Theme Of The Book By Alex Rogo

1505 Words7 Pages
Theme of the book: As the name of the book mentions “Goal: ongoing improvement” but it just does not explain the goal and ongoing process to improve the system but also talks about the theory of constraints. Constraints which we face in real life situation. The main character in the book is Alex Rogo who is the manager of manufacturing plant. His plant is one of the few plants which company operates. Alex’s plant was not making enough money to sustain on its own. Orders were getting delayed often and the throughput was reduced which was eventually taking plant towards the financial losses. Management was very upset with the performance of the plant. They would have to shut it down if plant kept loosing money in future. There was a pressure…show more content…
After discussion with Jonah, he ought to think that what exactly he is trying to achieve in his plant. Alex then goes though lot of brainstorming and comes to conclusion that his plant’s goal is to make money. As long as his plant keeps making money for the company, management would not shut it down. Another challenge was how to achieve this “Goal” within the resources and capacity currently available in the plant. At this point when plant is loosing money management would not allow to add more machines or capacity to the plant for the sake of productivity. Alex gets in touch with Jonah and start to learn from him about how to approach this issue. Jonah gives hints to the Alex and he implements those suggestions and he starts to see the results. There are three main components to achieve the goal: 1. Throughput 2. Operational expenses 3. Inventory. Alex figures out that throughput should increase at the same time operational expenses and inventory should decrease in the system in order to make money. When he starts to apply this concept he learns about the new concept called bottlenecks. Bottlenecks are the processes in the system which consumes the most amount of time and have more load than available capacity. So when he adds capacity to the bottlenecks, non-bottlenecks had waiting inventory to be processed. The main challenge here is to achieve the balance between those two processes. He learns
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