The Goal: Summary Of The Production Goal By Alex Rogo

THE GOAL

The book tells the story of Alex Rogo who is the production manager of a factory that is about to be closed. The book deals with many important things such as complex problems of production management, conflicts in the workplace, co-workers' solidarity, global competition and so on.
Identifying the problems of the factory start with the Alex Rogo’s self-questioning about why the company cannot respond to received orders in time. After Alex meet and make a little conversation with his old physic teacher Jonah, he started to ask himself the most important question: What is the ‘goal’? The actual goal had to be more important thing than the delivering the delayed products.

Alex and Jonah both agreed that if these 4 factors are improved, the speed of production will increase, respond to orders will more quickly, and therefore the number of the customers and profitability of the plant will increase. For the lower cycle time, Jonah made a recommendation about reducing the number of work pieces to cut in half that are going to be processed by non-bottleneck machines. This movement would provide some positive results; the investment needed to run the plant would cut in half, the money dedicated to the stock-material will decrease, and it will reduce the costs by taking %50 less goods from suppliers. Another important benefit of reduce the number of work pieces by half is it will shorten the production time. But there are some limitations about this strategy, for example reducing the number of work pieces by half means 2 times more adjustment in terms of labor force and the cost looks as though it’s gone up because of the additional set-ups. Another limitation is about delivery cost, because only high numbers of orders would be benefit from the quantity discount, thus decreasing the batch size will be cause to the increase in the delivery