The Goal Take Aways

Topics: Project management, Rate of return, Cash flow Pages: 1 (279 words) Published: October 31, 2012
Key Take aways from THE GOAL
1: The goal of a manufacturing organization is to make money. Thus, any actions that help the organization to make money are productive, in opposite, any actions that take the organization away from making money are non-productive. 2: Making money by increasing the net profit, while simultaneously increasing return on investment, and simultaneously increasing cash flow. 3: To achieve the goal of making money, organizations should increase throughout while simultaneously reducing both inventory and operation expenses. 4: When throughout rate increases, the time of occupied capital on the goods under production decreases, thus increasing the cash flow. 5: When the inventory decreases, the capital occupied on the inventory has decreases, thus increasing the cash flow. 6: When customer responding time decreases, the time of occupied capital on the goods under production for the customer decreases, thus increasing the cash flow. 7: An efficient plant needs to balance the product flow to the market demand. 8: The bottlenecks flow determine the throughout. Mr Rogo helped successfully increase the bottlenecks capacity by putting the QC before the bottlenecks, keeping the bottlenecks working continuously, making sure the bottlenecks only work on the products with red tag, and adding extra machines. 9: The overwork of the non-bottlenecks will increase the inventory and decrease the producing efficiency. 10: Mr Rogo successfully helped decrease the inventory by scheduling and releasing the materials for the whole plant based on the capacity of bottlenecks. 11: Mr Rogo helped shorten the customer responding time tremendously by cutting the batch sizes in half. By doing so, the time for each piece of materials staying in the plant has been shortened.
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