The Goal Eli Goldratt Summary Essay

2711 Words Jul 6th, 2010 11 Pages
The Goal: A Process of on – going Improvement (Summary)
Alex Rogo is the plant manager of Unico’s Bearington plant. Clearly he has problems in his plant as is evident in the surprise visit he got from the vice – president of his division, Bill Peach. Peach came to expedite an order (No. 41427), which he wanted to be shipped that day. Alex is given three months to turn around his unprofitable plant or else face a shut – down.
The order is shipped at the end of the day, although there was a breakdown of a machine and the plant operated beneath efficiency. All workers were pulled from other jobs just to work on a single order. Some even had to carry machine parts by hand to the point of assembly. Alex is concerned that his plant does not
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Alex finds that statistical fluctuations always average out when they occur in dependent events because the last event to occur always makes up for the time differential.
Alex finds out, through a game he invented which involved rolling of dice and acquiring matchsticks as a reward, that when trying to achieve a balanced plant, throughput went down, inventory went up and operational expense associated with the cost of carrying inventory will go up too.
When they were returning from the camping trip, with his new knowledge of statistical fluctuations and dependent variables, Alex puts the slowest child at the beginning of the queue and removed some of the items in his bag that slowed him down. This way, he is able to walk faster and he determines the pace of the other boys.
Alex tries to explain the concept of statistical fluctuations to his team. He used an example that when fulfilling an order, human beings cannot be consistent with the number they produce but will speed up their pace when they are lagging behind, while on the other hand, machines can are consistent because they are programmed that way. The team seems uninterested, but Alex proves his point to them because they missed shipping the order as he said they would because the people feeding parts to the robots could not work at the same pace with the robot that was working at the rate of 25 parts

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