The GoalA Process of Ongoing
Improvement(Chapter 1,2 & 3)
Presented By
Man Mohan AnandMBA (Marketing & Operation) | 2009-11M.S.Ramaiah Management Institute, [email protected]
About The Author
Born in March 31, 1948 an Israeli physicist who became a
Business Management Guru B.Sc. from Tel Aviv University (TAU),
Israel M.Sc. Doctorate of Philosophy from Bar-Ilan University (BIU), Israel An Educator, Author, Scientist,
Philosopher & Business Leader. He holds a number of patents in the
areas from medical devices to drip irrigation to temperature sensors.
Eliyahu Moshe Goldratt
Introduction – The Goal
Dr. Eli Goldratt's book “The Goal”, has been a best seller since 1984 and is recognized as one of the best-selling management books of all time.
The Author has used the Socratic inductive reasoning to teach his Theory Of Constraints
It is an underground best seller that utilizes a non-traditional approach to convey important business information.
It has reached a sale of eight million copies. This book which is an overall framework for various businesses
determine: What to change? Change to what ? How to cause the change?
The Goal – An Ongoing Process of Improvement
The Goal - Scenario
Story revolves around 38year old young executive – Alex Rogo.
An Engineering Graduate + MBA. Started career in UniCo as
project manager and now works under Bill Peach as plant manager in Bearington, his hometown.
Factory produces machined assemblies.
Well trained staff led by highly experienced managers.
Story Characters
Alex Rogo, Plant
Manager
Julie, Rogo’s Wife
Bill Peach, Vice
President
Bob Donovan, Production Manager
Fran, Rogo’s
Secretary
Dempsey, Shift
Supervisor Martinez, Union
Steward
Chapter-1: Summary
Mr. Rogo, Plant Manager faced a heated situation created by Bill Peach, Vice President who surprisingly demanded the status of Customer Order 41427
Order No. 41427 - Order from Bucky Burnside, President of one of UniCo Biggest Customer
Bill Peach’s Demand – Dispatch the Order No.41427 within 24hrs
The Bad Luck – Machine NCX-10 was down, Assemblies were missing.
Peach’s Warning – 3 Months to clear all the backlogs of the plant
Chapter-2: Summary
In-house Conflicts between Rogo & his wife Julie Total work force was streamlined over Order No. 41427 Bottleneck , Overtime, Overworked Finally NCX-10 Machine started working by 4:30pm Consignment Dispatched by 11pm Alex Rogo celebrated with Bob Donovan discussing
about how they managed this order no. 41427 The Missing Element – Inspite of best technology,
best machines, best people, something was missing Damn Competition – Earlier Japanese were beating
UniCo on Quality and Product Design, Now they were beating UniCo over Price & Delivery
Self Realization – Rogo gave a thought of his past performance and record and realized his potential that he can clear all backlogs with in 3 months
Chapter-3: Summary
Stress Continues – Early Morning Meeting at headquarter held by Bill Peach, Vice President
The Bad News – The whole division goes up for sale if the performance continue. Deadline – 6 Months
Result – Sacking of employees including Vice President, Bill Peach
Meeting Objective – Analysis of Quarter result and performance of each plant under Bill Peach
New Strategy – How we are going to meet this challenge
The Answer - The future of the business depends upon the ability to increase productivity
References
The Goal - Eliyahu M. Goldratt http://www.google.co.in http://www.wikipedia.com
Thank You