Essay on Review for the
1. What are the methods described in The Goal for identifying a bottleneck?
‘A bottleneck is any resource which is equal to or less than the market demand placed on it.’ To find out the bottleneck in the case, they’ve tried different ways.
At first they tried to look at all the resources and compare them with market demand. They believed the one in which demand is greater than capacity is the bottleneck. Soon they found this method was too complicated and time-consuming to execute, not to mention the inaccuracy of data.
Then they figured out that they could talk to expediters to find out the parts most frequently in short supply, which were probably the ones passing through a bottleneck.
Building on this method, …show more content…
There are some limits.
First, their suppliers need to increase the frequency of deliveries and reduce the quantity of each delivery, which will increase delivery cost. Also they may lose certain bargain power to suppliers.
Second, and the most tricky one is the conflict with current cost-calculation model. Reducing batch sized means more set-ups on equipment. Under the current way the cost is calculated, the cost looks as though it’s gone up because of the additional set-ups, though the cost is actually gone down.
5. When designing an operational process from scratch, which process step(s) should be the bottleneck(s)? In different stages, under different strategies, bottleneck changes. It can be machine productivity, material allocation system, or even market demand, etc. But it always is the weakest one in a whole operation cycle. ‘A bottleneck is any resource which is equal to or less than the market demand placed on it.’
6. What are the high-level management messages in this book that you consider to be of value?
There are some take-away about management.
First, find out the goal. When Alex first turned to Jonah, the first question of the scientist who never worked in a factory was ‘what is the goal of the factory?’ The goal is the vision that keeps the whole company aligned. It’s the fundament of any business.
Second, stop to think. People