Eliyahu M. Goldratt's "The Goal"

Paper Summary:

This paper explains that Eliyahu M. Goldratt's "The Goal" presents a different perspective on modern manufacturing business. The paper relates that, by using the format of a novel, the reader is able to understand the true goal, new measurements, capacity planning and the way the market affects the manufacturing plant. The paper states that the goal upon which the manufacturing function must redirect its focus is the company goal to make money. The author relates that the measurements at the operational/manufacturing level to evaluate if the company is make money are throughput, inventory and operational expense. The author underscores the concept that management should consider how all machines work together to produce a good.

From the Paper:

"A manufacturing plant contains two types of resources, bottlenecks and non-bottlenecks. A bottleneck is a resource whose capacity is equal to or less than the demand placed on it. A non-bottle neck is the opposite where capacity is greater than the demand. Including those two aspects into our analysis of the plant, Jonah says that instead of balancing the flow of a product with market demand through the plant, the product should be balanced with the full capacity of the bottleneck. All we're doing is refocusing the manufacturing plant from market demand to the bottleneck."

More papers on Eliyahu M. Goldratt's "The Goal":

• Analytical Essay # 83609 : "Eliyahu M. Goldratt's "The Goal"
• Analytical Essay # 64934 : "Eliyahu M. Goldratt's and Jeff Cox's "The Goal"
• Book Review # 108632 : "Goldratt's, "The Goal In Non-Profit Organization Setting"."

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