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The Goal

E.M. Goldratt

A Process of Ongoing Improvement


I come through the gate this morning at 7:30 and I can see it from across the lot: the crimson Mercedes. It's parked beside the plant, next to the offices. And it's in my space. Who else would do that except Bill Peach? Never mind that the whole lot is practi- cally empty at that hour. Never mind that there are spaces marked "Visitor." No, Bill's got to park in the space with my title on it. Bill likes to make subtle statements. So, okay, he's the divi- sion vice-president, and I'm just a mere plant manager. I guess he can park his damn Mercedes wherever he wants.

I put my Mazda next to it (in the space marked "Controller"). A glance at the license as I walk around it assures me it has to be Bill's car because the plate says "NUMBER 1." And, as we all know, that's absolutely correct in terms of who Bill always looks out for. He wants his shot at CEO. But so do I. Too bad that I may never get the chance now.

Anyway, I'm walking up to the office doors. Already the adrenalin is pumping. I'm wondering what the hell Bill is doing here. I've lost any hope of getting any work done this morning. I usually go in early to catch up on all the stuff I'm too busy to do during the day, because I can really get a lot done before the phone rings and the meetings start, before the fires break out. But not today.

"Mr. Rogo!" I hear someone calling.

I stop as four people come bursting out of a door on the side of the plant. I see Dempsey, the shift supervisor; Martinez, the union steward; some hourly guy; and a machining center fore- man named Ray. And they're all talking at the same time. Demp- sey is telling me we've got a problem. Martinez is shouting about how there is going to be a walkout. The hourly guy is saying something about harassment. Ray is yelling that we can't finish some damn thing because we don't have all the parts. Suddenly I'm in the middle of all this. I'm looking at them; they're looking at me. And I haven't even had a cup of coffee yet.

When I finally get everyone calmed down enough to ask what's going on, I learn that Mr. Peach arrived about an hour before, walked into my plant, and demanded to be shown the status of Customer Order Number 41427.


Well, as fate would have it, nobody happened to know about Customer Order 41427. So Peach had everybody stepping and fetching to chase down the story on it. And it turns out to be a fairly big order. Also a late one. So what else is new? Everything in this plant is late. Based on observation, I'd say this plant has four ranks of priority for orders: Hot... Very Hot... Red Hot... and Do It NOW! We just can't keep ahead of anything.

As soon as he discovers 41427 is nowhere close to being shipped, Peach starts playing expeditor. He's storming around, yelling orders at Dempsey. Finally it's determined almost all the parts needed are ready and waiting-stacks of them. But they can't be assembled. One part of some sub-assembly is missing; it still has to be run through some other operation yet. If the guys don't have the part, they can't assemble, and if they can't assem- ble, naturally, they can't ship.

They find out the pieces for the missing subassembly are sitting over by one of the n/c machines, where they're waiting their turn to be run. But when they go to that department, they find the machinists are not setting up to run the part in question, but instead some other do-it-now job which somebody imposed upon them for some other product.

Peach doesn't give a damn about the other do-it-now job. All he cares about is getting 41427 out the door. So he tells Dempsey to direct his foreman, Ray, to instruct his master machinist to forget about the other super-hot gizmo and get ready to run the missing part for 41427. Whereupon the master machinist looks from Ray to Dempsey to Peach, throws down his wrench, and tells them they're all crazy. It just took him and his helper an hour and a half to set up for the other part that everyone needed so desperately. Now they want to forget about it and set up for something else instead? The hell with it! So Peach, always the diplomat, walks past my supervisor and my foreman, and tells the master machinist that if he doesn't do what he's told, he's fired. More words are exchanged. The machinist threatens to walk off the job. The union steward shows up. Everybody is mad. Nobody is working. And now I've got four upset people greeting me bright and early in front of an idle plant.

"So where is Bill Peach now?" I ask.

"He's in your office," says Dempsey.

"Okay, would you go tell him I'll be in to talk to him in a minute," I ask.


Dempsey gratefully hurries toward the office doors. I turn to Martinez and the hourly guy, who I discover is the machinist. I tell them that as far as I'm concerned there aren't going to be any firings or suspensions-that the whole thing is just a misunder- standing. Martinez isn't entirely satisfied with that at first, and the machinist sounds as if he wants an apology from Peach. I'm not about to step into that one. I also happen to know that Martinez can't call a walkout on his own authority. So I say if the union wants to file a grievance, okay; I'll be glad to talk to the local president, Mike O'Donnell, later today, and we'll handle every- thing in due course. Realizing he can't do anything more before talking to O'Donnell anyway, Martinez finally accepts that, and he and the hourly guy start walking back to the plant.

"So let's get them back to work," I tell Ray.

"Sure, but uh, what should we be working on?" asks Ray. "The job we're set up to run or the one Peach wants?"

"Do the one Peach wants," I tell him.

"Okay, but we'll be wasting a set-up," says Ray.

"So we waste it!" I tell him. "Ray, I don't even know what the situation is. But for Bill to be here, there must be some kind of emergency. Doesn't that seem logical?"

"Yeah, sure," says Ray. "Hey, I just want to know what to do."

"Okay, I know you were just caught in the middle of all this," I say to try to make him feel better. "Let's just get that setup done as quick as we can and start running that part."

"Right," he says.

Inside, Dempsey passes me on his way back to the plant. He's just come from my office and he looks like he's in a hurry to get out of there. He shakes his head at me.

"Good luck," he says out of the corner of his mouth.

The door to my office is wide open. I walk in, and there he is. Bill Peach is sitting behind my desk. He's a stocky, barrel-chested guy with thick, steely-gray hair and eyes that almost match. As I put my briefcase down, the eyes are locked onto me with a look that says This is your neck, Rogo.

"Okay, Bill, what's going on?" I ask.

He says, "We've got things to talk about. Sit down."

I say, "I'd like to, but you're in my seat."

It may have been the wrong thing to say.


"You want to know why I'm here?" he says. "I'm here to save your lousy skin."

I tell him, "Judging from the reception I just got, I'd say you're here to ruin my labor relations."

He looks straight at me and says, "If you can't make some things happen around here, you're not going to have any labor to worry about. Because you're not going to have this plant to worry about. In fact, you may not have a job to worry about, Rogo."

"Okay, wait a minute, take it easy," I say. "Let's just talk about it. What's the problem with this order?"



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