Goal Paper 16 to 30

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1. Why did Jonah suggest “balance the flow with demand” instead of “balance capacity with demand”? How does Jonah define "bottleneck resource"? Is bottleneck a bad thing to have? How did Alex identify the bottleneck resources in his plant? Why was he not able to compare the demand with the capacity to determine bottlenecks? Jonah suggested “balance the flow with demand” instead of “balance capacity with demand” because capacity of the plant is equal to the capacity of its bottlenecks and it would make flow through bottlenecks a little less than the market’s demand. Jonah defines “bottleneck resource” as “any resource whose capacity is equal to or less than the demand placed upon it.” Bottlenecks are neither bad nor good; they just are…show more content…
Throughput can only go as fast as the bottleneck, therefore non-bottleneck resources should only be producing at the bottleneck rates even if that means that there is idle time. 3. What did Jonah suggest to deal with the two bottlenecks that Alex and his managers discovered? How did Jonah calculate the value of a "bottleneck part"? Jonah suggests to: first ensure the bottlenecks’ time isn’t wasted. If the bottleneck is sitting idle or processing defective parts, the bottleneck’s time is wasted. Also, Jonah suggests making the bottlenecks work on production with will help today’s throughput. Jonah calculates the value of a “bottleneck part” by computing the total expense of the system and dividing it by the number of hours the bottleneck produces. 4. Based on Jonah’s discussion in Chapter 19, provide examples of why the “efficiency” mindset could lead to negative effects. Identify a corporate policy (not from Goal) that you believe may be the bottleneck for making improvement? Based on Jonah’s discussion in Chapter 19, we can see that the “efficiency” mindset could lead to negative effects. Examples of this include when Jonah suggests the plant use their old machinery because isolated the new machine works at a faster pace, but it takes six months to train a staff member to use the new machine. Focusing on the efficiency of one machine may not make the production process as a whole better and more efficient. An example
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