“The Goal” paints a vivid pro trail of common difficulties faced in production plants and by production managers everyday. In any company the goal is to make money, however as a production manager that goal becomes your sole responsibility. The entire purpose of a manager is to manage the production jobs in a systematic way. Low production cost at a fraction of the time increases demand which increases profit. This book addresses the fundamental skills needed to run and manage production efficiently. Understanding what works for your company as well as against is the first step in improving production efficiency. As a manager or company head you must evaluate all aspects of your production plan and begin drafting solutions. Eliyahu M. …show more content…
As the story unfolds and its decided that Rogo must solve the production problems or he is out of a job, we start to learn more about Rogo 's family life and how that weighs in on his job. Since moving back home six months ago Rogo 's family was not adjusting well and the plant problems wasn 't allowing Rogo to balance both successfully. Their marriage begins to strain because of the devotion Rogo needs to give to the plant. While in a team meeting Rogo starts to reflect of his life and how he is back at square one is some ways. He thinks back on a conversation he had with a college friend, Jonah. Jonah was a Physicist and in catching up they discussed the production plant and the new implementation of robots on the assembly line. Jonah didn 't agree that the robots increased production efficiency; in this reflection Rogo realized the goal of his company was to make money.
The Next day at work Rogo converses with Lou the plant’s controller about the goal of the plant, Lou agrees they discuss the tools used to tell if a company is making money. Rogo knows he has little time to turn things around, but so much more is needed so he decides he to talk to Jonah again. After finally getting a hold of Jonah, Rogo gets 3 measurements with specific definitions to work out the goal, throughput, inventory, and operational expense. Rogo is left to figure
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Production – Having a good production team can help your business stay up to the task of handling all of your demand needs. Knowing your production costs and the speed your employees can complete a task will help you to figure out how much profit can be made of an item. This can be done by taking in the time factor when working on a particular job and the parts required. The speed and quality of production plays a big factor in the company and keeping it running. Our employees in the business who are in the production department will be the engine room of the business. We would strive to keep them comfortable and provide them with enough down to make sure they are not over worked and stressed, which will give us better quality in
To analyze The Goal, Part 2, I have chosen the second option to analyze a complex value creation system using management concepts. Management is being able to prioritize, making decision and coordinate the entire process effectively and efficiently through others, while utilizing all the resources to achieve the organization objectives and goals. The novel continues as Mr. Rogo seeks for more suggestion from his colleague Jonah to keep the plant operating producing revenue. Mr. Rogo is having some personal issues at the moment, he is having a difficult time managing his family which is probably affecting his professional life and the decision he tries to make regarding in managing Bearington Manufacturing Plant. I would suggest that Mr. Rogo take into consideration the Theory of Constraints (TOC) to assist him in evaluating the production of enhancing the performance of the Plant. According to, Dalton, M. A. (2009). “This is a tool that has been used to help manufacturing operations identify and eliminate bottlenecks. This approach enables innovators to rapidly improve their growth results while gradually creating a culture of continuous innovation improvement.” (p.52).
Choudhari, S. C., Adil, G. K., & Ananthakumar, U. (2012). Exploratory case studies on manufacturing decision areas in the job production system. International Journal of Operations & Production Management, 32
He decides to go to his mother’s house to look for his old contact book to try and track down Jonah. He finally gets a hold of Jonah after talking to many other people. Jonah then gives Rogo 3 measurements with specific definitions to calculate the goal. The conversation gets cut short again and he leaves Rogo to figure out how to define the measurements in terms of his plant.
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.
Back at the plan Alex meets with his plant controller, Lou. Together they brainstorm on how the plant could make money and some new targets that may help them achieve the goal. Alex concludes that they need to make money by improving the following indicators: Net Profit, ROI and Cash Flow But Alex struggle to link these indicators to what is happening on his plant so he decided to seek help from Jonah. The next day at work, Alex remembers to look for Jonah the problem is he doesn’t know how to get in contact with him.
The one and only goal for any company should be to make money. Under the theory of constraints, everything that goes towards achieving that particular goal is productive and everything that doesn’t is unproductive. The first bit of advice Jonah gives to Alex involves the big picture view of what is wrong with the plant. Jonah mentions high inventories and failure to achieve shipping dates as most likely the main problems being faced, and asks Alex multiple questions, without giving answers. This back and forth between Alex and Jonah can be described as the socratic method. This method allows a series of questions to be asked but left up to interpretation, so there is no answer given, but critical thinking is required to find a solution. After this method works to perfection and Alex figures out the answer to these questions, he immediately sets up a meeting with an accountant and they outline what is needed such as increasing net profit, return on investment and cash flow.
When a manager over sees a production process or any other sort of work, a few tactics must be applied to complete the work successfully. One such tactic is finding out the priorities of a firm during a single period of time in order to make the process more productive. This search of priorities is known to be the hardest tasks to do in a production process because it is difficult to tell what the business should give utmost attention to rather than doing haphazard production without proper planning.
This essay will investigate the standard production development processes within the fashion industry and it will also focus on the importance of quality control standards inside these processes. It will moreover discuss supply chain within various market sectors in the fashion industry. Many fashion companies apply the same production development processes local and global and this essay will identify the similarities and differences of each of these stages within the fashion industry.
Production & Operations Management Session 3-2 More on Processes 1 Outline Multi-product, multi-flow process analysis – So far: 1 product, 1 flow – Differing process times, yield issues, machine breakdown Big Takeaway: – Product-mix becomes critical in multiple flows – Implications in capital investment, scaling business, and risk management Calculating capacity when you have – Multiple flows • With the same processing time at each resource • With different processing times at a single resource – Yield issues – Machine Breakdown 2 Measure: Implied Utilization Implied Utilization captures the mismatch between the capacity requested from a resource by demand and the capacity currently available at
Efficiency is the basis of all large production companies. They’re main goal is to be able to produce their product at a fast enough rate, whilst keeping the production costs at a minimum. Companies must take a lot of small factors in mind when it comes to production. Assessment of labour costs, material costs and time is key when it comes to figuring out how to minimize the cost of production. An oversimplified equation to represent efficiency is, Output ÷ Input = Efficiency. In the eyes of a manufacturer, the output would represent their product sale cost and the input would represent the production cost. Every successful production company must realize the importance of efficiency. For example, if you look at a car company and look behind the scenes
The main concern of a production orientated business is to focus primarily on making as many units as possible to minimise costs. Therefore the company will have maximised its profits by reducing its costs. (IMM, 2015)
Operations Management, Edition 9, by Jay Heizer and Barry Render (Heizer & Render, 2008). This book provided a thorough examination of manufacturing operations and productivity and included a multitude of tools, techniques and worked examples that had some relevant to this project.
This study will help the company to identify the contributing factors of the production loss and be able to eliminate it. The company may implement the best option to resolve their problem.
The production concept is established on the basis that consumers prefer low prices and product availability. To apply the production concept, managers focus on low costs, mass distribution and high production competence.