Transcript of "Eliayahu Goldratt through The goal is th Master in Indusry Teaching with his Self Explainatory Concepts/ Read & Share Session By Mr.Balaji K"
By Eliyahu M. Goldratt & Jeff Cox A Process of ongoing improvement
Goldratt Says: Goal is about 1)New global principles of manufacturing. 2)Easy way of finding the principles & its implementation. <ul><li>About the author: </li></ul><ul><li>Eliyahu Moshe Goldratt (born March 31, 1948) is an Israeli physicist who became a business management guru. </li></ul><ul><li>Eli Goldratt is an educator, author, scientist, philosopher, and business leader. </li></ul><ul><li>But he is, first and foremost, a thinker who provokes others to think. Often characterized as unconventional, stimulating, and "a slayer of sacred cows. </li></ul><ul><li>He obtained his Bachelor of science </li></ul>
Introduction – Alex Personal Life And Problems Happy And Enjoy Mother House Alex House Alex Wife Julie Alex Son David Alex daughter Sharon Hotel and Movie Beach & resort Factory Problem Started Alex Traveling a Lot & Working Hard Alex always Thing about factory Alex Wife taking Care the Family Alex & his Wife always Fighting She started feeling lonely & cries every day Leaving Kids Going Mother House
Plant will be Shut Down in three months, if there is no improvement Dead Line Alex Peach’s Threat to Alex
Mr. Jonah, Alex’s Physics Professor Jonah Plays a role of Angel in Disguise to Alex life
No Meeting with Mr. Jonah at Airport You didn't increase productivity, Have they increased productivity? 36% more money? So your plant uses robots Jonah Sure - 36% in one area Yes for Productivity Conference I'm going to speak at a Robots Alex Then you didn't increase productivity. Did your inventories go down? Did you fire anybody? Did you ship one more product? Not sure. Probably not No But we run at 90% efficiency with a low cost per part. Alex
Alex and Jonah: a conflict <ul><li>Alex: I am running an efficient plant. </li></ul><ul><li>Jonah: You are running an inefficient plant. </li></ul><ul><li>Data </li></ul><ul><ul><li>Machines run 90% of the time. </li></ul></ul><ul><ul><li>Unit costs are low. </li></ul></ul><ul><ul><li>More products are not shipped. </li></ul></ul><ul><ul><li>No one is fired. </li></ul></ul><ul><ul><li>Inventories are high. </li></ul></ul><ul><ul><li>Can't ship on time. </li></ul></ul>
The rate at which the system generates money through Sales All the money that system has invested in purchasing things which intends to sales All the money the system spends in order to Turn inventory into throughput BUSINESS MODEL THE GOAL IS TO MAKE THE MONEY NOW AND IN FUTURE
Learning’s From His Trekking Under stand the Bottleneck Share the Load of the Bottleneck Make the Problem Creator as responsible Dependent events Processes that must first take place before other ones can begin Statistical fluctuations Uncertainties or when one is unable to precisely predict events or quantities Constraints are: Manufacturing Situation
Which is your Bottleneck Machine ? NCX – 10/ Heat treatment Question By Jonah Understanding By Team Discussion to Improve the Plant Why it is Not running Now ? Tea Break Bottleneck Machine Should not be stopped (24 x 7) Are rejections pass through bottleneck machine? Yes Rejection should not be passed through bottleneck operation. Answer By Team Is it possible to off load the bottle neck machine ? Addition of machine to off load the bottleneck operation .
Methodology of operational cost calculation on Bottleneck operation: What is the Operational Cost of NCX-10/Hour? The Answer is Wrong. Is bottleneck m/c affecting to your Shipment? $ 32.50 Why? What is the Operational cost of the plant/Month? Yes $ 1600000 585 Hrs What is the operating Hrs of NCX – 10/Month? Operational Cost per Month For the plant No of Hrs Used /Month Bottle Neck Machine = Actual cost of bottleneck Machine / hr The operating Cost/hr = $ 2735 Alex Conversation B/n Jonah & Stacy.
Actions By Team <ul><li>Agreement with Employee union to run the bottleneck operation in all the break times. </li></ul><ul><li>Inspection introduced before the bottleneck operation. </li></ul><ul><li>Addition of old machines(which were available in the plant) to offload the bottleneck operation. </li></ul><ul><li>New tag system introduced to clear the backlog orders. </li></ul>
Action to clear the backlog orders To Finish the Back Lock Order The Team will introduced A Sticker System Based On the Pending Order No 1O 5 Urgent Material – Top Priority Regular Material – Low Priority New Problem Top Priority Order are Completed and Bottle Neck Machine stopped Because information Given to the operator was only give focus to red stickers Part Team discussed and the Communication given to the operators Focus First to Red 5 If Red Completed Focus on green 1O
Results: Record sales of 57 orders in a Month. (Previous Best was 31 batch/Month) Celebration Enjoyment & Party Peach Alex G OOOO D
Peach Alex plant is performing Very well Good Keep it up Review Meeting in Head office Promotions Name Before After Alex Rogo Plant Manager Divisional VP Bob Production Manager Plant Manager Lou Acounts Group Account Manager Stacy Inventory Controller Production Manager
Three questions to conclude <ul><li>What to change? </li></ul><ul><li>What to change to? </li></ul><ul><li>How to cause change? </li></ul>