The Goal By Eliyahu Goldratt Max Questions and Answers 2023 Complete

The Goal By Eliyahu Goldratt Max Questions and Answers 2023 Complete main character - alex rogo company - unico problem - everything is late, working on overtime,not making money Peach - division vice president alex's job - plant manager how long does the division have to improve - 1 year how long does the plant have to improve - 3 months Jonah - old physics professor, consultant what does jonah tell alex during the first meeting at the airport - -productiviy is meaningless unless you know a goal -preducts the high inventories and late orders -tell alex to not think like everyone else what does alex decide the goal is? - TO MAKE MONEY----not to fill warehouses full of inventory what is the absolute measurement ? relative measurement? - net profit needs to increase (absolute) along with increasing ROI...return on investment... and cash flow (relative) throughput - the rate at which the system generates money through SALES...money coming in inventory - the money that the system has invested in purchasing things which it intends to sell operational expense - all the money the system spends in order to turn inventory into throughput Stacey - inventory control women Bob - production manager Lou - accounting robots - the robots actually increased costs and didn't decrease any costs statistical fluctuations - types of information that vary from one instance to the next dependent events - events that depend on something else happening before they can happen in an efficient plant should everyone be working all the time? - no what is a balanced plant - when the capacity of each and every resource is balanced exactly with demand from the market Herbie - -slow kid on the boy scout camping trip that kept messing up the flow of the marching line -he helped alex understand dependent events and statistical fluctuations how does alex decide that a balanced plant is not the answer? - dice game/ match bowl experiment....showed that because of statistical fluctuations and dependent events throughput goes down and inventory goes up how does alex fix the herbie problem on the hike? - he put him at the front of the line and relieved him of his pack...this valences fluctuations and increased his productivity which increased throughput of the team bottleneck - any resource whose capacity is equal to or less than the demand placed on it nonbottleneck - any resource whose capacity is greater than the demand placed on it should the resources at the beginning have more capacity or should the resources at the end? - the ones at the end should have more capacity what should you balance with demand - the flow of product through the plant why does every plant need bottlenecks? - if they didn't they would have enormous excess capactiy how do they increase the capacity of the plant - they need more capacity at the bottlenecks how do they make the bottle necks more efficent - -make them run continuously -put quality control before the bottle necks so that the bottle necks are only working on quality products -they relieved workload on the bottle necks by giving some work to vendors how much does it cost when a bottle neck is down - 2735= the cost of the entire system -because without the parts from the bottlenecks you can't sell the products does alex use FIFO or LIFO - FIFO--first in first out...most overdue orders first what was the tag system - a way to communicate to the workers which parts/orders were important green tags - non bottleneck material, second priority (always work on batch with lower number) red tag - first priority, materials processed by bottle neck, work on them right away (only allowed to finish another order if it takes less than 1/2 and hour) ((always work on batch with lowest number)) what is another thing that helped with the bottle necks - they found complement machines why are workers not at the bottlenecks when batches need to be changed - they are under the impression that they have to be constantly working, so they don't want to just wait on batches to be done what does the night foreman make a difference on the bottleneck - he finds a process by mixing and matching order priority that increases efficiency by 10 percent what happened when they new priority system starts working? - inventory decreases and it revealed more "bottlenecks" what is the problem with working non-bottlenecks to capacity on bottleneck parts (red) - because now there are stacks of bottleneck parts that need non bottleneck parts for final assembly...the red and green tags need to be modified what does alex decide he needs to fix the problem with non bottlenecks and bottleneck - a signal to link the bottlenecks with the release-of-materials schedule what does Peach say alex has to do to keep the plant open after the first month - a 15% improvement...which relies heavily on demand from market how do they fix the problem of more inventories and less throughput - they cut the batch sizes in half on non-bottlenecks....half the work-in-progress on the floor...smaller batch sizes would result in less wait time on non-bottlenecks would would create lower lead times and faster turn around for customers how does the plant usually decide batch sizes - EBQ- economical batch quantity how does alex handle the challenge of 1000 products in two weeks - they shipped 250 a week for 4 weeks starting in 2 weeks how does the plant reach 17% - an old way of accounting...auditors sent to the plant just found 12.8% and costs have gone up who is Burnside and what does he - the owner of the company that did the 1000 orders, comes to plant and shakes hands, and signs contract for 10,000 orders how does the division meeting go? - not well, they just can't understand the new way of thinking what promotion does Alex get - Mr. Peach's hob, he is going to