The Goal full assignment

The Goal full assignment - Part 1: Summary of The Goal The...

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Part 1: Summary of The Goal The Goal: A Process of Ongoing Improvement is a novel by Dr. Eliyahu M. Goldratt, originally published in 1984. Dr Eliyahu is the originator of the Theory of Constraints (TOC), Optimized Production Technology, Drum-Buffer-Rope, Critical Chain Project Management (CCPM) and other TOC derived tools. The book starts with narrating pathetic situation in the badly managed manufacturing plant where the managers are surrounded by challenges of imposed by modern day manufacturing plant like ever demanding management that works with bad procedures, overconfidence in technological advancement as a means to increased efficiency; unsatisfied customers because of delay in product delivery. Their jobs are in threat and their family life is full of tension. . The book tells us the story of a plant manager, Alex Rogo. Alex is an industrial engineer with an MBA in charge and manages the injection molding manufacturing part of the plant. Alex is ideal for the job but if he does not learn how to run his plant efficiently, and since the plant is neither productive nor profitable, Alex has three months to show some improvements or the plant will be shut down. 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. Alex’s boss, the Division Vice President, Mr. Peach called a meeting for all plant managers and his staff. At the meeting everybody found out how bad things are and given goals to achieve for the next quarter. While at this meeting, Alex was thinking back on a recent business trip where he ran into an physics professor, Jonah, at the airport. Jonah predicts the problems of high inventories and not meeting shipping dates. He also stated that there is only one goal for all companies, and anything that brings you closer to achieving it is productive and all other things are not productive. Alex made the decision to stay with the company for the last three months and try to make a change and he decided to find Jonah. Jonah explained three terms that will help Alex to run his plant: throughput, inventory and operational expense. Jonah also felt that robots are not necessary in the manufacturing plant that Alex works in because they are neither increasing the productivity nor decreasing the labour costs and expenses. Jonah explains to Alex he needs to define the "Goal" of the manufacturing plant .Jonah also explains to Alex the reason of overabundance of inventory is having too many people working on. He believes excess inventory is caused by excess manpower. He also went on to discuss another concept
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of a plant that it needs to be balanced. That the plant is working all together as a unit to meet the demand of the market and an unbalanced plant leads to layoffs, which in return decreases operational expenses. Meanwhile, his family life was also taking a turn for the worst. The marriage is very
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This note was uploaded on 04/27/2010 for the course GSM 5660 taught by Professor Ahmad during the Spring '10 term at Zhejiang University.

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The Goal full assignment - Part 1: Summary of The Goal The...

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