The Goal Essay

1222 Words Jan 23rd, 2015 5 Pages
Tyler Kerth
Management 521
Report #1

1. Do you feel that the Bearington plant has the right equipment and technology to do the job? Why?

I feel that the Bearington plant’s source of problems and concerns are emerging from a deteriorating equipment, poor management system, and staff that aren’t properly fit for this type of job. In chapter one, as Alex Rogo starts walking through the plant he observes the plant’s equipment was making inexplicable noises. There were outdated lights, computer systems, and an intercom system that could barely be heard over all the sound of the machines. On the other hand, the author was describing the employees as raggedy looking and some were over weight. The master machinist that was in charge of
…show more content…
4. What is the “Goal”? Why does Alex need two sets of measurement: (1) Net profit, ROI, and Cash flow; and (2) Throughput, Inventory, OE?

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.

5. What are those three questions that Jonah asked Alex about the productivity of the robots?

Jonah asks Alex if the robots have increased the amount of products shipped per day. Secondly, he asks if the robots have reduced the plants people expense. Finally, Jonah asks if the robots have decreased the amount of inventory that the plant has.

6. Using the analogy between the hiking and a manufacturing operation, explain the phenomena of “dependent events” and “statistical fluctuations”. Explain what a “balanced

More about The Goal Essay