Location via proxy:   [ UP ]  
[Report a bug]   [Manage cookies]                
Scribd Logo
Upload

Welcome to Scribd!

  • 35 views

    Book Review: The Goal: Presented by

    Uploaded by

    Anand Rajaram
    The document provides a book review of "The Goal" which discusses principles of manufacturing and improving organizational productivity. It summarizes the story of Alex Rogo, who is tasked with improving his factory's performance. Key points identified are focusing on the overall goal of increasing profit, identifying bottlenecks, improving quality control before bottlenecks, and implementing the Theory of Constraints approach to manage bottlenecks and improve throughput. The book provides lessons on continuous improvement, considering the system as a whole, learning from everyday activities, and gaining employee approval before implementing changes.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPTX, PDF, TXT or read online from Scribd

    Book Review: The Goal: Presented by

    Uploaded by

    Anand Rajaram
    35 views22 pages
    The document provides a book review of "The Goal" which discusses principles of manufacturing and improving organizational productivity. It summarizes the story of Alex Rogo, who is tasked with improving his factory's performance. Key points identified are focusing on the overall goal of increasing profit, identifying bottlenecks, improving quality control before bottlenecks, and implementing the Theory of Constraints approach to manage bottlenecks and improve throughput. The book provides lessons on continuous improvement, considering the system as a whole, learning from everyday activities, and gaining employee approval before implementing changes.

    Original Title

    GOAL BOOK REVIEW

    Copyright

    © Attribution Non-Commercial (BY-NC)

    Available Formats

    PPTX, PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    The document provides a book review of "The Goal" which discusses principles of manufacturing and improving organizational productivity. It summarizes the story of Alex Rogo, who is tasked with improving his factory's performance. Key points identified are focusing on the overall goal of increasing profit, identifying bottlenecks, improving quality control before bottlenecks, and implementing the Theory of Constraints approach to manage bottlenecks and improve throughput. The book provides lessons on continuous improvement, considering the system as a whole, learning from everyday activities, and gaining employee approval before implementing changes.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    35 views22 pages

    Book Review: The Goal: Presented by

    Uploaded by

    Anand Rajaram
    The document provides a book review of "The Goal" which discusses principles of manufacturing and improving organizational productivity. It summarizes the story of Alex Rogo, who is tasked with improving his factory's performance. Key points identified are focusing on the overall goal of increasing profit, identifying bottlenecks, improving quality control before bottlenecks, and implementing the Theory of Constraints approach to manage bottlenecks and improve throughput. The book provides lessons on continuous improvement, considering the system as a whole, learning from everyday activities, and gaining employee approval before implementing changes.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    You are on page 1of 22

    BOOK REVIEW: THE GOAL

    PRESENTED BY
    R.ANAND (155)
    RATIK KHURANA (161)
    S.AKHIL (87)
    SAGAR SHARMA (15)
    SHASHWAT JAIN (133)
    INTRODUCTION
    • New global principles of manufacturing.
    • Basic principles, that can be used to solve major
    problems, are often overlooked.
    • Provides major insights into
    1. Improvement of organizational productivity
    2. Reducing bottlenecks and WIP inventory
    3. Improving customer satisfaction
    4. Bringing back the romance in a strained
    relationship
    • Focuses on identifying the one particular
    objective for which all the other operations
    are being performed, i.e., THE GOAL.
    THE STORY
    • Alex Rogo: Plant Manager of UniCo’s plant in
    Bearington
    • Manages injection moulding manufacturing
    plant.
    • Industrial Engineer with an MBA.
    • Factory produces machined assemblies.
    • Latest technology with well trained staff and
    highly experienced managers.
    CONCERNS
    • Given 3 months deadline by the management.
    • Fierce competition.
    • Orders nearly 2 months behind scheduled
    delivery dates.
    • Falling revenues
    • Customer complaints
    • Marital problems
    IDENTIFYING THE GOAL
    • Market share
    • Productivity
    • Efficiency
    • Cost cutting
    • Employment generation
    • Quality
    • Sales
    THE GOAL
    • To make money by increasing net profit , while
    simultaneously increasing ROI and cash flow.
    • Any action that takes us towards the goal is
    productive while any action that takes us away
    from it is non-productive.
    • Net profit: Absolute measurement
    • ROI: Relative measurement
    • Cash Flow: Measurement of survival
    MEASUREMENTS OF PRODUCTIVITY

