Scribd
Upload
265 views4 pages

Questions The Goal-1

The document provides a summary of key lessons and concepts from the book "The Goal" by Eliyahu M. Goldratt. It discusses how the plant in the book was initially disorganized with bottlenecks and poor measures, but later improved throughput and performance by focusing on constraints. The concepts of identifying bottlenecks and using throughput as a key performance measure are highlighted. Major lessons included applying the theory of constraints to understand flows, define bottlenecks, and ensure constraints are not limiting the system. Some of these lessons could also apply to service settings by identifying equivalent bottlenecks.

Uploaded by

jlopez698
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOC, PDF, TXT or read online on Scribd
265 views4 pages

Questions The Goal-1

The document provides a summary of key lessons and concepts from the book "The Goal" by Eliyahu M. Goldratt. It discusses how the plant in the book was initially disorganized with bottlenecks and poor measures, but later improved throughput and performance by focusing on constraints. The concepts of identifying bottlenecks and using throughput as a key performance measure are highlighted. Major lessons included applying the theory of constraints to understand flows, define bottlenecks, and ensure constraints are not limiting the system. Some of these lessons could also apply to service settings by identifying equivalent bottlenecks.

Uploaded by

jlopez698
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOC, PDF, TXT or read online on Scribd
You are on page 1/ 4

BSP - BUSINESS SCHOOL SO PAULO

Operations and Supply Chain Management

The Goal

MRIO ESCOTERO

Prof.: Luiz Jos Marques Junior So Paulo May 2011

Book: The Goal, Eliyahu M. Goldratt and Jeff Cox, North River Press, 1992

a) What did the plant look like at the beginning of the book? At the end of the book? Beginning of the book the plant was a mess, organized, lack of communication, several bottlenecks, little leadership. Close to being closed down, given an ultimatum. End of the book the plant was a team working focusing on production throughput, communication, solving problems. Factory was a star in the division.

b) What measures were driving decisions at the beginning of the book? How did the use of those measures lead to poor performance? Used the wrong measures. Beginning - cut costs, reduce wages, increase efficiency focused on making machines work more and workers more. End - Reduce Inventory, Reduce Operating Expense, Increase throughput (eliminate the bottle necks)

c) What performance measure concepts did Jonah suggest? How are those concepts useful? He forces them to answer the questions, understand, resolve, before moving to the next step.

Theory of Constraints . This theory comes into practice in the following 5 steps: 1. Identify the constraint 2. Exploit the constraint (or bottleneck) by keeping it running and maximize its output as much as possible 3. Subordinate. Get everything to run at a pace that keeps up to the bottleneck, to avoid inventory jams. 4. Elevate. Increase the throughput of the constraints no matter the costs since they limit the entire system throughput. 5. Repeat with new constraints. As constraints are improve, new constraints will emerge, repeat with these next.

Book: The Goal, Eliyahu M. Goldratt and Jeff Cox, North River Press, 1992

d) How does The Goal define a bottleneck? Is that term used the same way we define it? How is the bottleneck concept used to drive production control at the plant? Bottlenecks are constraints in a manufacturing process, and how identifying them not only allows for removing them, but also yields a useful tool for measuring and controlling the flow of materials. Bottleneck in one step of the process impacts the entire line and production cycle (so 1 hour at start, adds 1 hour to the entire production line every time it happens). Alex and his team identify the bottlenecks in the book and immediately begin to implement change to speed up capacity. In response to questions about the logic of using outdated technology, Alex's team brought in an old machine they received for free in order to increase the capacity of the NCX-10 machine, one of the two bottlenecks. They also were careful to make sure the bottlenecks were not starved and sitting idle. They also moved quality control to before the bottleneck instead of after the process. At the second bottleneck, the heat-treat, they re-ordered how batches travel through to eliminate less than capacity runs, and outsourced overage to a supplier. By careful observation and manipulation of constraints, Alex and his crew manage to make their plant successful, and in the end Alex is rewarded with a major promotion.

e) Does the story of Herbie remind you of any subjects weve

studied in the course? How do statistical fluctuations and dependent events affect the plants performance? A Statistical fluctuations, dependency limits and opportunities for higher fluctuations. Mapping the process step by step. Relationship of inventory and bottlenecks. Leave capacity idle for the non bottle necks, i.e. before the bottle necks. Automation, such as robot, focus on process where quality is so key that it is hard to duplicate.

Book: The Goal, Eliyahu M. Goldratt and Jeff Cox, North River Press, 1992

f) What are the major operations lessons found in the Goal? Do

any of these lessons apply to a service setting? What things are different in a service setting? Operational measurement link with throughput. Theory of Constraints (TOC), Optimal Production Technology (OPT); basics of understanding the process flow, common definitions, communication among team, 1 person alone cannot perform or resolve, more info and capabilities from team perspective. Service still has bottle necks, such as paper work, errors, system inefficiencies, manual vs. automated processes, people need knowledge (training). Manager should be able to answer: What to change? What to change TO??? How to cause the change?

Mrio Escotero

You might also like