Isye 3232

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ISYE3232

The key idea of the Goal is to clarify the importance of strategic capacity planning and constraint management . The background of the goal is Alex Rogo manages a production plant which faces the bankrupt financial crisis. --After Alex’s conversation with Jonah, we know the goal of any business is to make money.

--Bottlenecks:
The book points out bottlenecks is one process in a chain of processes which is measured and controlled by variations on three measures: throughput, inventory and operational expense. And the bottleneck’s speed of production is what determines the speed of the other dependents. We should test quality control before going into the bottleneck because an hour lost at a bottleneck is an hour lost at the whole system. Focused on capacity, the company should increase throughput, decrease inventory and operational expense to make more money. During a hiking trip with Alex’s son, he produces a game for a few of the kids to demonstrate an ideal balance line of production. And we learned supply should be less than demand to make sure demand is going to decrease in market economy. --dependant events

a event is going to happen if and only if a series of events have happened --statistical fluctuation
the speed of the kids is not always same, production process is not always at the same speed. --break bottlenecks:
1. Identify the system's bottlenecks
2. how to get the most out of the bottleneck
3. Subordinate everything else to the above decision
4. Elevate the system's bottleneck
5. If the bottleneck has broken in the step 4 go back to step 1 --the proper way to manage any operation:
1.Identify what needs to be changed
2.Identify what are going to be changed to
3. How to execute the change

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