The Goal is a book by Eliyahu Goldratt which is set in a manufacturing environment and describes the method and thinking employed to successfully run the business.
Throughput is the rate at which a business generates profit through sales.
Inventory is all the money invested in the system to produce the products that the enterprise intends to sell. The inventory has to be converted to throughput. In the book, the tools, the machinery and the whole plant were inventory.
Operating expense is the amount spent in converting the inventory into throughput.
Jonah defines bottleneck as any resource whose capacity is either less than or equal to the demand placed on it. The NCX-10 machine is the bottleneck in the plant and this is identified using the
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Total Quality management is when every aspect of a company strives to achieve customer satisfaction and meet their needs. It is a continual process that ensures that defects and wastage are reduced. It is a combination of quality and management tools that enable a company to optimise production and reduce losses. Quality means providing products and services that meet the requirements of the customers and satisfies their needs. It aims at continuous improvement with the involvement of the employees, departments throughout the company at a low cost. It focuses on the way the tasks are achieved, and it emphasises on the role of each in the company. It stresses on teamwork, advocates proactive improvement from within and involvement of all functional teams. The impetus for implementing TQM is improved customer relations, global interaction, better processes and better products. In my personal life, I have seen TQM at work during my experience at Infosys. At Infosys, we kept the customer needs at the forefront and continuously tested our applications to remove any defects or bugs. We proactively sought to make our applications robust and free of error. Transparency is the key to quality that is followed throughout Infosys. The smallest of codes was made to go through different stages of testing and review which were performed by different teams located at different locations. All the teams worked together, and it was everyone's responsibility not just the responsibility of the developer to ensure the product delivered was of highest quality. To ensure that the quality is induced at the earliest stages of product development, the engineers are made to go through rigorous training and are also well versed in the company and customer policies. The regular audits ensured that the process is followed at all levels by all employees. Innovation is welcomed and encouraged. Achieving total quality is a