The Goal

In: Business and Management

Submitted By A574128
Words 1581
Pages 7
In Eliyahu Goldratt’s novel “The Goal: A Process of Ongoing Improvement”, tells a story about Alex Rogo going through hard times, in both his work life and personal life. Alex Rogo is the manager of UniCo a manufacturing plant operating inefficiently and unprofitable. His boss, Mr. Peach, gave him an ultimatum to keep the business running and profitable within three month time span (Goldratt & Cox, 2004, p. 6). The most important issues Mr. Rogo faces in the manufacturing plant are internal constraints. The constraints Mr. Rogo faces are his disengagement in the plants performance and knowledge, inventory, robots working under their capacity resulting in late fulfilled orders. Six Sigma can alleviate the constraints and make the plant efficient and profitable. A plan applying this technique will be explained to make UniCo efficient and profitable.
The ideology of every business is to make money. Mr. Rogo’s manufacturing plant is not the exception. Mr. Rogo’s unawareness of the level of efficiency in the plant was projected to the employees resulting in not understanding the direction and the goal of the company. In addition, management was unable to understand and identify constraints in the process due to inadequate reporting. These led to find issues such as constraints in bottlenecks, traditional ways of computing profit, and the relationship between human labor capacity and robots (machine) time. The inventory and materials is another constraint identified in the plant. The plant has been operating thinking in making the reports look good by increasing efficiency, creating and accumulating inventory. These issues were accomplished by failing to complete the orders and ship them out the customers. The surplus inventory sitting in the plant and on the machines is a costly expense to the company. Also, it reveals production is higher than…...

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