Goal_PP1 - Todays Class The Wisdom of Jonah The Goal The...

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Unformatted text preview: Todays Class The Wisdom of Jonah The Goal The Goal and its Process Measurement (ch1-10) Statistical Fluctuations and Dependent Events (ch11-17) Bottleneck Management (ch18-26) (Next Class) Time-based Management (ch27-29) (Next Class) 1 The Goal and its Process Measurement Introduction Whats going wrong in Alexs Factory? The future depends upon our ability to increase productivity . Peach (p.25) What is Productivity ? How does Alex mean by productivity (p.28)?-work is getting done faster, producing more parts (increase in efficiency) How does Jonah define productivity (p.31-32)? Act of bringing a company closer to its goal 2 Nothing comes out the far end when its supposed to. Alex (p.18) Losing money The Goal and its Process Measurement Goal What the goal should be? What is Alexs final decision?-Making money is the goal How would you know whether you are making money? 3 financial measures-profit, ROI, CF 3 What are the process-level measures? (p.60)-throughput-inventory-operational expense The Goal and its Process Measurement Measurement What the goal should be? Throughput : rate that the systems generates money through sales .-- money in Inventory: $ the system has invested in purchasing things which it intends to sell.-- money currently inside the system Operating Expenses : $ the system spends in order to turn inventory into throughput.-- money we need to pay 4 The Goal and its Process Measurement Exercise What the goal should be? How to account for the followings in terms of the three process level measures: (p.74-76) Direct Labor (Operating expense) Indirect Labor (Operating expense) Tooling, machines (Operating expense, inventory) Lubricating oil (Operating expense) Scrap (Lost Operating expense, Solf Inventory) Knowledge (Sell Inventory, cannot sell operating expense) 5 The Goal and its Process...
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Goal_PP1 - Todays Class The Wisdom of Jonah The Goal The...

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