By: Ankit Khator – 15  Mahesh Chavda–  Nelson Rodgrieus–  Pratik Makhija– 19  Ritu Singh Shonali Shenai–  Urvi Mehta - 23

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

What Is This Thing Called TOC ? 6. Production The Toc Way 2. Critical Chain 4. The Race 5. It’s Not Luck 3. The Choice and many more……… . Necessary But Not Sufficient 8. The Haystack Syndrome 7. He has authored several business novels and non fiction works such as: 1.

 The book is also about global principles of manufacturing. .Introduction To The Book “THE GOAL”    It’s a different type of management book. This book is in the form of a novel as suspenseful as a thriller and equally fast-paced. It has reached a sale of eight million copies.


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

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

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

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 .

Sales Revenue .measurements of productivity The 3 basic measurements of productivity:  Throughput (TP) Rate at which system generates money through sales.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 .

Hiking with son .


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

Towards improvement       Returns to plant to confirm information. Introduces bottlenecks and non-bottle necks.maintain capacity slightly less than demand. . Trained operators are leaving the company. Hidden excess capacity. Objective. 6 months lead time to train NCX-10 operators.

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

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

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

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

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

Conclusion  Dr. Eliyahu Goldratt states. Industry is the heart of a nation’s wealth” and concluding he hopes that his book and theories help in strengthening it. . “Production is the heart of industry.

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