The Goal : A Process Of Ongoing Improvement

924 WordsNov 11, 20144 Pages
The novel, “The Goal: A Process of Ongoing Improvement”, by Eliyahu Goldratt focuses on a production plant that has a failing system which can potentially shut down if the system that it operates under does not right itself and show improvements. The book is structured like a business textbook but is written as a novel. “The Goal” uses a scenario in the production world that can occur to any production manager. Eliyahu Goldratt uses the main character, Alex Rogo a plant manager with UniCo Company for the past 15 years, puts him in the students seat. It helps business students learn with Alex and makes it very relative. The scenario begins with Bill Peach, the VP of UniCo, giving Alex an ultimatum of showing improvements in production…show more content…
The following steps need to be taken to improve the performance of a system using the theory of constraints approach; 1. Identify the system constraints. 2. Decide how to exploit the systems constraints. 3. Subordinate everything else to exploit the constraints. 4. Elevate the systems constraints. 5. Once constraints have been addressed go back to step 1. The theory also requires us to answer three basic questions, which are: What to change? What to change to? How to cause the change? Alex with great success utilizes the theory of constraints to come across Bottlenecks in the manufacturing plant. Jonah explained to Alex that bottlenecks are any resources whose capacity is equal to or less then the demand placed upon it. Alex has to identify the bottlenecks in the system and try to eliminate them, which will allow the control of the flow of materials in the system. This will lead to the decrease inventories, decrease operational expenses, and increase the throughput of the whole plant. Alex and his team identified two bottlenecks in the plant. One is the NCX-10 machine and the other is the heat-treat process. There are two things that should be done, they have to make sure that the bottlenecks ' time is not wasted, and make the bottlenecks work only on what will contribute to throughput today. They understood that by using non-bottlenecks for efficiency, they have
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