Goal Report

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Maryam Mian – 15.761
The Goal – Report
1. What are the methods described in The Goal for identifying a bottleneck? The bottleneck is defined as the resource such that the capacity is equal to, or less than the demand placed on it. To identify the bottleneck for this particular case, those processes were analyzed after which there is usually a shortage of material 2. After bottlenecks have been identified, what are the concrete factory floor-level actions described in the book for improving overall system performance? After identifying the bottlenecks, the actions described in the book were as follows: * Have the bottlenecks always run at full capacity

* Let the speed of the bottleneck decide the speed of the process. * Do not waste any bottleneck resource
* Bottleneck capacity should equal demand

3. Relate the notions of statistical fluctuations and dependent events mentioned in the book to concepts covered during the course. Also explain and relate to course concepts the statement made by Jonah that a factory “balanced with demand” will soon experience bankruptcy. Statistical fluctuation is the same thing as variance in arrival times and variance in service time. Basically, small ups and down that average out, but the fluctuation causes an increase in the total time needed to process. Jonah’s phrase “balanced with demand” can be considered similar to when capacity utilization, p, reaches close to 1. That is, with a balance in demand is too great a constrain on resources, and quickly dries up all cash flow. 4. Several times in the book, lot sizes are reduced in order to decrease cycle time. What are the limits to this strategy?

Decreasing the lot sizes increased some of the costs, e.g, labor, set up costs, costs to run the machines etc. However, the benefits of an increased cycle time were far more than the added costs. However, there is always a certain threshold beyond which the increased costs are higher than the profits...
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