Analysis Of The Goal By Eliyahu M Goldratt

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The Goal is written by the Eliyahu M. Goldratt which explains the methods for optimization of the work environment with respect to the company’s goal. The Theory of Constraints focuses on the utilization of the bottleneck machine or machines. In this book bottleneck impedes company’s goal A bottleneck is a resource which is determined when it equals to or less than the market demand placed on it. In other words, total capacity or maximum output are blocked by the bottleneck. In the book, there are some ways to find out the bottleneck to step in some important manufacturing improvements such as production efficiency, throughput and flow time. The first method starts with the calculation of the demand of each resource and equipment in the company. If the capacity of the machine is less …show more content…
If the lot sizes are decreased, all parts of the cycles time will also be low so that company can be able to quick response to the market. Hence, their lead time is low, and more orders can be made by the customers.
However, there are two important issues about the reducing lot sizes. One limit is setup times and costs of machines. Reducing batch size directly affects to the setup times of the machine because lower lot size means higher setup arrangements on equipment which also means that higher setup cost. However, this is not true because Alex said that parts to be processed were not driven to the manufacturing area until the bottlenecks are ready to be processed. For this reason, they can be able to do more adjustments on the machines that are not bottleneck.
Another important issue that can limit this strategy is related to the suppliers. When the low sizes are reduced, supplier should be able to increase the frequency of deliveries and its quantity which requires to convince suppliers to send lower parts because of the lower lot sizes. This can lead to high delivery cost because the cost of delivery in the past could

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