Mgmt: Theory of Constraints and Alex Essay examples

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1. Summary the GOAL
Alex Rogo is a plant manager at Unico. He got troubles with his job and family in keeping schedules, reducing costs, increasing quality, talking to his wife and son and other problems. Bill Peach is a division vice president who recognizes working unprofitability of Alex Rogo’s plant. Bill came and gave Alex three months to improve effective capacity of the plant, or the plant will be closed. Bill’s request is a significant challenge for Alex that he needs to think a strategy how to improve quality and reduce time to meet the order of the market as well as deliver orders of customers on time. While Alex had no idea what problems are, he met Jonas who is a scientist and helps Alex to identify the problem with his plant. Alex did not understand why the productivity did not increase as a result of installing robots. Firstly, Jonas asked him that what the goal of his business is. In this situation, the goal is to increase productivity. Secondly, Jonas showed him that there are three ways to increase the productivity including an increase of throughput, a decrease of inventory and a decrease of operating expense. Thirdly, Jonas showed him that what a constraint limited his plant to achieve in meeting orders of the market. An inventory built up, but the quantity of output did not increase. He did not understand at all until he accompany to troop with his son. The Boy Scout troop was spread way out with the fastest boy - Andy in the front and the lowest boy - Herbie lags way behind in the rear. Then Andy went too fast and left the rest of the troop about 2 miles that means they had to move faster to catch up with Andy. Alex identified that it was not who get there the fastest. The idea was to get there together. Therefore, he turned Herbie to move in the front troop and the rest of troop went behind. As a result, the speed of the troop increased twice. Alex though his plant like this situation that some machines
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Pastor Avitia Mgmt. 434 Jim Constand 10/31/2015 How a Fat Kid Saved a Plant “The Goal” is a management-oriented novel written by Eliyahu M. Goldratt, a business consultant known for his Theory of Constraints. “The Goal" was originally published in 1984 and ever since, it has been revised and republished a few more times. The story takes place in the city of Bearington, a city with not much other than manufacturing plants. The main character of the novel is Alex, who is also the manager of the…

Words 2054 - Pages 9