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Goal - Eliyahu Moshe Goldratt


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summary of chapter 1,2 & 3 of The Goal Book is discussed

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Goal - Eliyahu Moshe Goldratt

  1. 1. The Goal A Process of Ongoing Improvement (Chapter 1,2 & 3)
  2. 2. Presented By Man Mohan Anand MBA (Marketing & Operation) | 2009-11 M.S.Ramaiah Management Institute, Bangalore [email_address]
  3. 3. <ul><li>Born in March 31, 1948 </li></ul><ul><li>an Israeli physicist who became a Business Management Guru </li></ul><ul><li>B.Sc. from Tel Aviv University (TAU), Israel </li></ul><ul><li>M.Sc. Doctorate of Philosophy from </li></ul><ul><li>Bar-Ilan University (BIU), Israel </li></ul><ul><li>An Educator, Author, Scientist, Philosopher & Business Leader. </li></ul><ul><li>He holds a number of patents in the areas from medical devices to drip irrigation to temperature sensors. </li></ul>About The Author Eliyahu Moshe Goldratt
  4. 4. <ul><li>Dr. Eli Goldratt's book “The Goal”, has been a best seller since 1984 and is recognized as one of the best-selling management books of all time. </li></ul><ul><li>The Author has used the Socratic inductive reasoning to teach his Theory Of Constraints </li></ul><ul><li>It is an underground best seller that utilizes a non-traditional approach to convey important business information. </li></ul><ul><li>It has reached a sale of eight million copies. </li></ul><ul><li>This book which is an overall framework for various businesses determine: </li></ul><ul><ul><li>What to change? </li></ul></ul><ul><ul><li>Change to what ? </li></ul></ul><ul><ul><li>How to cause the change? </li></ul></ul>Introduction – The Goal The Goal – An Ongoing Process of Improvement
  5. 5. <ul><li>Story revolves around 38year old young executive – Alex Rogo. </li></ul><ul><li>An Engineering Graduate + MBA. </li></ul><ul><li>Started career in UniCo as project manager and now works under Bill Peach as plant manager in Bearington, his hometown. </li></ul><ul><li>Factory produces machined assemblies. </li></ul><ul><li>Well trained staff led by highly experienced managers. </li></ul>The Goal - Scenario
  6. 6. Story Characters Alex Rogo, Plant Manager Julie, Rogo’s Wife Bill Peach, Vice President Bob Donovan, Production Manager Fran, Rogo’s Secretary Dempsey, Shift Supervisor Martinez, Union Steward
  7. 7. <ul><li>Mr. Rogo, Plant Manager faced a heated situation created by Bill Peach, Vice President who surprisingly demanded the status of Customer Order 41427 </li></ul><ul><li>Order No. 41427 - Order from Bucky Burnside, President of one of UniCo Biggest Customer </li></ul><ul><li>Bill Peach’s Demand – Dispatch the Order No.41427 within 24hrs </li></ul><ul><li>The Bad Luck – Machine NCX-10 was down, Assemblies were missing. </li></ul><ul><li>Peach’s Warning – 3 Months to clear all the backlogs of the plant </li></ul>Chapter-1: Summary
  8. 8. <ul><li>In-house Conflicts between Rogo & his wife Julie </li></ul><ul><li>Total work force was streamlined over Order No. 41427 </li></ul><ul><li>Bottleneck , Overtime, Overworked </li></ul><ul><li>Finally NCX-10 Machine started working by 4:30pm </li></ul><ul><li>Consignment Dispatched by 11pm </li></ul><ul><li>Alex Rogo celebrated with Bob Donovan discussing about how they managed this order no. 41427 </li></ul><ul><li>The Missing Element – Inspite of best technology, best machines, best people, something was missing </li></ul><ul><li>Damn Competition – Earlier Japanese were beating UniCo on Quality and Product Design, Now they were beating UniCo over Price & Delivery </li></ul><ul><li>Self Realization – Rogo gave a thought of his past performance and record and realized his potential that he can clear all backlogs with in 3 months </li></ul>Chapter-2: Summary
  9. 9. <ul><li>Stress Continues – Early Morning Meeting at headquarter held by Bill Peach, Vice President </li></ul><ul><li>The Bad News – The whole division goes up for sale if the performance continue. Deadline – 6 Months </li></ul><ul><li>Result – Sacking of employees including Vice President, Bill Peach </li></ul><ul><li>Meeting Objective – Analysis of Quarter result and performance of each plant under Bill Peach </li></ul><ul><li>New Strategy – How we are going to meet this challenge </li></ul><ul><li>The Answer - The future of the business depends upon the ability to increase productivity </li></ul>Chapter-3: Summary
  10. 10. <ul><li>The Goal - Eliyahu M. Goldratt </li></ul><ul><li> </li></ul><ul><li> </li></ul>References
  11. 11. <ul><li>Thank You </li></ul>