The Goal
EIN6339 Operations Engineering
ASSIGNMENT #1: The Goal and Theory of Constraints (TOC)
Shahrouz Ebadian (Shahrouz.Ebadian@gmail.com)
The Goal: Do you think that this is an operational methodology or a philosophy? Please explain.
The Goal is a management-oriented novel that focuses on the concepts of systems management. The fictional novel focuses around Alex Rogo and the problems in his production plant. The plant is constantly behind schedule and unprofitable. Alex is given three months to turn things around or the plant will be shut down.
The Goal introduces the “Theory of Constraints (TOC)” which is an overall management philosophy that adopts the idiom “A chain is no stronger than its weakest link”. This emphasizes how organizations and processes are vulnerable because that weakest link can always adversely impact and damage the company.
The “goal” is to make money and anything that assists in doing this is productive, while anything that hinders this is a bottleneck. The Goal goes on to identify bottlenecks (constraints) in the manufacturing process and how identifying them helps reduce impact and allows for controlling the flow of materials.
One of the main emphasis points throughout is the communication element. Whenever a problem arises the team discusses the problem amongst themselves to find a solution. The discussion process uses five steps to solve any problem: 1. Identify the system’s constraint 2. Decide how to exploit the system’s constraint 3. Subordinate everything else to the prior decisions 4. Elevate the system’s constraint 5. If, in the prior steps, the constraint has been broken, go back to step one.
The line between an operational methodology and a philosophy in my opinion is not clear cut black and white. An operational methodology in certain instances can be well defined. Let’s start with a simple example of putting a computer together. The steps could be:
• Installing a motherboard
ASSIGNMENT #1: The Goal and Theory of Constraints (TOC)
Shahrouz Ebadian (Shahrouz.Ebadian@gmail.com)
The Goal: Do you think that this is an operational methodology or a philosophy? Please explain.
The Goal is a management-oriented novel that focuses on the concepts of systems management. The fictional novel focuses around Alex Rogo and the problems in his production plant. The plant is constantly behind schedule and unprofitable. Alex is given three months to turn things around or the plant will be shut down.
The Goal introduces the “Theory of Constraints (TOC)” which is an overall management philosophy that adopts the idiom “A chain is no stronger than its weakest link”. This emphasizes how organizations and processes are vulnerable because that weakest link can always adversely impact and damage the company.
The “goal” is to make money and anything that assists in doing this is productive, while anything that hinders this is a bottleneck. The Goal goes on to identify bottlenecks (constraints) in the manufacturing process and how identifying them helps reduce impact and allows for controlling the flow of materials.
One of the main emphasis points throughout is the communication element. Whenever a problem arises the team discusses the problem amongst themselves to find a solution. The discussion process uses five steps to solve any problem: 1. Identify the system’s constraint 2. Decide how to exploit the system’s constraint 3. Subordinate everything else to the prior decisions 4. Elevate the system’s constraint 5. If, in the prior steps, the constraint has been broken, go back to step one.
The line between an operational methodology and a philosophy in my opinion is not clear cut black and white. An operational methodology in certain instances can be well defined. Let’s start with a simple example of putting a computer together. The steps could be:
• Installing a motherboard
References: Amazon.com case study - Smart Insights Digital Marketing Advice. (n.d.). Digital marketing strategy advice - Smart Insights Digital Marketing. Retrieved from http://www.smartinsights.com/digital-marketing-strategy/online-business-revenue-models/amazon-case-study/ Goldratt & Cox - The Goal. (n.d.). Management And Accounting Web Home Page. Retrieved from http://www.maaw.info/ArticleSummaries/ArtSumTheGoal.htm Implementing the Theory of Constraints (TOC) In Production. (n.d.). Center for Industrial Research and Service - Home. Retrieved from http://www.ciras.iastate.edu/publications/CIRASNews/winter98/toc.htm Theory of Constraints Gains Momentum in JapanNation Exports JIT, Imports Alternative — Turnaround Management Association. (n.d.). Turnaround Management Association. Retrieved from http://www.turnaround.org/Publications/Articles.aspx?objectID=816 Theory of Constraints Summary. (n.d.). Operations Management Consulting,Supply Chain Consulting, project management consulting. Retrieved from http://www.pinnacle-strategies.com/Theory%20of%20Constraints.htm Unblocking Bottlenecks - Problem Solving Skills from MindTools.com. (n.d.). Mind Tools - Management Training, Leadership Training and Career Training. Retrieved from http://www.mindtools.com/pages/article/newTMC_76.htm Retrieved from http://etd.lib.metu.edu.tr/upload/12611665/index.pdf