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Eli Goldratt The Goal Essay

1029 words - 5 pages

Jennifer Purifoy April 30, 2001

Executive Summary for The Goal: A Process of Ongoing Improvement by Eliyahu M. Goldratt
The heart of this story is based around the life of Alex Rogo, Plant Manager for Uniware a division of Unico. After a very upset customer approaches Alex’s boss, Bill Peach, he is given an ultimatum to turn the plant around in three months. Due to the limited amount of time available, there are not many outside tools available such as consultants, surveys, etc. With very few hopes, Alex foresees the inevitable until he remembers his conversation with Jonah, a physicist Alex knew from a previous job. The Goal: It is not until Alex’s job is in jeopardy that he decides to ...view middle of the document...

Balancing a Production Line: Jonah explains to Alex that a plant that is continuously productive in considered inefficient. He further explains that continuous production will result in high absenteeism, poor quality and employee turnover. Based on this, he would need to reduce operational expense and inventory to improve throughput to

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Jennifer Purifoy April 30, 2001 demonstrate a balanced line of production. Jonah leaves him to ponder the understanding of two things: what are the dependent events and statistical fluctuations in his plant. Bottlenecks During a hiking trip with Alex’s son, he produces a game for a few of the kids to demonstrate an ideal balance line of production. He does this by setting up dependents and uses a die to measure the statistical fluctuations. At the end of the game, he concluded that the bottleneck’s speed of production is what determines the speed of the other dependents. Hence, inventory moves very slow because of statistical fluctuations. This would eventually result in huge bottlenecks over time. In the end, this is where Alex begins his search inside the plant. Upon arriving back at work, him and the crew begin their search for the bottlenecks. They identify one of the robots, NCX-10, and the heat treatment area as the source of the bottlenecks. Once identified, they begin their search for solving them. These are the steps they proceeded with to solve the bottleneck issue: NCX-10: • Have two employees dedicated to the setup of the robot — this will help ensure that the machine will be continuously running. • Additionally, these employees take their breaks while the machine is working since they are only needed for setup of the next batch. • Continue use of the older machines that the NCX-10 was supposed to replace. • Do not produce parts for inventory — produce only what is in demand (via an order from a customer). • Produce smaller batches to increase productivity for the whole process. Heat Treatment: • Perform quality control testing before going into the bottleneck. • Hire outside vendors to assist in heat treat. • Produce...

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