Analysis Of The Goal, It's Not Luck By Eliyahu M. Goldratt

The Goal, A Process of Ongoing Improvement, was written by Eliyahu M. Goldratt. The Goal was written and published in 1984. It is a business novel that discusses the theory of constraints through a plant manager’s perspective. The Goal was not intended to be part of a series. However, in 1994 Goldratt published a sequel, It’s Not Luck. It’s Not Luck explores the theory of constraint in a variety of industries. According to Goldratts online biography, the author, obtained his Bachelor of Science degree in Tel Aviv University. Additionally, he holds a Master’s of Science, and Doctorate of Philosophy from Bar-Ilan University. He is perceived as a business leader who compels business persons to review and consider new ways to conduct business.
First, the key character, Alex Rogo, is a manager that faces a plant closure due to late shipments caused by production delays. These delays caused a bigger problem for the plant, revenue loss. Therefore, management is planning on closing it in three months. Alex, while in the midst of marital problems uses these last few months to analyze his current situation and save the plant. In addition to Alex, we are introduced to Jonah, a college professor from Alex’s’ past, who also plays a large part in this novel. Jonah, is the savior to Alex as he communicates several key concepts to help Alex. He asks Alex a series of questions that get Alex to start thinking logically about the plant. The thought provoking questions that needed to be addressed to assist Alex in finding a solution are; what are the bottlenecks, how can capacity be used to improve productivity. This knowledge enables Alex to identify and rectify two bottlenecks. In the conclusion he is successful in preventing the closure of his
I work in the new inventory department where we conduct a monthly forecast with Caterpillar on the needs for the next few months. Our current process in place is to submit forecasting data to CAT via an online tool, once this data is submitted it will display what is recommended to order in order to cover our needs. Secondly, we are required to send yet another form with the requested models to order back to CAT. Lastly, CAT will review this form, our demand, the industry demand and then let us know the quantity of units we can actually order. This forecasting process last about two weeks. Using the five step process to figure out the constraint could possibly create an effective process. Another place TOC can be applied is maybe a hiring process at a firm or how they operate in that aspect. Companies can review what their current hiring process is and why it takes so long to eliminate a