Brief Read \"The Goal\" by Goldratt and Cox. The Goal is a book by Eliyahu Goldr

Question

Brief

Read "The Goal" by Goldratt and Cox. The Goal is a book by Eliyahu Goldratt that deals with the problems a production manager faces when running a factory. The lessons can be applied not only to manufacturing but to the production processes of service facilities as well.

Provide a structured report which addresses the following questions:

The first half of your assignment is to write a short introduction detailing what you learned from the book as well as what you thought of it. This is to be your own work, not a compilation of sources from textbooks or the Internet.

Discuss the instances in The Goal where Alex, Alex’s team, or Jonah used Throughput, Inventory, and Operation Expense (T, I, and OE), either explicitly or by implication, to assess the viability of decisions.  

If an existing measure used by management was shown (through the use of T,I,OE) to be giving misleading information discuss the measure and why it was failing.

For each instance of the usage of T,I,OE that you identify briefly discuss which constraint (capacity, market demand, supply, or policy) was being worked on at the time and which step of the process of improvement (i.e. five step or three step or both) the usage of T,I,OE helped to unblock.

The second half of your assignment is to discuss how you see the principles raised in The Goal applied or misapplied to your co-op work experiences. This part of the project will also entail writing 3 to 5 pages in your report.

Explanation / Answer

The material is being “released” to the plant just to keep the non-bottleneck machines busy. This improves these machines efficiency measures but does not help the goal

T makes more money today & in the future Alex Rogue decided to go for measures that have to be taken for achieving his goal.

Trouped= (Sales-Total Variable Cost)

Net Profit= (Trouped- Operating Expense)

Approaches are very much statistical & close to reality. Every plant has two phenomenons. :) Dependent events, Statistical fluctuations

What is the biggest take away from the book and why?

Through the methodological approach on measurement of various factors. Associating with driving business, the book covers various aspects of identifying bottle neck & non value added activities that incurs UN wanted cost in business. How to make steady flow of cash & get returns on investment in much better way is clearly explained in statistical & methodological way

Major steps in Theory of Constraints (TOC)

Thus measuring the constraints and work on it revise and make it steady & stabilise will create a huge positive impact on overall business process.

What are the three primary measures Alex Rogue learned and applied to his plant?

T makes more money today and in the future Alex Rogue decided to go for measures that have to be taken for achieving his goal.

Trouped= (Sales-Total Variable Cost)

Net Profit= (Trouped- Operating Expense)

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