The Goal was the first manufacturing management book I read in English. There is no theoretical framework in the book, so it is both interesting and easy to understand. This book was written by Eliyahu M. Goldratt and Jeff Cox, tells a fictional story about Alex Rogo, a manufacturing plant manager who struggled with situation that his plant faced with losses and shut, with the help of Jonah and through the efforts of the team, Rogo finally found out the way to save the plant and increase production efficiency, compress production time and reduce the production cost. It ultimately changed the entire plant as well as the situation of the company as a whole. It gave me a different insight into ...view middle of the document...
Every one of us knows that companies must make money, only by making money can companies develop. But how to let everyone know that the things they do is to help enterprises make money? The goal takes a careful look at this analysis: to measure the ability of the company of making money, we can use three indicators to measure:
3. Operational expenses.
The throughput is the money we received, the inventory is currently a backlog of money in the system, and the operating expense allows the throughput can occur which is the money we have to pay. An indicator used to measure received the money coming in, an indicator to measure the internal backlog of funds, another indicator to measure the money to pay to go. So if companies want to make money, they have to improve throughput, reduce inventory and operating expenses
Thirdly, smart managers need to deal with conflicts. There is a situation that Peach and Rogo had a problem of shot staff, Peach told Rogo to prove to him that he can effectively use of existing workers firstly, otherwise do not cry to him. This is a good practice; managers should allow others to reflect on themselves whether there is a management problem of them rather than just seek for support.
Fourthly, managers need always to reflect on themselves. Keep a clear head, stop and think. Rogo’s factory was in a hurry production every day, rushing delivery. Every batch of their goods delayed, and which goods to produce depend on the urging of leaders. Rogo ran in the field for production every day, in accordance with the instructions from his superiors to supervise his workers. Day after day, month after month, and year after year. Until the Peach gave him a time limit - three months, if he could not turn around, it is necessary to turn off the plant. Then he stopped to think carefully about exactly how to solve the problem. He should have thought about it. In particular, there is nothing to make him feel the advent of the crisis than plant closings. Think about it, we usually often encounter this kind of thing. Fortunately, Rogo had three months to change. Actually, a lot of times you are eliminated out when you have not found the problem. Therefore, we have to keep a sober mind in peacetime, to stop and think.
Fifthly, change the way in thinking. The book mentions different concepts of cost. The author says that only the products produced, and handed over to the customers, money is made. For the production of the bottleneck at the delay of one hour delay,...