By:By: Srishti Mehra ± 61  Dishita Modi ± 71  Shreya Sanil ± 91  Neeli Shah ± 101  Nikita Sheth - 106  Payal Tachak± 111 Tachak±

author.   . scientist. Obtained bachelors & masters degree in the field of science and doctrate of philosophy. He holds a number of patents in the areas from medical devices to drip irrigation to temperature sensors. philosopher & business leader.ABOUT THE AUTHOR  An educator.

Production The Toc Way 2. Necessary But Not Sufficient 8. The Race 5. The Choice and many more««« . Critical Chain 4. It¶s Not Luck 3. What Is This Thing Called TOC ? 6. He has also written a lot of various books such as: 1. The Haystack Syndrome 7.

This book is in the form of a novel as suspenseful as a thriller and equally fast-paced. fast-  . It has reached a sale of eight million copies.INTRODUCTION TO THE BOOK |THE GOAL}    It¶s a different type of management book. in which the author has expounds the theory of constraints. This book is in effect a disquisition on production management.

disguised as a love story. It is an underground best seller that utilizes a nonnon-traditional approach to convey important business information. It is a business textbook written in the novelnovelform. The Author has used the Socratic inductive reasoning to teach his Theory Of Constraints.   .

How to cause the change ± overcoming the inherent resistance to change. . an overall framework for helping businesses determine: 1. 3. 2. What to change to ± what are the simple practical solutions. Eliyahu Goldratt¶s Theory of Constraints. This book underscores Dr. What to change ± what is the leverage point.

From this book one can in improving organizational effectiveness and productivity. Dr.   The book is also about global principles of manufacturing. reduce customer frustration and organizational anxiety. free up capital tied up in excess inventory. Goldratt¶s ideas are surprisingly applicable in manufacturing and service organizations. .


Done his engineering under graduation and an MBA. his hometown.INTRODUCTION      Story about a young executive ± Alex Rogo. Factory produces machined assemblies. Started career in UniCo as project manager and now works under Bill Peach as plant manager in Bearington. Well trained staff led by highly experienced managers. .

If no improvement. 20 $ million unsold finished goods inventory lying in ware house. improvementDeadlineDeadline.3 months .shutdown.CURRENT SCENARIO       Orders bordering 2 months behind scheduled delivery date. Efficiency heading downward. Facing an increasing cash shortage.

Key identifiers of productivity. reducing expenses and selling more product.decreasing productivityinventory. Jonah leaves Alex to ponder upon the concept of productivity.NEW HOPE     Running into old physics professor Jonah. What is the GOAL? .

QUESTION LEFT BY JONAH: WHAT IS THE GOAL ?        Make product Increase market share Produce quality products Produce efficiently Hire workers Support the city. state and national economy Increase stockholder value .

Raw material Expense  Inventory (I) All the money that the system has invested in purchasing things which it intends to sell  Operational Expense (OE) All the money that the system spends in order to turn inventory into throughput .MEASUREMENTS OF PRODUCTIVITY The 3 basic measurements of productivity:  Throughput (TP) Rate at which system generates money through sales. Sales Revenue .



which should be minimized. Operational expense is roughly measured by the energy expended. especially towards the end of the operating sequence.     Final throughput is measured by the rate of the last and slowest operation in the sequence. Some resources need to have more capacity than others. which must be conserved.ALEXS OBSERVATION. . Inventory is equal to the length between the leader and the backdoor..

nonObjectiveObjective.maintain capacity slightly less than demand.TOWARDS IMPROVEMENT       Returns to plant to confirm information. Introduces bottlenecks and non-bottle necks. NCXTrained operators are leaving the company. Hidden excess capacity. 6 months lead time to train NCX-10 operators. .

 Bottleneck per unit cost = Total plant operating cost Total production bottleneck hours  .  Total plant capacity = Bottleneck capacity  Bottleneck defines plant throughput.  Zero defect.  Quality control.Considering alternate processes.

synonymous.making use and moving towards the goal. Four primary time components include: setup time. Activating ± simply turning it on. . Material release system.      Activating a resource and utilizing a resource are nonnon. queue time. process time. Utilizing . Reduce batch sizes.

 Potential to respond better to demand markets.  Solid profits and decreasing operating costs. .

Bob .plant manager Stacy ± production manager.     Alex announces his promotion. . Further market expansion. Removal of tags.

THREE FUNDAMENTAL DECISION ISSUES  1. Alex and Lou identify three fundamental decision issues as critical to the success of any manager: Knowing what to change. What to change to. . How to cause the change. 3. 2.

³Production is the heart of industry. Eliyahu Goldratt states.CONCLUSION  Dr. Industry is the heart of a nation¶s wealth´ and concluding he hopes that his book and theories help in strengthening it. .

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