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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.  ,[object Object],[object Object],[object Object],[object Object],[object Object]
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 ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
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  ,[object Object],[object Object],[object Object],[object Object]
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 ,[object Object],[object Object],[object Object]
END

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Eliayahu Goldratt through The goal is th Master in Indusry Teaching with his Self Explainatory Concepts/ Read & Share Session By Mr.Balaji K

  • 1.
  • 2. By Eliyahu M. Goldratt & Jeff Cox A Process of ongoing improvement
  • 3.
  • 4.
  • 5. 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
  • 6. Plant will be Shut Down in three months, if there is no improvement Dead Line Alex Peach’s Threat to Alex
  • 7. Mr. Jonah, Alex’s Physics Professor Jonah Plays a role of Angel in Disguise to Alex life
  • 8. 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
  • 9.
  • 10. 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
  • 11.
  • 12. 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
  • 13. 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 .
  • 14. 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.
  • 15.
  • 16. 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
  • 17. Results: Record sales of 57 orders in a Month. (Previous Best was 31 batch/Month) Celebration Enjoyment & Party Peach Alex G OOOO D
  • 18. 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
  • 19.
  • 20. END