Essay On The Goal By Goldratt

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The theory of constraints says that the only way performance of the system can be improved is through improvements in the bottleneck machine C.You can see why Theory of constraints thinking has been picked up in strategy and marketing since the constraint can lie in the market or in the approach to the market.] The Goal is set in a manufacturing plant and this makes it easy to envisage the constraint more clearly than in a service based business.Imagine you have four machines in the production line and every product must pass through each machine in sequence.Two stories are interlocked in our hero, plant manager Alex Rogo’s life: 1.How he can save his struggling plant from closure because performance was so bad. His crumbling marriage – because he was pouring so much of himself into saving the business, his personal life was suffering.According to Eliyahu Goldratt and The Goal, the only performance measures that matter are: 1.The throughput – effectively defined as sales less material costs 2. Inventory – money tied up in the system The Goal is to make money and you do that by increasing throughput, decreasing operating expenses and inventory or some combination of all three.Improving machine A and increasing output to 250 units per hour by investing in robotics is an illusion.In this case it will just build up work in progress in front of machine B and if that is speeded up to its maximum, more builds up in front of machine C.I took it into work on Monday morning and gave it my operations director who read it that night.By am on the Tuesday morning, we were in my office discussing how The Goal and the theory of constraints could be put to work in our business.


Comments Essay On The Goal By Goldratt

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