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Get all the key plot points of Eliyahu M. Goldratt and Jeff Cox's The Goal: A Process of Ongoing Improvement on one page. From the creators of SparkNotes.
- This chapter introduces the main character Mr. Alex Rogo, an industrial engineer and an MBA graduate who manages a plant of the UniCo Manufacturing Corporation.
- Alex reflects back back on his travels, finding himself back at the place where he started from. "I’m 38 years old and a crummy plant manager."
- The next morning, Alex rushes to attend a meeting of plant managers at headquarters. In the elevator Alex’s co-worker Nathan Selwin explains why Peach has been behaving so strange lately.
- While at the meeting, Alex remembers running into his old physics professor, Jonah, at the airport. Jonah marvels Alex with his intimate knowledge of how badly Alex’s plant is doing.
Jan 1, 2001 · The book revisits what the goal of a business should be and what is important to measure and control to achieve that goal. Through examples in the main character's personal life and work life, Goldratt explains the weaknesses of traditional cost accounting systems and what's important to track.
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- Introduction to the Goal. In the first chapter of “The Goal: A Process of Ongoing Improvement” by Eliyahu M. Goldratt, we are introduced to the main character, Alex Rogo, who is a plant manager at the UniCo manufacturing plant.
- The Boy Scout Theory. Alex meets with his former physics professor, Jonah, who introduces him to the Theory of Constraints (TOC). According to Jonah, the goal of any organization is to make money, and the way to achieve it is by identifying and eliminating constraints.
- The First Meeting of the Goal. Alex applies the principles of TOC in his plant by focusing on bottleneck machines and improving their efficiency.
- The Measurements. In this chapter, Alex realizes the importance of measuring the right parameters. He challenges the traditional measurements such as efficiency and cost and introduces a new measurement called Throughput.
- Identifying The Problem
- Identifying The Bottlenecks
- Optimizing The Use of Bottlenecks
- Utilizing Your Resources
- Improving Continuously
- The Five Focusing Steps Are
- Final Notes
- 12min Tip
The story centers around Alex Rogo, manager of a factory plant owned by UniCo. His plant is failing and at risk of being shut down. It’s facing a backlog of overdue orders and as a result, the plant is losing the company money. Rogo is also struggling in his private life, since he keeps working long hours to try and fix the problems at the plant. H...
The first step to improving productivity is to find the bottlenecks: where does the process get held up? What’s the weakest link in the chain? Every plant has two types of resources: bottlenecks and non-bottlenecks. The authors say a bottleneck is a “resource whose capacity is equal to or less than the demand placed upon it.” A non-bottleneck, on t...
The capacity of a plant is equal to that of the bottleneck. The bottleneck defines the output of your factory, since the factory can only produce as much as the bottleneck can process. Therefore, the bottleneck should define your production processes. On the flip side, when a bottleneck is not working for a period of time, there are dire outcomes f...
If the production process of a plant is not adjusted to the bottleneck, excess inventory is created. Non-bottlenecks feed parts to the bottlenecks. But since non-bottlenecks, by definition, have excess capacity, and the aim of production is to keep every resource working to its full capacity, there will always be more parts than the bottleneck can ...
Most plants operate on the wrong assumption that capacity and demand need to be balanced first, and then the flow somehow has to be maintained. As the discussion of non-bottlenecks has shown, demand and flow need to be in balance. Keeping every worker at work all the time can actually decrease overall productivity. Traditional performance measures ...
Identify the bottlenecks. What are the weakest links in the chain of your production?Decide how to exploit the bottlenecks. What can be done to improve the efficiency of the bottlenecks?Subordinate everything else to the above decision - focus your production process around the utilization of bottlenecks.Elevate the system’s bottlenecks. Can you buy more machines of the same type, for example?To successfully manage productivity, the weakest link of the production chain needs to be established. Once that has been done, production processes should be adjusted so that they are focused on the bottleneck. Do not be scared of having non-bottlenecks sit idle, since this will actually increase your productivity. Finally, continuously aim at opt...
Try and identify the bottlenecks in your organization. What is the weakest link in your production chain?
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Oct 15, 2018 · Goals: The team’s goal is to ship intermediate parts to a sister plant run by Hilton Smyth – the closest thing to a protagonist we find in the book. Every activity that doesn’t achieve the goal is a waste of time. Only pursue activity that achieves the goal.
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The book goes on to point out the role of bottlenecks (constraints) in a manufacturing process, and how identifying them not only makes it possible to reduce their impact, but also yields a useful tool for measuring and controlling the flow of materials. Alex and his team identify the bottlenecks in their process and immediately begin to ...
