Eliyahu Goldratt’s The Goal: A Process of Ongoing Improvement is a management oriented novel who writes about a manager named Alex Rogo. Alex faces a lot of problems from a production plant that interferes to keep the plant stable. Also he faces the negative potential of the plant closing down and goes through pressure to lay off employees. Alex Rogo works many long hours at the production plant, which creates a problem for his personal life because he does not have much time at home to spend with his wife. She feels as if Alex is neglecting her, therefore Alex needs to make life determining decisions between his personal life and the production plant. It seems like a very stressful situation for Alex because he is pressured from home and also …show more content…
While Alex Rogo is trying to improve the plant, he meets one of his formal physics professor. This is where the formal physics professor gives advice and guidance into improving the production and operations for the plant. This book is very similar to the overall purpose of Business 348 Operations Management where there are formulas and theories used to improve business decisions and how to become an effective manager in business. The first day of my class during operations management, my professor, Professor. Lee first thought the class that “operations management is the set of activities that create value in the form of goods and services.” It is transformed by having inputs that produce outputs, which is also stated in the novel as for the basic essentials in operations management. Alex’s position is pretty much an operations …show more content…
In the novel, Jonah doesn’t quite get answer every single question Alex has but Jonah leads Alex to understand answers to his questions by making him figure it out with critical thinking. According to Alex, the goal of the production plant is mainly productivity. Jonah’s questions makes Alex really think about the actual goal of the production plant by trying to understand the question given by Jonah. This is where Alex realizes the actual goal for the plant is to make money by increasing net profits. This must be done at the same time, or simultaneously by increasing a return on investment and also simultaneously increasing the cash flows. Alex faces many problems that actually benefit him by determining solutions to the next problem when Jonah utilizes him to think critically. This is where Jonah teaches Alex the advantages and answers to his dilemma by teaching Alex inventory, throughput, and operational expenses. Throughput is used in a production process where it measures the amount of materials that goes through the process. In business throughput is related to how investments can make returns, sales create revenue, and spending can create
In order to succeed in any business we have to be aware of operations management. It is considered as the most important part of the company; it is the part which is responsible for producing goods and providing services. After all, operating
The next morning he meets up with Jonah in the hotel in New York. They begin to talk about the goal and the problems at the plant again. The next two figures that Jonah tells him about are statistical fluctuations and dependent events. He explains how these affect his plant the runs out of
In Chapter 1 of Eliyahu Goldratt’s book The Goal, we are introduced to Alex Rogo a mere plant manager, whom going into work that early morning is already faced with issues. While the reading continues we are introduced to a group of frustrated characters including, Dempsey, Ray, Martinez, and an hourly worker Tony. Bill Peach the vice president of this plant has decided to come in early causing a ruckus in the plant. Peach is frustrated because customer order 41427 is late and decided to take matters into his own hands, by threatening Tony's job in which he has no power of doing so. Rogo now has to face the problem and handle it himself. As the chapter continues we see many different types of writing in the workplace mentioned and how it is utilized. Chapter 1 of The Goal shows us how purchase orders, grievance forms, and efficiencies are relevant in the workplace.
One more time, Jonah explained Alex another concept. Jonah explained, “A bottleneck is any resource whose capacity is equal to or less than the demand placed upon it. A non-bottleneck is any resource whose capacity is greater than the demand placed on it”. Alex with the help of his team could identify the bottleneck in the plant and organized the
A main driver towards the understanding of where the plant when wrong was to realize that the methods used for measurement towards productivity were obsolete. The company was in need of financial measurement for two different reasons. One is control; knowing to what extent a company is achieving its goal of making money. The other reason is to create measurements which should induce the parts to do what is good for the organization as a while. It eventually focused on the above goal in order to keep the successful track record Alex implemented to continue.
This leads Alex and his team to come up with the theory of constraints. A theory, which used properly, will let any manager utilize all of Jonah’s concepts correctly and in theory make the company profitable. The theory is broken down into five steps: “1. IDENTIFY the system’s constraint(s). 2 Decide how to EXPLOIT the system’s constraint(s). 3.SUBORDINATE everything else to the above decision. 4. ELEVATE the system’s constraint(s). 5. WARNING!!! If in the previous steps a constraint has been broken, go back to step 1, but do not allow INERTIA to cause a system’s constraint” (Cox & Goldratt 307).
The Goal is a very compelling novel. Novel, HUH!! Who ever heard of a novel about a production plant? Well, Eli has made the production managers have quite an epiphany. In one book he might have changed the whole world of cost accounting. Eli approached the production world with a
Alex, with the help of Jonah, finds that the goal of a manufacturing organization and all organizations in general is to make money. Jonah explains the measurements which express the goal of making money in a different way.
The operations management can be defined as the systematic processes which convert inputs in to finished goods or service by adding the value. The operations management is very important in modern days as the competitiveness among the businesses very high. Therefore most of the organizations do have a special functional unit for manage the operational activities of
Operations management is in regard to all operations within the organization responsible for creating goods and services that organizations pass to their customers. This function is at the heart of all organizations, giving the means of achieving their aims and reason for their existence. These activities include: managing purchases, inventory control, quality control, storage and logistics. A great deal of focus in operations is on efficiency and effectiveness of such a process.
Operations Management involves the management of the whole framework that creates a good or delivers an item. It includes making processes more proficient and successful. Productive and successful procedures permit associations to build quality and decrease cost while keeping up or enhancing net revenues. One of the hardest choices to be made is which portions of the
This leads to Alex getting in contact with an old professor, whom may be able to help. The professor teaches Alex about “The Theory of Constraints”, which is the main foundation that ultimately helps Alex save the company.
Operations strategy is not an aspect of operations management that is explicitly expressed throughout the article. Operations strategy refers to the way that firms use their resources to be able to support their long-term competitive strategy (SOURCE). In the context of the article,
Operations management refers to the management of all activities directly involved in the creation of goods/services through the conversion of inputs into output. It consists of the following process capacity planning, forecasting, inventory management, buying and maintaining material, quality assurance, motivation of employees, scheduling, and making decision on where to allocate facilities. The four functions of management include operations, marketing and finance.
Operations management is found everywhere. We encounter various goods and services produced by the transformation of inputs to outputs under the control of operations managers. Operations is a basic function along with finance and marketing. Through excellent operations wealth can be created, productivity improved and standard of living raised.