The Goal By Eliyahu Goldratt Max Questions and Answers 2023 Complete
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The Goal By Eliyahu Goldratt
The Goal By Eliyahu Goldratt Max Questions and Answers 2023 Complete
main character
alex rogo
company
unico
problem
everything is late, working on overtime,not making money
Peach
division vice president
alex's job
plant manager
how long does the division have to improve
1 year
how lo...
the goal by eliyahu goldratt max questions and ans
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The Goal By Eliyahu Goldratt Max Questions and
Answers 2023 Complete
main character
alex rogo
company
unico
problem
everything is late, working on overtime,not making money
Peach
division vice president
alex's job
plant manager
how long does the division have to improve
1 year
how long does the plant have to improve
3 months
Jonah
old physics professor, consultant
what does jonah tell alex during the first meeting at the airport
-productiviy is meaningless unless you know a goal
-preducts the high inventories and late orders
-tell alex to not think like everyone else
what does alex decide the goal is?
TO MAKE MONEY----not to fill warehouses full of inventory
what is the absolute measurement ? relative measurement?
net profit needs to increase (absolute) along with increasing ROI...return on
investment... and cash flow (relative)
throughput
the rate at which the system generates money through SALES...money coming in
inventory
the money that the system has invested in purchasing things which it intends to sell
operational expense
all the money the system spends in order to turn inventory into throughput
Stacey
inventory control women
Bob
production manager
Lou
accounting
robots
the robots actually increased costs and didn't decrease any costs
statistical fluctuations
types of information that vary from one instance to the next
dependent events
,events that depend on something else happening before they can happen
in an efficient plant should everyone be working all the time?
no
what is a balanced plant
when the capacity of each and every resource is balanced exactly with demand from
the market
Herbie
-slow kid on the boy scout camping trip that kept messing up the flow of the marching
line
-he helped alex understand dependent events and statistical fluctuations
how does alex decide that a balanced plant is not the answer?
dice game/ match bowl experiment....showed that because of statistical fluctuations and
dependent events throughput goes down and inventory goes up
how does alex fix the herbie problem on the hike?
he put him at the front of the line and relieved him of his pack...this valences fluctuations
and increased his productivity which increased throughput of the team
bottleneck
any resource whose capacity is equal to or less than the demand placed on it
nonbottleneck
any resource whose capacity is greater than the demand placed on it
should the resources at the beginning have more capacity or should the
resources at the end?
the ones at the end should have more capacity
what should you balance with demand
the flow of product through the plant
why does every plant need bottlenecks?
if they didn't they would have enormous excess capactiy
how do they increase the capacity of the plant
they need more capacity at the bottlenecks
how do they make the bottle necks more efficent
-make them run continuously
-put quality control before the bottle necks so that the bottle necks are only working on
quality products
-they relieved workload on the bottle necks by giving some work to vendors
how much does it cost when a bottle neck is down
2735= the cost of the entire system
-because without the parts from the bottlenecks you can't sell the products
does alex use FIFO or LIFO
FIFO--first in first out...most overdue orders first
what was the tag system
a way to communicate to the workers which parts/orders were important
green tags
non bottleneck material, second priority (always work on batch with lower number)
red tag
,first priority, materials processed by bottle neck, work on them right away (only allowed
to finish another order if it takes less than 1/2 and hour) ((always work on batch with
lowest number))
what is another thing that helped with the bottle necks
they found complement machines
why are workers not at the bottlenecks when batches need to be changed
they are under the impression that they have to be constantly working, so they don't
want to just wait on batches to be done
what does the night foreman make a difference on the bottleneck
he finds a process by mixing and matching order priority that increases efficiency by 10
percent
what happened when they new priority system starts working?
inventory decreases and it revealed more "bottlenecks"
what is the problem with working non-bottlenecks to capacity on bottleneck parts
(red)
because now there are stacks of bottleneck parts that need non bottleneck parts for
final assembly...the red and green tags need to be modified
what does alex decide he needs to fix the problem with non bottlenecks and
bottleneck
a signal to link the bottlenecks with the release-of-materials schedule
what does Peach say alex has to do to keep the plant open after the first month
a 15% improvement...which relies heavily on demand from market
how do they fix the problem of more inventories and less throughput
they cut the batch sizes in half on non-bottlenecks....half the work-in-progress on the
floor...smaller batch sizes would result in less wait time on non-bottlenecks would would
create lower lead times and faster turn around for customers
how does the plant usually decide batch sizes
EBQ- economical batch quantity
how does alex handle the challenge of 1000 products in two weeks
they shipped 250 a week for 4 weeks starting in 2 weeks
how does the plant reach 17%
an old way of accounting...auditors sent to the plant just found 12.8% and costs have
gone up
who is Burnside and what does he
the owner of the company that did the 1000 orders, comes to plant and shakes hands,
and signs contract for 10,000 orders
how does the division meeting go?
not well, they just can't understand the new way of thinking
what promotion does Alex get
Mr. Peach's hob, he is going to be the division manager and manage 3 plants
what was the nature of the things Jonah taught them
it is common sense....yet the opposite of everything they have ever thought about
running the plant
what is CCR
capacity constraint resources-vwhen the bottlenecks are going great then some other
problems may pop up, not bottle necks but similar symptoms
, process for the whole division
on-going improvement
what way did the division look at inventory
as an asset, so it hurt the plant to lose all the inventory in the eyes of the division
order of importance regarding assets
throughput > inventory > operating expenses
5 step plan the plant followed
1. INDENTIFY the systems constraint(s)
2. decide how to EXPLOIT the system's constraint(s)
3. SUBORDINATE everything else to the above decision
4. ELEVEATE the system's constraits
5. WARNING !!! if in the previous steps a constraint has been broken, go back to step 1,
but do not allow inertia to cause a system's constraint
IF...THEN statement
IF the hypothesis is right THEN logically another fact must also exist
new problem in plant at the very end
with so many new orders the bottlenecks were okay but the non bottlenecks feeding into
the bottlenecks did not have enough capacity and they didn't account for it with
increased inventory. increased inventory would allow the machines with lower capacity
to supply the new orders
managerial questions
"what to change?" "what to change to?" "how to cause change?"
chapters in book
40
authors
cox goldrat
needed 100 units by 5pm. capacity on next unit was 25. how many units were
ready to ship?
90
when the people on the shop floor worked according to alex's schedule, what
were the results
19 units in first hour
Chapter 1
The plant has to finish order 41427 by the end of the day
Plant already laid off half their employees
Plant has 3 months to improve or they close losing 600 more jobs
Chapter 2
Alex rogo is from bearington and his wife hates it
Machine employee quits job
Machine breaks down
Forced to use employees from different areas of the plant
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