Chapter 16 The Goal Sunday evening when they reached home from the camping trip, Julie has gone missing. Chapter Twenty-Four Now that the new priority system is in place for all parts going through the bottlenecks, inventory is decreasing. It turns out that Jonah has been an independent consultant to businesses to help improve their productivity. Chapter Ten After explaining everything, Alex and his staff Bob from production, Lou from accounting and Stacey from inventory control hammered out the meaning of throughput, inventory and operational expense until satisfied. Then he decides he needs to find Jonah. With that, Alex is announced as Bill Peach's replacement as UniWare division manager. It seems as if the bottlenecks will again control the flow, by only sending them exactly what they need and when they need it.
Chapter Twelve This short chapter tries to capture the essence of the problems the job is causing at home with the extra workload. The last event must always catch up everything to average out, which rarely ever happens. Chapter Seventeen Alex tries to portray his new revelation to his team at the plant. The most notable principle used by i2 Technologies is called Closed-Loop Supply Chain Management©. Despite his secret misgivings, Alex promises to achieve it. After the first day it is obvious , they will need them all.
Alex decides to analyze the situation from the perspective of a physicist. Everything is totally into place at the plant but more is needed for division. Another simple example of statistical fluctuations and dependent events at play is in connecting flights. Peach to defend his plant's growth, but the decision has already been made… the plant will continue operations and will not be shut down! Goldratt attacked some of the most basic procedures in manufacturing plants all over the United States and other parts of the world. Another call to Jonah is in order. After a pizza and a six pack of beer it hits him, money.
The true test will be next week. In this essay, I will focus on the business model Goldratt describes. Chapter 37 The Goal As the team reviews the five focusing steps, they discover various issues to be addressed. By the way, the order 41427 does get shipped, but not very efficiently. Everything is totally into place at the plant but more is needed for division.
Mathematical proof exists that when capacity is trimmed to marketing demands, throughput goes down and inventory skyrockets. Chapter Thirty-Four Alex is firmly engrossed with the problems of taking over the division. This average rate should become the nominal rate of progress for the entire troop. Chapter Four While at this meeting, Alex thinks back on a recent business trip where he ran into an old physics professor, Jonah, at the airport. When Goldratt introduced the book it created a minor earthquake in the manufacturing world. This will increase cycle times and hence the sales team can promise to fulfill new orders after four weeks, twice as long as before. Work-in-process bottleneck costs are not appropriately measurable by using standard material and labor component cost elements.
In order to overhaul the plant, Alex contacts his former professor, Jonah. Dependent Events An event , or a series of events, that must take place before another can begin. Who ever heard of a novel about a production plant? Could a new bottleneck have emerged as a result of overtaxing the rest of the system? Chapter Twenty-One The crew works out some of the details for keeping the bottlenecks constantly busy. Thus, smaller batches become a key factor in their ability to increase sales. He also explains correlations that determine the success of the business.
The Journal of Chemical Physics. Instead, he met with their underlings. Many processes rely on the previous one to be able to complete the next. Then promise to ship 250 each week for four weeks starting in two weeks. Chapter Twelve This short chapter tries to capture the essence of the problems the job is causing at home with the extra workload.
This second prediction, which is inconsistent with the real world, is obtained using an anti-causal assumption. Suddenly it strikes him that the Goal of his company is to make money! Chapter Thirty-Five The second day they are led in a discussion about the periodic table of elements, and how the scientists actually got a table of any sort. What if I were to say that this troop of boys is analogous to a manufacturing system. Of course, this will take some doing with vendors, but if it can be done, nearly all costs are cut in half. Smyth, the division productivity manager and competing plant manager, sets out to identify what Alex is doing to his plant by initiating an internal audit. In fact, the story includes many personal drama elements.
He pushes all the employees to work extra hours and somehow, order 41427 finally gets shipped late that night. How do they further improve throughput? But this time, Alex decides to let the slowest kid named Herbie lead the line. However, further investigation showed that only 75% of the parts truly required the special treatment. Jonah posits that each and every activity that occurs in the plant should be measured by one metric: does that activity advance the company toward its goal. The measure that increases is inventory, because the factory produces parts that cannot be assembled into finished goods until the area of lowest capacity produces enough parts. Alex finds out that there is a market order to fill the capacity. It also has been discovered that they have been using the bottlenecks to produce fictitious orders in an effort to keep the bottlenecks busy.