be authorized. Check number 39521 and 39763 were voided. Director McVicar stated she appreciated that Civiltec Engineering Inc. provided the billing backup as requested. The vote was as follows:

Alex comes up with the consensus that the “Goal” of his business and many others is to increase net profit while simultaneously increasing return on investment and their cash flow at the plant. This basically means to make money. These three measurements can be achieved by looking closer into his second set of measurements. Alex specifically must find a way to increase throughput while at the same time decreasing it inventory and operational expenses. All three of these measurements must be cautiously monitored since they all rely on each other to be obtained in balance. Factors that cause throughput, inventory, and operational expenses to become unbalanced are excess manpower and balance capacity of the demand of resources in the market.

Candidate Hairston was confident and thorough when briefing his order. Although confident and thorough while briefing, Candidate Hairston failed to ask fire team members if they had any questions at the end of his brief. This caused a little confusion, leaving fire team members with unanswered questions. Prior to the execution phase SNC posted security and ensured security was able to hear everything in the event he had to replace a fire team member. During the start execution phase, SNC did not utilize the gear provided and attempted to use his fire team members as a means to traverse the obstacle. For more than two and a half minutes, fire team members were standing around waiting for direction, not progressing towards mission accomplishment,

Tom needs to increase performance and sales of the shop that Alyssa took over. He needs to gain back the customer base that she lost and he has to do it as soon as possible.

Alex stumbles upon his old professor Jonah, who introduced him to the theory of constraint. Jonah states three essential tools of measurement for everything in the plant "Throughput is the rate at which the system generates money through sales."; "Inventory is all the money that the system has invested in purchasing things which it intends to sell"; and "Operational expense is all the money the system spends in order to turn inventory into throughput" (Goldratt & Cox, 1984, pp. 60-61). These new ideas create a puzzle for Alex: What is the goal of Unico manufacturing plant? He keeps wandering and drifting his thought about what the goal of his plant is. After food and beer, it strikes Alex that the ultimate goal is to make money (Goldratt & Cox, 1984, p. 41). In order to make more money for the plant there should be an increase in throughput and a decrease in inventory as well

A question that could be asked in this case is whether or not reducing the minimum quantity if subassemblies would help with the issue at hand. By decreasing the minimum quantity, this would decrease the number of part 3079 that are necessary to complete each subassembly. However, by decreasing any of these items would create a stock out due to customer orders that are already received.

Due to this realization, the next thing he did was to talk to the plant’s accountants to determine how the company can make money. The company will have money if the net profit increased along with the return on

As he rose from his seat to leave, he experienced an epiphany, Mr. Bluestone, the editor-in-chief at the Wrongberight Town Crier, meant to carry through on his threat.

The book The Goal, written by Eliyahu M. Goldratt, is about the manufacturing process and how it works together to achieve the goals of a firm. The Goal is about science and education. It is an attempt to show that we can postulate a very small number of assumptions and utilize them to explain a very large spectrum of industrial phenomena. The Goal is about new global principles of manufacturing and people thinking logically and consistently about their problems and therefore able to determine “cause and effect” relationships between their actions and the results. In the process some of the characters in the book, Alex Rogo - who is the plant manager, Jonah - a physicist and old friend of Alex, Stacey Patazenik – who manages inventory

The goal is a very interesting story. It is more about a plant manager who faces personal and professional challenges. Alex earns a master’s degree in both Engineering and Business Administration. He works as Engineering Manager at UNICO Company, which produces a variety of finished goods for another plant and used as component item. His logical philosophy, family issues, and top management pressure makes him a creative and successful manager in the world of business.

Valerie Wyatt finished her report and rushed into Al Hassler’s office and handed him the report. Hassler slowly scanned the report and then said, “You’ve done a good job here, Val. But now that we have the system operating, I don’t think we should upset the apple cart, do you? Let’s just keep this to ourselves for the time being and perhaps we can correct most of these problems. I’m sure Frank wouldn’t want to hear this kind of stuff. This system is his baby, so maybe we shouldn’t rock the boat with this report.