THE GOAL

-ELI GOLDRATT
By: Jayanti Kankan Prateek Kapil Deepak Shikha Anshu Adarsh Mohit Ankita

THE GOAL

Eli Goldratt- Israeli physicist and business thinker Important book for operations The book talks about :
What

is the goal of the company? Why organizations exist? What is the Purpose of Business?

KEY MESSAGE
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

The goal is to reduce operational expense and reduce inventory while simultaneously increasing throughput.

THEORY OF CONSTRAINTS
A theory which develops ideas on how to identify the underlying causes of the problems which are holding you back

This theory comes into practice in the following 5 steps:

Identify the systems bottlenecks. Decide how to exploit the bottlenecks. Subordinate everything else to the above decision. Elevate the systems bottlenecks. If, in a previous step, a bottleneck has been broken go back to step 1

STORY

Mr. Alex Rogo, who is a plant manager for UniCo The plant is loosing money and he only has three months to get it back on track or they will shut it down.

Alex contacts Jonah-his old physics teacher from college

Contd..

Jonah first tells Alex to figure out what productivity and the goal of his plant was. Jonah then gives him 3 exact measurements i.e. throughput, inventory and operational cost Jonah tells Alex to figure out what these measurements are equivalent to in his plant.

Contd..

Jonah then tells him about bottlenecks and nonbottlenecks in the plant then as usual tells Alex to return once again when he has a better understanding. Eventually get the plant running better than any other plant in the division, maybe even the industry. Plant does not get shut down and Alex and all of the other members of the group that saved the plant get promotions.

KEY LEARNINGS

The Goal Measurements

Critical thinking
Teamwork Never give up

Experience..

THANK YOU