Essay on Summary of The Goal

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Summary of The Goal

Alex Rogo is manager for one of UniCo's production plants. Recently Alex's plant, as well as the others in his division, have been having major problems shipping orders on time. The company has considered closing the plant and has given Alex only three months to make a significant improvement or the plant will be closed and he as well as all of his employees will be without a job. At this point everything seems to be crashing down around him while at a meeting, discussing the future of the division, he recalls a chance encounter with an old acquaintance, a physicist named Jonah. During their discussion Alex discovers that Jonah is currently involved in the science of manufacturing organizations. Intrigued Alex
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The bottlenecks are the areas (machines) in the plant that are constantly holding back the production of the finished product. The philosophy behind this will become clear in a moment.
Philosophy of Ongoing Improvement Since the beginning of the industrial revolution manufacturing organizations have followed the rules that idle time is lost time. That the only way to make money is to keep everyone and everything operating at 100 percent. When in fact a plant that runs it's resources at 100 percent all the time is actually a very inefficient plant. Most of the time the struggle to meet efficiencies is taking the organization further away from it's goal. Excess production creates excess inventories that in turn ties up money and slows down or impedes cash flows. The key to balancing production is to search out those places in the plant that slows down all the processes behind it, essentially a bottleneck. Obviously the bottleneck can't just be removed so the rest of the process must be governed by the speed at which the bottlenecks can operate. Release of materials must be staggered so that just as a batch is sent through the bottleneck another batch is waiting in front of it to be processed. No other non-bottleneck area can be allowed to operate faster than the bottlenecks can handle otherwise the inventories will begin to climb again. In order

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