Question

(From 'The Goal' by Eliyahu M. Goldratt)

A) Alex Rogo learned a lot about managing his plant on the Boy Scout hiking trip. Give 3 examples of problems he encountered on the hike. Describe how he handled them and what new insights about his plant he received from them.

B) For each example you gave in the part A, describe how Alex applied a similar strategy in his plant.

Answer 1

Alex Rogo founded a company name under Unico, during managing his plant on the boy Scout he encountered below 3 problem.

1. Everything is Late

2. Working on Overtime

3. Not making money

He Handled them and accept the challenges and did below points and also he understand that.

productivity is meaningless unless you know a goal

products the high inventories and late orders

Net profit needs to increase along with increasing ROI and Cash flow as well.

Alex has applied similar strategy in his plan by.

1. Throughput : The rate at which the system generates money through sales money coming in

2. Inventory : The money that system has invested in purchasing things which it intends to sell.

3. Operational Expenses : All the money the system spends in order to turn inventory into throughput.

4. dice game/match bowl experiment showed that because of statistical fluctuations and depended events throughput events goes down and  inventory goes up

5. Alex use FIFO - first in first out method

6. Alex cut the batch sizes in half, half the work in progress on the floor smaller batches sizes would result in less wait time.

7. He used EBQ- Economical batch quantity

These are basic step which Alex has taken.