be the division manager and manage 3 plants what was the nature of the things Jonah taught them - it is common sense....yet the opposite of everything they have ever thought about running the plant what is CCR - capacity constraint resources-vwhen the bottlenecks are going great then some other problems may pop up, not bottle necks but similar symptoms process for the whole division - on-going improvement what way did the division look at inventory - as an asset, so it hurt the plant to lose all the inventory in the eyes of the division order of importance regarding assets - throughput inventory operating expenses 5 step plan the plant followed - 1. INDENTIFY the systems constraint(s) 2. decide how to EXPLOIT the system's constraint(s) 3. SUBORDINATE everything else to the above decision 4. ELEVEATE the system's constraits 5. WARNING !!! if in the previous steps a constraint has been broken, go back to step 1, but do not allow inertia to cause a system's constraint IF...THEN statement - IF the hypothesis is right THEN logically another fact must also exist new problem in plant at the very end - with so many new orders the bottlenecks were okay but the non bottlenecks feeding into the bottlenecks did not have enough capacity and they didn't account for it with increased inventory. increased inventory would allow the machines with lower capacity to supply the new orders managerial questions - "what to change?" "what to change to?" "how to cause change?" chapters in book - 40 authors - cox goldrat needed 100 units by 5pm. capacity on next unit was 25. how many units were ready to ship? - 90 when the people on the shop floor worked according to alex's schedule, what were the results - 19 units in first hour Chapter 1 - The plant has to finish order 41427 by the end of the day Plant already laid off half their employees Plant has 3 months to improve or they close losing 600 more jobs Chapter 2 - Alex rogo is from bearington and his wife hates it Machine employee quits job Machine breaks down Forced to use employees from different areas of the plant Order 41427 gets shipped Chapter 3 - Mr. Peach holds a meeting Division closes in 1 year if they don't improve Peach wants to set new goals and work to achieve them Chapter 4 - Alex reflects on meeting Jonah Jonah tells him he's running an unproductive plant predicts high inventories and low shipping rates Jonah tells him to figure out the GOAL of every company Chapter 5 - Alex leaves the meeting at break time Alex realizes that money is the goal and everything else are just means to achieve the main goal Chapter 6 - Alex talks to Lou (plant controller) about how to achieve the goal of Money Net profit needs to increase along with simultaneously increasing return on investment and cash flow. Chapter 7 - Decides to stay with the plant Decides he needs to find Jonah again Chapter 8 - Alex talks to Jonah again and learns that he learns 3 terms to run his plant: Throughput: The rate of sales Inventory: the $ invested in their products Operational Expense: the costs associated with converting inventory into throughput Chapter 9 - Alex forms a group (Bob, lee, Stacy) and they plunge into the basic nature of each element of the plant and categorize them according to the three figures They discover the robots increased costs, operational expenses, and therefore were less productive Chapter 10 - Alex's staff make their own definitions of: Throughput: $ coming in Inventory: the $ currently inside the system Operational Expense: $ we have to pay to increase throughput They make a plan to meet with Jonah in NY Chapter 11 - Jonah confirms their problems can be fixed in 3 months Jonah says, "A plant in which everyone is working all the time is very inefficient." Jonah says the closer to a balanced plant, the closer to bankruptcy Jonah says to consider dependent events and statistical fluctuations Chapter 12 - Focuses on his relationship with his wife, promises to spend the weekend with her Chapter 13 - Alex went hiking with his son and notices their walking line spreading and closing and relates that to statistical fluctuations and then states that the dependent events of each scout cause them Even if there were no limits, the last event must make up for all the others for all of them to average out Chapter 14 - Alex plays a game with dice called the Match bowl experiment with the hikers. Alex realizes the effects of bottlenecks and learns that balanced plants aren't ideal Dependent events and statistical fluctuations tend to pull down the throughput for each day, and the operational expenses as well the cost of inventory increase Chapter 15 - Alex puts slowest hiker in front and reduces his weight to increase productivity Chapter 16 - his wife leaves him and leaves children Chapter 17 - Jonah tells his team about what he learned hiking and applies it to complete an overdue order Chapter 18 - Jonah teaches Alex about bottlenecks: Bottleneck: A bottleneck is any resource whose capacity is equal to or less than the demand placed upon it. Non-Bottleneck: A non-bottleneck is any resource whose capacity is greater than the demand placed on it. Jonah explains that Alex should not try to balance capacity with demand, but instead balance the flow of product through the plant Alex & his team find the plant's bottlenecks and work on ideas to improve it like the slow kid in the hiking line their machines NCX-10 and their furnace are the bottlenecks Chapter 19 - Jonah visits the plant and points out bottlenecks Jonah shows them how to increase productivity by increasing it at the bottleneck's locations Relates bottleneck downtime with the loss of throughput Every minute of downtime at a bottleneck translates into thousands of dollars of loss throughput, because without the parts from the bottleneck, you can't sell the product. Chapter 20 - Alex