TheGoal - Luther Setzer OEM 2009 The Goal Executive Summary...

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Luther Setzer OEM 2009 page 1 of 6 The Goal Executive Summary and Questions with Answers Luther Setzer OEM 2009 October 2008
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Luther Setzer OEM 2009 page 2 of 6 Part I -- Executive Summary The problem of production has challenged human beings since they first evolved. Even hunters and gatherers had to do elementary planning to evaluate local resources and ration their prizes to assure they met the basic needs of the tribe. Moreover, gathering these basic commodities from nature -- wild game, fruits, nuts, roots, stems, berries, and so forth -- constituted only the first step of the tribal production process. A primitive division of labor within the tribe created the equivalent of an assembly line on the micro scale with hunters, gatherers, preparers, tribal elders, caretakers, medicinal specialists, etc. Over the millennia, this division of labor continued to specialize and to multiply the range of possible productive occupations. This trend exploded with the advent of new individual freedoms after the American Revolution. The resulting Industrial Revolution greatly swelled the diversity, complexity, and specialization of knowledge needed in the rapidly modernizing society. It resulted in the modern fields of engineering and especially industrial engineering, the study of systems that keep industries humming. Because of their long history of storytelling, humans still show a strong preference for learning through dramatic interpretation. Young people learn moral lessons like the just rewards of industry through stories such as "The Little Red Hen." Such fictional tales of virtue tend not to make their way so much to older generations. A few exceptions exist in novels such as Atlas Shrugged by Ayn Rand, a story which illustrates the role of the mind in man's life. A more recent exception comes in The Goal by Eliyahu Goldratt, a story which illustrates his "Theory of Constraints" dramatically. Goldratt, a consultant by profession, considers himself a philosopher in his own right . His frustrations in the early 1980s in attempting to convey his new theory of production to his clients led him to write The Goal with the help of professional writer Jeff Cox. Goldratt seeks to show, in the form of a novel, how commonly held yet faulty assumptions about ideal production plant behavior, such as using all processing resources to capacity, neglect integrated thinking at a systems level and lead to net profits far short of potential. To borrow the words of Ayn Rand, Goldratt tells the reader, in effect: "Check your premises." By the end of the tale, protagonists and readers alike have profitably done just that. Goldratt cleverly tells the story from a first person point of view of its main protagonist,
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This note was uploaded on 05/12/2010 for the course EIN 6227 taught by Professor Hartman during the Fall '08 term at University of Florida.

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TheGoal - Luther Setzer OEM 2009 The Goal Executive Summary...

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