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        The Goal Is A Book About How To Set Objectives,

1068 words - 4 pages

The Goal is a book about how to set objectives, not only in business but also in life, and reach them. It teaches you how to set attainable goals and through careful and strict application reach them. It also explains how to use operations management with the entire system and looks at the system as a whole. The example that the book uses is on a man named Alex. Alex manages a plant that has been experiencing major backlog and non-productivity problems, and as a result is warned that it will be closed in three months if it does not change it?s ways. A former professor named Jonah tells Alex that he is capable of reaching his goal, which is characterized simply as making money, if he sticks to accounting measures Jonah has put forth and no longer takes part in the traditional ways he has previously used.?The wisdom of Jonah,? is summarized into three critical points or measurements. Jonah?s first measurement is Throughput. Throughput is described as ?the rate at which the system generates money through sales.? In other words if you produce something but it does not sell it is not throughput. Jonah?s second measurement is Inventory. This is described as ?all the money that the system invested in purchasing things which they intend to sell.? Inventory is a critical point because companies found themselves paying more money to employees and for the cost of storing too much inventory. Employees were paid daily to produce inventory and keep track of that inventory. The third measurement Operational expense ?is all the money the system spends in order to turn inventory into throughput.? This means that direct labor was not included in inventory, which was what Alex thought. Jonah?s measurements allowed labor to be part of all three measurements not just inventory or operational expense. Jonah?s measurements looks at the system as a whole and through application of its definitions can produce a balanced plant.One of Alex?s most significant lessons was with the NCX-10 machine. He learned to consider using alternate processes to increase capacity. Eliminating time wasted through idle bottleneck time, process defective parts or process parts that do not contribute to throughput should optimize bottleneck operations. The ?Herbie? concept of bottleneck operations was the major analogy Alex found that allowed him to begin to see Jonah?s accounting principles in reality. The dice and match game that Alex played with the Boy Scout troop gave him a diagram that provided him with data and more understanding of the concepts presented by his professor. He learned from the out come of the experiment that two boys were destined to end up cooking and washing dishes because of the way the system of matches was designed. In addition, when the night-shift worker Mike comes up with a way to increase productivity at one of the major bottleneck areas identified at the plant, Alex immediately recognizes Mike?s innovative ideas and asks him to begin to set them up on the other...

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