Eliyahu M. Goldratt and Jeff Cox has written this novel on THEORY OF CONSTRAINTS or basically the theory of bottleneck in terms of operation and supply chain. Bottleneck, or constraint, refers to the limitation or the limiting factor present in the process of a production, or work which can narrow down the efficiency of the whole production system. Theory of constraints tells you to either remove the limiting factor or improve it until it is not a hurdle in the process flow.
This book is basically on a plant production manager of UniCo. Corporation Manufacturing limited, Alex Rogo who is struggling for the existence for his plant situated in the city of Bearington. He has been given only a time of 3 months to show not only better efficiency …show more content…
Bill Peach was so furious about it because he got a notice from the authority to deliver it the day itself due to which he created chaos and also made the plant suffer from a loss of experienced machinist . Although Alex was able to deliver the order by tightening up certain aspects and incurring some losses in other setup, he was disrupted by the fact that he lost an employee. But then arrives the real problem. He gets to know that the plant will be shut down due to its inefficiency and lack of responsibility towards the customer’s order. This shattered him and he started looking for a ray of hope for improvement. Later he got to know that the plant can be put up to sale which means doors for any job in this corporation will be permanently …show more content…
In the process of thinking, he remembers that in between a travel, he met one of his physics teacher Jonah who amazed him by his ultimate philosophy and knowledge about operations in a plant which was not expected out of a normal physicist. Alex was confused as to how he predicted the fall of his plant by just some questions. He then tried to contact him and tried to find some answers. So the first question that arised was
• What is the goal of your company?
Ans. After a long struggle withing himself he came to a conclusion that it is MONEY.
After this question was answered, Jonah helped him and his team mates find the measurements revolving around a the goal.
• What are the measurement revolving around the goal?
Ans.(i) Throughput - Rate at which system generates money through “sales”. (ii) Operational Expense – All the investment to turn inventory into throughput. (iii) Inventory- all the money that company spends in order to purchase what it
This book is basically on a plant production manager of UniCo. Corporation Manufacturing limited, Alex Rogo who is struggling for the existence for his plant situated in the city of Bearington. He has been given only a time of 3 months to show not only better efficiency …show more content…
Bill Peach was so furious about it because he got a notice from the authority to deliver it the day itself due to which he created chaos and also made the plant suffer from a loss of experienced machinist . Although Alex was able to deliver the order by tightening up certain aspects and incurring some losses in other setup, he was disrupted by the fact that he lost an employee. But then arrives the real problem. He gets to know that the plant will be shut down due to its inefficiency and lack of responsibility towards the customer’s order. This shattered him and he started looking for a ray of hope for improvement. Later he got to know that the plant can be put up to sale which means doors for any job in this corporation will be permanently …show more content…
In the process of thinking, he remembers that in between a travel, he met one of his physics teacher Jonah who amazed him by his ultimate philosophy and knowledge about operations in a plant which was not expected out of a normal physicist. Alex was confused as to how he predicted the fall of his plant by just some questions. He then tried to contact him and tried to find some answers. So the first question that arised was
• What is the goal of your company?
Ans. After a long struggle withing himself he came to a conclusion that it is MONEY.
After this question was answered, Jonah helped him and his team mates find the measurements revolving around a the goal.
• What are the measurement revolving around the goal?
Ans.(i) Throughput - Rate at which system generates money through “sales”. (ii) Operational Expense – All the investment to turn inventory into throughput. (iii) Inventory- all the money that company spends in order to purchase what it