The book describes the Theory of Constraints through the story of Plant Manager Alex Rogo
Author : Eliyahu M. Goldratt and Jeff Cox
The story is about Alex Rogo, a manufacturing plant manager who works at a plant which is not performing well despite installing CNC robots. Alex wants to find the answer as to why his plant is not doing well despite all the automation. In his quest to find the answers he meets Jonah, his mentor.
Jonah tell him that he should work on the following factors in order to make his plant a profitable one:
1. Reduce Inventory
2. Reduce Operating Expense
3. Increase throughput
The Theory of Constraints has five distinct steps:
1. Identify the constraint
2. Exploit the constraint (or bottleneck) by keeping it running and maximize its output as much as possible
3. Subordinate. Get everything to run at a pace that keeps up to the bottleneck, to avoid inventory jams.
4. Elevate. Increase the throughput of the constraints no matter the costs since they limit the entire system throughput.
5. Repeat with new constraints. As constraints are improve, new constraints will emerge, repeat with these next.
I highly recommend this book for every management student as well as any engineer working in the production & manufacturing sector.
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