The Goal
Bus 324
11/05/13
The Goal: Discussion 1
Ch. 1-16
1. Main point #1: The first main point throughout chapters 1-16 is handling a bottleneck crisis. Bottleneck is the point where the flow of data within a manufacturing process has come to a halt. It deals with the handling certain constraints that are becoming hazardous to your production. Having the bottleneck effect has a tremendous impact the flow of your data and its current flow cycle. Bottleneck decreases the productivity which is extremely important within regards to the company being profitable and successful.
2. Main point #2: The second main point is focusing on creating a “goal”. You must first identify the problem at hand to figure out what needs to be fixed but then you must create a goal to provide a solution to your problem. The goal has to be realistic, timely, and it must illustrate the best possible outcome. In The Goal in the goal was to make money and anything that brought them closer to a greater productivity level. Being profitable is always a goal of any company but having an equal level of productivity can be a challenge.
3. Main point #3: The third main point is strategically executing a prosperous plan to increase your profitability to reach your “goal”. Jonah stated to Alex that in a plant you only need three classifications to run it effectively: Throughput, Inventory, and Operational expense. Throughput is the rate at which the system generates money through sales. Inventory is all the money that the system has invested in purchasing things which it intends to sell. Operational expense is all the money the system spends in order to turn inventory into throughput. This may not be the same for every corporation but Alex believed it was essential for his company.
11/05/13
The Goal: Discussion 1
Ch. 1-16
1. Main point #1: The first main point throughout chapters 1-16 is handling a bottleneck crisis. Bottleneck is the point where the flow of data within a manufacturing process has come to a halt. It deals with the handling certain constraints that are becoming hazardous to your production. Having the bottleneck effect has a tremendous impact the flow of your data and its current flow cycle. Bottleneck decreases the productivity which is extremely important within regards to the company being profitable and successful.
2. Main point #2: The second main point is focusing on creating a “goal”. You must first identify the problem at hand to figure out what needs to be fixed but then you must create a goal to provide a solution to your problem. The goal has to be realistic, timely, and it must illustrate the best possible outcome. In The Goal in the goal was to make money and anything that brought them closer to a greater productivity level. Being profitable is always a goal of any company but having an equal level of productivity can be a challenge.
3. Main point #3: The third main point is strategically executing a prosperous plan to increase your profitability to reach your “goal”. Jonah stated to Alex that in a plant you only need three classifications to run it effectively: Throughput, Inventory, and Operational expense. Throughput is the rate at which the system generates money through sales. Inventory is all the money that the system has invested in purchasing things which it intends to sell. Operational expense is all the money the system spends in order to turn inventory into throughput. This may not be the same for every corporation but Alex believed it was essential for his company.