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Analysis of 'The Goal', by Eliyahu Goldratt:

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This 8 page paper provides a detailed analysis of chapters 29-40 of this book about factory management. This paper presents a thorough analysis of the major themes and ideologies presented in this book. Bibliography lists 2 sources.

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8 pages (~225 words per page)

File: D0_GSGoalrt.rtf

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that the plant received. Clearly, the plant would not be able to handle the order of one thousand products over the next two weeks but, on second thought, Alex was able to accommodate this new customer. By reducing batch sizes, productivity greatly increased. Clearly, the reduction of batch sizes provided many benefits, mainly that bottlenecks were all but eliminated, therefore making the plant more efficient. This increase in efficiency allowed for greater productivity, which in turn resulted in increased sales and profit. Yet another benefit of this decrease in batch size was greater worker productivity, which for Alex was an unexpected benefit of implementing this system. Whereas prior to the implementation of smaller batch sizes workers would often be idle, smaller batch sizes forced workers to be more efficient and have their time managed more productively. Unless told otherwise by an expeditor, the materials handlers would wait until an entire batch was completed before moving it. In fact, thats still the case. But now that batches are smaller, the parts are ready to be moved to the next work station sooner than they were before (Goldratt, 1984, p. 238). In the meantime, Alex is concerned that costs appear to actually be going up, since accounting procedures mandate that all figures for the past year be reviewed. Therefore, such a report does not fully represent the newest changes that are indeed more efficient, so Alex and Lou decide to have their report reflect the past two months only, and take their chances that their bosses will find out. Eventually the company accountants do realize what Alex and ...

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