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Bearington Plant Essay

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After implementing priority system, he encounters another problem. In the priority system, all the resources work hard. Efficient plant in their principle is a factory where all machines and workers are activated. By running the plant “efficiently”, Alex is facing another problem of excess inventory, and Stacey detects spread bottlenecks. However, their definition of efficient plant is wrong and it is against their goal.

Utilizing and activating a resource are different. By utilizing a resource, a plant runs the system toward the goal. On the other hand, activating a resource does not consider the amount of product a plant really needs to produce. Activating a non-bottleneck to its maximum is an act of maximum stupidity (Goldratt and Jeff 217). After Jonah’s visit, Alex and his colleagues realize that that the level of utilization of non-bottlenecks is determined by constraints in the system which can either be a bottleneck resource or market demand. With the lesson, Bearington plant operates smarter, not harder. The whole process pace is determined by the pace of its bottleneck, NCX-100. The plant makes money but Alex needs more improvement. …show more content…
The results are reduced lead time, faster response time and reduced inventory. Bearington plant now works even more smarter and more productive. With half batch size, number of setup doubles, however it is okay to utilize more on non-bottleneck resources. This does not have negative impact on the system’s output, but reduces idle time at non-bottlenecks. Later, Alex cuts its batch size into half again in order to accomplish sale goals that Bill suggested. This again improves the plant’s overall

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