He is not even sure what productivity is, so he decides to bail out at lunch to head back to the plant. Back at the meeting, Alex hears talk about measurements of efficiencies, productivity, and cost per price, etc.
Jonah tells him to think about it and leaves. Alex cannot even determine the goal of his company at this point. He asks Alex what productivity is and ends up explaining true productivity is accomplishing something in terms of your goal. Jonah continues the conversation and admits that he has been studying manufacturing processes.
Just the one department is producing 36% more. Jonah then asks if the plant is making 36% more money because the plant is using robots? Well, of course not is the response. Alex answers that there is a 36% improvement in one area. Jonah asks how much productivity has improved because of the use of the robots. His topic is “Robotics: Solution for the 80’s to America’s Productivity Crisis.†Alex tells Jonah that his plant has more robots than any other plant in the division. Alex and Jonah start talking, and Alex mentions he is going to speak at a seminar. While waiting for in between flights at O’Hare, Alex wandered into an airport and found himself sitting next to the physicist named Jonah who worked on mathematical models while he was an undergraduate engineering student. After the meeting Alex reaches for something and comes across a cigar he received from a chance encounter from and old physicist he knew from his college days. A few days later, Alex hears more of the same at a corporate meeting and figures out why Bill was upset. Bill also says that if the plant does not turn around in the next three months, he will make a recommendation to close the plant. Bill tells Alex that production has gone down in the six months that Alex has been at the helms, and an irate customer, Bucky Burnside, has an order that is fifty-six days overdue, and Alex must get that order shipped before anything else. After Alex puts out all of the fires that Bill had set, they sit down in Alex’s office and talk. The story begins when Alex’s supervisor, Bill Peach, comes into the plant and nearly turns everything upside down. UniCo is definitely a manufacturing plant, what they manufacture, I still do not know. The plant is located in Bearington Massachusetts, where Alex grew up. We find Alex six months into his first plant managers position at UniCo, in the UniWare Division. The story is about a plant manager named Alex Rogo. Goldratt, is the story of a man who at his crossroads, and what direction he decides to take. This is an indication that elevators become the bottlenecks in the process that transports students from the ground floor to the floors where the classrooms are.Ī summary of the book: The Goal by Eliyahu M.
(Not the examples from the book, not artificial examples!)Įxample: During the 20-30 minute period before the beginning of classes at university, there are long lines that form in front of the elevators. How does “The Goal” define a bottleneck resource? Develop your own simple example of a bottleneck to demonstrate. If you were Alex and had covered the concepts that you did this term, what would you have done differently?Ħ. Explain how the emphasis on cost efficiencies contributed to the plant’s problems.ĥ. What efforts were made to increase flow through the bottlenecks?Ĥ. Which two plant areas were the original bottlenecks? What were the other constraints that emerged?ģ. After reading “The Goal,” please submit a 2-3 page write-up (11 pt, 1.5 line spacing, 1 inch margins on each side, always cite) with answers to the following questions:Ģ.
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