27555819 the Goal Final Ppt

8/2/2019 27555819 the Goal Final Ppt

1/21


2/21

By:- Ankit Khator15

Mahesh Chavda

Nelson Rodgrieus Pratik Makhija19

Ritu Singh-

Shonali Shenai

Urvi Mehta - 23


3/21

About the Author

An educator, author, scientist, philosopher & businessleader.

Obtained bachelors & masters degree in the field ofscience and doctrate of philosophy.

He holds a number of patents in the areas frommedical devices to drip irrigation to temperaturesensors.


4/21

He has authored several business novels and nonfiction works such as:

1. Production The Toc Way

2. Its Not Luck

3. Critical Chain4. The Race

5. What Is This Thing Called TOC ?

6. The Haystack Syndrome

7. Necessary But Not Sufficient8. The Choice and many more


5/21

Introduction To The Book THE

GOAL

Its a different type of management book.

It has reached a sale of eight million copies.

This book is in the form of a novel assuspenseful as a thriller and equally fast-paced.

The book is also about global principles ofmanufacturing.


6/21


7/21

Introduction

Story about a young executiveAlex Rogo.

Done his engineering under graduation and an

MBA. Started career in UniCo as project manager and

now works under Bill Peach as plant manager inBearington, his hometown.

Factory produces machined assemblies. Well trained staff led by highly experienced

managers.


8/21

Current scenario

Orders bordering 2 months behind scheduled

delivery date.

20 $ million unsold finished goods inventorylying in ware house.

Facing an increasing cash shortage.

Efficiency heading downward. If no improvement- shutdown.

Deadline- 3 months


9/21

New hope

Running into old physics professor Jonah.

Key identifiers of productivity- decreasing

inventory, reducing expenses and selling moreproduct.

Jonah leaves Alex to ponder upon the concept of

productivity.

What is the GOAL?


10/21

Question left by Jonah: What is the

Goal ? Make product

Increase market share

Produce quality products

Produce efficiently

Hire workers

Support the city, state and national economy Increase stockholder value


11/21

measurements of productivity

The 3 basic measurements of productivity:

Throughput (TP)

Rate at which system generates money through sales.Sales Revenue - Raw material Expense

Inventory (I)

All the money that the system has invested in

purchasing things which it intends to sell Operational Expense (OE)

All the money that the system spends in order to turninventory into throughput


12/21

Hiking with son


13/21


14/21

ALEXS OBSERVATION..

Final throughput is measured by the rate of thelast and slowest operation in the sequence.

Inventory is equal to the length between theleader and the backdoor, which should beminimized.

Operational expense is roughly measured by the

energy expended, which must be conserved. Some resources need to have more capacity than

others, especially towards the end of theoperating sequence.


15/21

Towards improvement

Returns to plant to confirm information.

Introduces bottlenecks and non-bottle necks.

Objective- maintain capacity slightly less thandemand.

6 months lead time to train NCX-10 operators.

Trained operators are leaving the company. Hidden excess capacity.


16/21

Considering alternate processes.

Quality control.

Zero defect. Total plant capacity = Bottleneck capacity

Bottleneck defines plant throughput.

Bottleneck per unit cost =Total plant operating cost

Total production bottleneck hours


17/21

Activating a resource and utilizing a resource arenon- synonymous.

Activatingsimply turning it on. Utilizing - making use and moving towards the

goal.

Material release system.

Reduce batch sizes. Four primary time components include: setup

time, process time, queue time.


18/21

Potential to respond better to demand markets.

Solid profits and decreasing operating costs.


19/21

Alex announces his promotion.

Bob - plant manager

Stacyproduction manager. Removal of tags.

Further market expansion.


20/21

Three fundamental decision

issues Alex and Lou identify three fundamental

decision issues as critical to the success of any

manager:1. Knowing what to change.

2. What to change to.

3. How to cause the change.


21/21

Conclusion Dr. Eliyahu Goldratt states,

Production is the heart of industry.

Industry is the heart of a nationswealth and concluding he hopes that

his book and theories help in

strengthening it.

27555819 the Goal Final Ppt

Documents