Goal Paper 16 to 30

Words: 1029
Pages: 5

1. Why did Jonah suggest “balance the flow with demand” instead of “balance capacity with demand”? How does Jonah define "bottleneck resource"? Is bottleneck a bad thing to have? How did Alex identify the bottleneck resources in his plant? Why was he not able to compare the demand with the capacity to determine bottlenecks?

Jonah suggested “balance the flow with demand” instead of “balance capacity with demand” because capacity of the plant is equal to the capacity of its bottlenecks and it would make flow through bottlenecks a little less than the market’s demand. Jonah defines “bottleneck resource” as “any resource whose capacity is equal to or less than the demand placed upon it.” Bottlenecks are neither bad nor good; they just are
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Mandatory break times could also be the bottleneck for making improvements.

5. Use the robot example to explain why “the sum of local optimums is not equal to the global optimum”? Identify a similar example from an organization?
The idea behind “the sum of local optimums is not equal to the global optimum” is that allowing one department, machine, or division to produce at its maximum does not result or equal a production plant operating at its maximum or its most efficient. We can see this with the robot example because the robot is a non-bottleneck resource allowing it to produce at such high levels does not actually improve the overall plant. In fact, attempting to create no idle time for the robot actually increases inventories greatly and decreases throughput overall creating an unsuccessful/productive production plant. A similar example from an organization could be in a production line where employees are set to strict schedules to be the most productive and keep moving in an assembly line that produces cars. When the step of painting the car is the bottleneck and takes longer, it is not good to have the step ahead in the assembly line continuously create work-in-process for the painters because this doesn’t create efficient flow and increases inventories and operating expenses; therefore, the main goal of the global optimum is not being met.
6. Even with the