Week 6 Written Assignment Executive Summary The Goal

Topics: Bottleneck, Project management, Choke point Pages: 9 (1694 words) Published: April 22, 2015


Week 6 Written Assignment
Executive Summary – The Goal
Adil S Ahmed
Benedictine University
MBA 630 – Operations Management
Professor Chester Legenza
August 2, 2014

Week 6 Written Assignment – Executive Summary – The Goal In this executive summary, The Goal by Goldratt will be analyzed in detail. First, 10 operations management decisions as found on page 7 of the Heizer and Render textbook will be listed in column 1. Next, for each OM decision, examples from The Goal textbook that exemplify the type of problem or solution relevant to the OM area will be summarized in column 2. Finally, a scenario from my work life will be exemplified in column 3. Three column and ten row table

First, 10 operations management decisions as found on page 7 of the Heizer and Render textbook will be listed in column 1. Next, for each OM decision, examples from The Goal textbook that exemplify the type of problem or solution relevant to the OM area will be summarized in column 2. Finally, a scenario from my work life will be exemplified in column 3. OM Decisions

Examples from The Goal
Work Life Scenario
Design of goods and services
The factory produces machined assemblies furnished to other factories in the UniWare Division as components of end-product applications, and also sold directly as spare parts assemblies to larger end-user customers. Mr. Peach (Mr. Rogo’s boss) will not budge for anything less than the order being shipped today (dispute of an overdue order #41427), and since plant is not productive or profitable, Alex has 3 months to show improvement else the plant factory will shut down. Goal of the plant is to make money by generating net profit (income minus expenses), return on investment, and cash flow. Danfoss designs, tests and manufactures frequency converters/drives, which are power conversion equipment. Danfoss is a power electronics manufacturer, and essentially provides energy-efficiency solutions in the HVAC, water/AQUA and Automation industries. Managing quality

The order #41427 does get shipped, but not very efficiently. All employees in the factory are working on one order with forbidden overtime to boot. Quality is defined by the number of errors in the end-use field application, and field returns. The higher the number of field returns/errors/failures, the lower the quality. Field returns is inversely proportional to quality. Process and capacity design

After Alex talks to Jonah, the president wants to have a photo taken with one of Alex’s robots. As a result, Alex begins thinking about the efficiency. With the help of the accountant, inventory control woman, and the production manager, Alex discovers the robots increased costs, operational expenses, and therefore were less productive. Implementing the robots increased costs by not reducing others, like direct labor. The labor was shifted to other parts of the plant.

The crew works out some of the details for keeping the bottlenecks constantly busy. In the process they find that they need another system to inform the workers what materials have priority at non-bottlenecks. Red and green tags are the answer. Red for bottleneck parts to be worked on first as to not hold up the bottleneck machine, and green for the non-bottleneck parts. Electrical Engineers, Mechanical Engineers, Control Engineers, Software Engineers and Test Engineers design and test drives produced by Danfoss. Accordingly, Production Engineers, Production Test Technicians and Assemblers assemble the product in production. Many tools, parts, printed wiring boards, assembly lines, test cranes and functional test equipment are required in order to generate high volume to keep up with customer demands. Location strategy

Lou explains that tooling, machines, the building, the whole plant are all inventory. The whole plant is an investment that can be sold. Stacey says, "So investment is the same thing as inventory." Thereafter, they decide that something drastic is...

References: Heizer, J. and Render, B. (2011). Operations Management: Sustainability and Supply Chain Management. (10th Ed.). Upper Saddle River, New Jersey: Prentice Hall.
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