The Goal The purpose of the author writing The Goal was to recall his experience of having the task of fixing his plant, he is a plant manager at a manufacturing company. The author presents the reader with an idea of the problem that the plant is incurring and he uses fundamentals of business to see if he can find a solution to these problems before he and the rest of his plant finds himself unemployed. While doing this, he finds the flaws within the plant and how the mindset of keeping things even isn't what makes a manufacturing company thrive like other companies due to things like inventory cost and cost goods sold that not all business structures are influenced by, by setting forth different methods of production he wants to fix the …show more content…
At the beginning, Alex is confronted by his division vice president giving him the obligation to meet a certain about of improvement or his plant and the rest of the division would be shut down. After some time and reaching out to his former professor from college he comes up with strategies to try and fix the businesses detriment. After setting forth strategies he's able to improve the plant's production significantly although do to the production of the two other plants within his division he gets the notion that it was already predetermined that the division would be terminated. As he goes in to make his claim on why they shouldn’t eradicate the division, to his astonishment he shows up to work to find that he has now been given the whole division, promoted to vice president of the division and would be in charge of increasing profits for three plants. He would get a team together and implement his strategies that he came up with while fixing his plant, he would then lead that division to becoming the most profitable division for the entire company ultimately being the 'trojan horse' for the business by the end of the …show more content…
For a manufacturing company to be successful it is actually a burden for them to try and stay balanced due to the overwhelming cost of inventory which although is considered an asset it’s a liability on the business until those goods are sold and or used in a way beneficial to the business, therefore you must only keep enough inventory for the time period for which these actions are incurred. One other thing within the book that really stuck out to me was a part within the book where Alex was trying to decide whether or not it'd be a good to take and offer from a potential European client, while doing this he knew that although it was exponentially lower in price than what he usually gets for his products from local buyers he depicted that this would get in the European market place. That being said, I think this is a good idea but there are more aspects of that before jumping into a deal like this you must take into consideration for you to truly know if its profitable and also find out if his product will be desirable in
Family owned paper company, New England Paper Tube (NEPT), was facing bankruptcy and was on a verge of being shut down after over 100 years of service. Bill Kirby was sent to the rescue. He was a career banker for over 15 years and knew exactly what this company needed to do to turn their business around. They started of by figuring out why the company was not making any profit and actually losing money. The following were some of the reasons: new technology was introduced, foreign competition, domestic recession, and the product was being sold for way less than it cost to make. Things started to turn around when Kirby invested some money in the company and they decided to make the product that they had comparative advantage
The company is weakened mainly by its lack of technological advancement in every area of production. For example, if the company chose to modify their equipment to produce their “Atherley” model as well, it would be able to lower production costs of this model, in turn increasing the profits of this model further. In addition, the Atherley Furniture Company greatest threat is the decreased market for their “Parkdale” model. The “Parkdale” model has the most time consuming and costly production. With lack of a market for this model, the company stands to continue to lose profits. In conclusion, if the company wishes to continue to operate their chair division profitably as well as efficiently, the above issues need to be addressed and corrected.
Hinrichs’s active management of change within the factory and focus on worker satisfaction and buy-in resulted in a lot of small victories that he used to win over the workforce’s trust and respect. In the process, Hinrichs transformed the plant from one that was resistant to change to one that embraced and was excited for change.
In the case of Mendel Paper Company which produces four basic paper products lines at one of its plants: computer paper, napkins, place mats, and poster board. Although the plant superintendent, Marlene Herbert is pleases with increased sales he is also concerned about the costs. The superintendent is concerned with the high fixed cost of production, the increases in fixed overhead and even variable overhead. He feels that the production of place mat should be discontinued. His reason for the discontinuation is that the special printing is driving up the variable overhead to the point where the company may not find it profitable to continue with the line. After reviewing the future predictions of the
One of the valued but demanding customer, who had considered Engstrom as a certified supplier, was requesting a large order but Engstrom was unable to deliver on time due to the low productivity problem. The plant manager along with his assistant were already dealing with the troubling numbers when this happened. While the task was a tough bone and not easy to tackle, and there were a lot of factors needed to be taken in to consideration. The leadership started to analyze and break down the main causations other than the overall economic trend that dragged the company into the turmoil, as it turned out, it was the low, frustrated employee morale and diminished work satisfaction.
At this point the factory is operating at a capacity like never before. They have been shipping a record number of orders in a record amount of time. All of the orders past the shipping date have been completed and shipped. They are now shipping current orders on-time and early in in some cases. Now that the plat is responding better to market demands, Alex can focus on sales throughput, and gets the division sales manager, Johnny Jons, to market his plant's improved capacity. Together they manage to tie down a major contract
The story begins with outlining the problems Alex Rogo is facing. His plant is incredibly
If Parkland wants to achieve the aggressive growth that the board desires his ability to improve the capabilities and the operations of the company will be one of his greatest barriers. Due to the affluent nature of the customers and the possible variety in the product Parkland should focus on improving the company’s organizational capabilities. A new plant will eventually be needed but that decision can be delayed if Charles can streamline its operations. Parkland needs to institute policies that will measure productivity and develop an accurate method of forecasting sales. This will result in lower inventory carrying costs, fewer out of stock issues, and fewer backorders that need to be filled. If Charles can reduce the number of back orders and out-of-stock products it can focus on a single product line at a time which will reduce the frequency of expensive switching costs.
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).
The Goal by Eliyahu M. Goldratt describes the story of plant manager Alex Rogo, who must make his factory profitable to keep UniCo from shutting down the plant. In his journey to discover the optimal way to run the factory, Rogo learns the ideas of determining the company’s main goal and continuous improvement are key to managing a successful factory. These two ideals can be applied to intercollegiate athletics, specifically to the Sun Devil Athletics marketing department. The primary theme from The Goal is identifying the organization’s main goal or purpose and to make all decisions as a way to reach the main goal. All employees must realize the one main goal and understand of their actions relate to the organization.
The four issues stated above were identified in this case analysis as being some of the key contributors to some of the troubles Dick Spencer has experienced while learning how to become an effective manager. With the use of research this paper will show that if these four areas were addressed differently Dick Spencer’s outcome and experience in the plant could have been much different.
My goal as an educator is to receive a Master of Science in Education with a Concentration in Inclusion Education. Even though I do not hold an undergraduate degree in Education, this is where my life path has taken me. Being an educator without an education degree has taught me how to help students learn by thinking outside the box. I currently have a Bachelor of Science in Organizational Communication. I am an Instructor. I am knowledgeable in areas of training using effective communication skills. I am able to explain to others the process and steps it takes to produce a positive outcome.
Given three months to turn the plant around, Alex turns to Jonah, his old college physics professor who has become a manufacturing consultant, and enlists his help. Jonah has a unique and potentially risky approach to addressing the problems at the plant. First, he takes what can be a complicated
Forefront Wood Products is a producer of high quality wooden door-sets based in China. The company faces significant operations issues resulting from its processes and culture. As a consequence, the company struggles to be profitable. Forefront’s parent company, The Forefront Holding plans an initial public offering (IPO) in 2007. To solve all the problems and to prepare the company for the upcoming IPO, Forefront hired a new operations manager with the task to turn the factory around. During his first weeks on the job, the new operations manager found many serious problems in the manufacturing facilities, production processes, and within the workforce mentality. In addition, Forefront had significant problems with high
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