The Goal- Summary

1371 WordsFeb 14, 20086 Pages
The book tells us the story of a plant manager, Alex Rogo, who is trying to save his plant, at least show some improvements within 90 days to keep it open. Alex 's primary problem is that his plant can not consistently get a quality product out of the plant on time at the cost that can beat the competition. His plant is losing money and if he cannot make it profitable, the management eventually will decide to close the plant. In his fight to save his plant, a physician, Jonah, helps him in achieving his objectives. 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.…show more content…
In the book, the concept of "constraint" is clearly explained by an example. Alex takes a group of boy scouts on an overnight hike. The slowest boy in the group, Herbie, exemplifies all the characteristics of a constraint. Because he is very slow, it becomes very difficult for Alex to keep the boys in line. Boys in front of Herbie hike faster than the other boys. Herbie being a constraint causes large gaps between the boys in the line. This hiking trip helps Alex discover some simple processes. He uses his findings to turn his plant in the right direction. This example also explains the concepts of dependable events and statistical fluctuations. Statistical fluctuations imply that most of the factors critical to running a plant successfully cannot be determined precisely ahead of time. In a system with dependable events, like an assembly line in a plant, if a process lags behind all the process slows down. This explains the high level of inventories piled up in front of the NCX-10 machine and the heat-treat in his plant. Although a non-bottleneck process can produce at full capacity, throughput of the whole system will depend on the capacity of the bottleneck processes of the system. If bottleneck processes lag behind the non-bottleneck processes then higher work-in-process and excess inventories will pile up. He finds that the throughput of the
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