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had extra capacity, or time when nothing was being run on the machine. With the extra time, these processes have the time to do extra set-ups, thereby allowing the smaller batches. Instead of running very large batches of one part, and having parts destined for bottlenecks waiting behind it, you start doing smaller batches, increasing the number of deliveries between processes (this amounts to beginning a just-in-time inventory scheme). The extra set-ups don’t cost any extra in labor, because the processes were no longer being run at full capacity. The plant in The Goal was only running at capacity equal to throughput demand. By reducing batch sizes, they reduced the time it takes to process a batch, This also means reduced queue time and wait time, thereby reducing inventory. With less time sitting in piles waiting, total process time and overall lead-time is shortened. With a shortened lead-time, the whole production process is able to respond to market demand faster (Goldratt).

In the book, Rogo came to a lot of his decisions simply by paying attention to everyday life. One of the most important and influential discoveries was learning about bottlenecks. He found his bottlenecks in his plant simply by going on a hike with his young son’s Boy Scout troupe. He observed that Herbie, a larger boy who had trouble keeping up with the others. The other boys walked around him leaving him in the back of the pack. This put the fastest walkers way out ahead, leaving Herbie (and those behind him) behind. Soon, Rogo gets the idea of what’s happening and decides to unload the extra pressures off Herbie (the excess weight in his backpack) by spreading the job among the other boys. Then he puts Herbie in front of the troupe, and tells the other boys that no one is permitted to pass Herbie. At this point, he realizes that the rest of his plant must follow the bottlenecks or the “Herbies” as they call them throughout the book. Each “Herbie” has to work to its fullest capacity, while the rest of the plant’s machines work to the capacity of the bottlenecks. This creates a harmony in the plant, orders start to get out on time, there is less work-in-process, and costs are lowered because of this.

By following these processes outlined above, the plant was able to save itself from certain closure. Rogo was able to hold on to his job, and actually gain a promotion giving him control over all the plants in this division. He would now have to bring this same style of management to the entire division.



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