Case Study Of Bill Peach

Register to read the introduction… His superior, Bill Peach always targets him for petty issues and makes him feel low about everything that is going on in his plant, obviously in terms of meeting the deadlines to ship the final product and the plant’s inefficiency. Alex has a bad family life too with his wife and kids, not being happy, even after his making a lot of money. His wife clearly is bugged with her life due to Alex’s lack of attention to her. To top it all, Alex’s job is in jeopardy since his plant is exceptionally on the lower side of productivity and meeting with deadlines. He’s got just three months to prove his credibility as the Plant Manager to Bill Peach, the division Vice-President. He’s got a lot of issues with his workmen professionally because of the pressure from the top about getting the finished product shipped within the deadline and because of the blame games being played by all of his team members. Basically, he is heading a plant that is totally inefficient, not with inefficient people but with an inefficient system which he realizes …show more content…
He explains to Alex that a balance of the working of a system can never be attained and should not be tried to, for improved success. He explains that variability causes the organization to not use resources to full capacity. Jonah tells him to judge things after trying to find out the root cause of any problem. Goldratt gives a very simple illustration of trying to find the root cause of any problem and the importance of a leader to have the goal set and also getting to learn his team’s drawbacks and positive characteristics through the following situation in Alex’s life. Alex accompanied by his son, goes for a camp and finds a lot of trouble with the leader of the trek. He gets to know about the importance of fixing a goal and the credibility of a leader in achieving the goal through his journey while in camp. Jonah advises Alex to collect sufficient data and more importantly the right data for improved efficiency. Jonah also tells him to find the bottlenecks, which are easily identifiable when walked through the process line of manufacturing, that are causing hindrance in the company’s growth and that the bottleneck had to be attacked and put to maximum utilization than a non-bottleneck. He says that putting the non-bottleneck to full utilization is an act of stupidity and this may lead to the company’s doom. He enlightens Alex about the fact that bottlenecks can never be removed but can be controlled and that a bottleneck if removed from one place shifts to some other place, and that there is always a constraint which pulls the plant from attaining higher efficiencies. He advises Alex to reduce the operational costs and to increase throughput by increasing the throughput of the constraints, no matter the cost incurred since the constraints are the ones which limit the throughput of the whole plant. Jonah talks about the inventory being a very important factor as far as a company’s success is