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The Goal Book Report

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The Goal Book Report
1. What are the methods described in The Goal for identifying a bottleneck?
Ans: As described by Jonah in the book “A bottleneck is any resource whose capacity is equal to or less than the demand placed upon it” It was very difficult and complicated to find the bottleneck as the process had too many variables and the process in itself was way too complicated. They tried to compare all the resources they had with the market demand, and if the demand is greater than the capacity they could identify the bottleneck. However, they found that the method was complicated and time consuming. Finally they recognized that the scale has to be changed. They chose throughput as the most important measurement. Where they don’t have …show more content…

Red for bottleneck parts and green for non-bottleneck parts.
f) Outsourcing the work to vendors to ease things

3. Relate the notions of statistical fluctuations and dependent events mentioned in the book to concepts covered during the course. Also explain and relate to course concepts the statement made by Jonah that a factory "balanced with demand" will soon experience bankruptcy.
Ans: Throughput decreases while inventory with operating expenses increases because of statistical fluctuations and dependent events in a balanced plant as there was no reserves. They had no extra capacity to make up for the losses. Every company has bottlenecks and bottlenecks are a must claimed Jonah. To set a perfect balancing model is impossible. The company should focus on balancing the flow with demand rather than concentrating on balancing the capacity with the demand. Additionally the company should also look for continuous improvement.
4. Several times in the book, lot sizes are reduced in order to decrease cycle time. What are the limits to this strategy?
Ans: a) Frequency of the delivery made by the suppliers needs to be increased and the quantity of each delivery should be decreased, which will increase the delivery cost. Additionally bargaining power may be …show more content…

Which suggest that the cost has increased due to increase in the number of set-ups on equipment, whereas the cost is decreased.
5. What about such goals as: improve quality, supplying jobs, producing products, low cost production, produce efficiently, stay on leading edge of technology, high market share?
Ans:
6. What three measures are useful at the operational level to express the goal?
7. What three common financial measures express the goal to "make money"?
8. When designing an operational process from scratch, which process step(s) should be the bottleneck(s)?
9. What are the high-level management messages in this book that you consider to be of value?
Ans: a) The Goal: Most important thing is to dictate and understand the goal of the company. Which will help in setting targets and making decisions on efficiency, effectiveness, productivity. b) Thinking: Just thinking without action is of no use. Ideas should be put into actions and before putting into actions should be

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