Book Summary "The Goal" Processes and Operations

Topics: Expense, The Conversation, Operating expense Pages: 3 (1060 words) Published: March 31, 2013
Book Summary "The Goal" Processes and Operations

Key Idea
The main message of the book is that the proper way to manage any operation, whether it’s a manufacturing plant or a web design shop or a clothing store, is to: 1) Identify what needs to be changed. 2) Identify what it should be changed to. 3) Identify how to execute the change. Summary

This story is based around the life of Alex Rogo, Plant Manager for Uniware, which is a division of Unico. After some very upsetting customer approaches Alex’s boss, Bill Peach, is given a challenge to turn the plant around in three months. Due to the limited amount of time available, there are not many outside tools available such as consultants, surveys, and so on. With very few hopes, Alex foresees the inevitable until he remembers his conversation with Jonah, a physicist who Alex knew from a previous job. It is not until Alex’s job is in at risk that he decides to devour into his conversation with Jonah. During the conversation, Jonah asks him several questions to analyze his company’s situation. The conversation leads ultimately to the question, "What is the goal of any business?" After rethinking his conversation, Alex realizes that the goal of any business is to make money. Furthermore, if the goal is to make money any action toward this goal is considered productive and any action not moving towards the goal is nonproductive. Alex was unsure of such a simple answer and decided to contact Jonah to continue the search for more answers. Once Alex contacts Jonah they define the following measurements to define the success of any plant’s production: 1) Throughout = rate that the system is used to generate money through sales. This measurement would consist of what a product would be worth when sold at market value after deducting operational expense and inventory. 2) Inventory = all the money invested in purchasing items that will be sold. This could include the remains of their machines after being used toward...
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