    • Throughput: The rate at which the system


    generates money through sales.
    • Inventory: All the money that the system has
    invested in purchasing things which it intends
    to sell.
    • Operational Expense: All the money the
    system spends in order to turn inventory into
    throughput
    DEPENDENT EVENTS AND STATISTICAL
    FLUCTUATIONS
    • Dependent events: Any subsequent event
    depends on the events prior to it.

    • Statistical Fluctuations: Related to information


    we can not precisely predict.
    HIKING THROUGH THE WILDERNESS

    • Instead of averaging out of fluctuations, there


    is an accumulation of fluctuations.
    • Mostly it is an accumulation of slowness.
    • Final throughput is measured by the rate of
    the last and slowest operation in the
    sequence.
    • Inventory is equal to the length between the
    leader and the backdoor.
    • Operational expense is roughly measured by
    the energy expended.
    • Some resources need to have more capacity
    than others, especially towards the end of the
    operating sequence.
    RESOURCE DIFFERENTIATION
    • Bottle-necks: Any resource whose capacity is equal
    to or less than the demand placed upon it.
    • Non-bottlenecks: any resource whose capacity is
    greater than the demand placed upon it.
    • Throughput of a whole system is determined by the
    bottlenecks.
    • With a balanced plant due to "statistical fluctuations"
    and "dependent events“, throughput goes down and
    inventory along with operating expenses goes up.
    • Capacities at bottlenecks need to be increased
    as the sequence of operations can’t be
    changed.
    • Not viable as increasing the capacities would
    incur more costs.
    STEPS IMPLEMENTED
    • Identifying the bottlenecks: NCX-10 and heat
    treatment furnaces.
    • Quality controls prior to the bottlenecks.
    • Old machines brought back to work.
    • Dedicated foremen and operators at each
    bottleneck.
    • Tagging system put in place.
    • Material release system: triggers release of
    bottleneck material only at the rate at which
    the bottlenecks need it, rather than being
    triggered by non-bottleneck idle time in order
    to counter the problem of shortages of non-
    bottleneck parts occurring in addition to the
    bottleneck parts.
    • Reduction in batch sizes.
    • Setup Time: Time the part spends waiting for a
    resource, while it is being prepared to work on it.
    • Process Time: Time the part spends being modified
    into a new product.
    • Queue time: Time the part spends in line for a
    resource while the resource is busy working on the
    part in front of it.
    • Wait time: Time the part waits, not for the resource
    but for another part so they can be assembled
    together.
    THEORY OF CONSTRAINTS
    • For an organization to have an ongoing
    process of improvement, it needs to answer
    three fundamental questions:
    1. What to change?
    2. To what to change?
    3. How to cause the change
    FOCUSING STEPS OF TOC
    1. Identify the constraint
    2. Exploit the constraint (or bottleneck) by keeping it
    running and maximize its output as much as possible
    3. Subordinate. Get everything to run at a pace that keeps
    up to the bottleneck, to avoid inventory jams.
    4. Elevate. Increase the throughput of the constraints no
    matter the costs since they limit the entire system
    throughput.
    5. Repeat with new constraints. As constraints are improve,
    new constraints will emerge, repeat with these next.
    • Alex comes up with some questions of his own
    1. What to change?
    2. What to change to?
    3. How to cause the change?
    • Answering these questions are the keys to
    management.
    • Skills needed to answer them are the keys to a
    good manager.
    LEARNINGS
    • Continuous improvement is the key.
    • Concentrate on the system as a whole instead
    of individual processes.
    • A lot can be learnt from everyday activities.
    • Problem simulation can help in the learning
    process.
    • All the employees must approve the decision
    before it has been implemented.
    • Small changes may make a big difference.
    • Brainstorming definitely brings up new ideas.
    • Start dating your wife once again in order to
    bring her back home.
    THANK YOU

    You might also like