The Goal Chapters 1-12. A Process of Ongoing Improvement Eliyahu M. Goldratt and Jeff Cox. The Goal. Plant Manager Physicist/Production Consultant Division VP of Manufacturing
A Process of Ongoing Improvement
Eliyahu M. Goldratt and Jeff Cox
Division VP of Manufacturing
Plant Production Manager
Production Control Manager
Alex Rogo –
Bill Peach –
Bob Donovan –
Lou ____ -
Stacey Potazenik –
Ralph Nakamura –
City of Bearington – location?
UniCo Corporation Manufacturing Plant –
Pennsylvania, Ohio, Indiana manufacturing town
Introduction: What’s your first impression of the manufacturing plant?
Alex travels to corporate meeting with a bunch of “corporate speak”.
Alex begins daydreaming.
Alex/Jonah Chance Meeting in Airport
Alex – “Robots increased productivity by 36% in one department”
Jonah – “Are plant inventories down?” : No
“Is employee expense less?” : No
“Shipping more product?”: No
Alex – “Must keep robots running to maintain efficiencies”.
Jonah – Then “Inventories must be sky high and orders must be late.”
Alex/Jonah Chance Meeting in Airport – cont.
Jonah – “In your own words, what is productivity.”
Alex – “ Accomplishing your goals”.
Jonah – “Correct, then what is the goal of your company?”
Alex – “To be more productive?” : No
“To produce products?” : No
“To increase market share?”: No
Jonah – “How can you be productive? You don’t know the goal.”
What does Alex determine “The Goal” is?
How do you know you are making money (Alex and Lou)?
To make money!!
Why are each of these important?
How do the “making money” measures translate to the production environment?
What is the common word in all three measurement definitions?
Where do the following fit?
Alex meets Jonah in New York seeking help to determine steps to take in achieving the goal:
Jonah – “Do you run a balanced plant? Do you have any idle workers and is it good or not?”
Alex – “We try to keep all our employees productive”
Jonah – “Impossible to perfectly balance capacity to demand, there even exists a mathematical proof showing if you did, inventories go through the roof?”
Alex – “How’s this possible”
Jonah – “Due to two phenomenon:
The combination of these phenomenon are the issue.”