The Goal By Alex Rojo

How did Eisner do this and how did he increase net income in his first four years?

Jonah asks Alex if the robots have increased the amount of products shipped per day. Secondly, he asks if the robots have reduced the plants people expense. Finally, Jonah asks if the robots have decreased the amount of inventory that the plant has.

The main character in “The Goal”, Alex Rogo, manages a production plant that is unprofitable and not efficient with its resources. Alex is given a short amount of time to turn the operations at the plant around and make it an efficient, successful production plant. Throughout the book, Alex Rogo speaks to Jonah a number of times and learns a great amount of information from him. The first significant time that Alex and Jonah spoke was during their chance meeting at an airport lounge. During this conversation, Alex learned a great deal about productivity and goal setting. Jonah explains to Alex that a company has one goal and that the manager must be open about the goal. Jonah then discusses the definition of productivity with Alex and tells him that the true definition is bringing a company closer to its goal that it has set. Among these concepts that Alex learned, he also learned more about his own management style and how it could be improved. Alex learned that he must question common concepts regarding managing and that he must think differently in order to be successful.

At this point the factory is operating at a capacity like never before. They have been shipping a record number of orders in a record amount of time. All of the orders past the shipping date have been completed and shipped. They are now shipping current orders on-time and early in in some cases. Now that the plat is responding better to market demands, Alex can focus on sales throughput, and gets the division sales manager, Johnny Jons, to market his plant's improved capacity. Together they manage to tie down a major contract

It is stressed in the Goal that there is a massive difference between throughput and efficiency. The novel makes the case that having an efficient operation does not equate to profitability. What does equate to profitability is to increase the throughput of any given operations system. Jonah tells Alex, “Throughput, is the rate in which the system generates money through sales.” (Goldratt, E.M. (2014), The Goal, pg. 60). Jonah goes on to explain to Alex that inventory is all the money that was invested in purchasing things that the system intends to sell. (Id). Furthermore, operational expenses are those costs that are required to turn inventory into throughput. (Id, at pg. 61). The definitions of these three measurements are not standard definitions for an MBA student. It is an interesting perspective on how to view operations.

In this company, the CEO, Harold Redd, was driven to implement some change because the organization consisted of workers who only had basic skills in computer assembling and troubleshooting. Given that the company had very few

Jonah asks Alex if the robots have increased the amount of products shipped per day. Secondly, he asks if the robots have reduced the plants people expense. Finally, Jonah asks if the robots have decreased the amount of inventory that the plant has.

Throughout the entirety of the book, The Goal: A Process of Ongoing Improvement, author Eliyahu M. Goldratt focuses on demonstrating the importance of the Theory of Constraints and what corporations should do in order to increase profits. A major term used throughout the novel is “throughput,” which according to the text, is “the rate at which the system generates money through sales” (Goldratt 60). Once a bottleneck machine in a production process is identified, there are multiple ways to increase throughput without expanding the physical capacity of the machine.

Alex stumbles upon his old professor Jonah, who introduced him to the theory of constraint. Jonah states three essential tools of measurement for everything in the plant "Throughput is the rate at which the system generates money through sales."; "Inventory is all the money that the system has invested in purchasing things which it intends to sell"; and "Operational expense is all the money the system spends in order to turn inventory into throughput" (Goldratt & Cox, 1984, pp. 60-61). These new ideas create a puzzle for Alex: What is the goal of Unico manufacturing plant? He keeps wandering and drifting his thought about what the goal of his plant is. After food and beer, it strikes Alex that the ultimate goal is to make money (Goldratt & Cox, 1984, p. 41). In order to make more money for the plant there should be an increase in throughput and a decrease in inventory as well

Despite his many efforts to tighten operations while continuing to grow the business, the new

Alex tells Jonah of the problems at the plant and the three months in which to fix them. Jonah says they can be fixed in that time and then they go over the problems the plant has. First, Jonah tells Alex to forget about the robots. He also tells Alex that "A plant in which everyone is working all the time is very inefficient." Jonah suggest that Alex question how he is managing the capacity in the plant and consider the concept of a balanced plant. According to Jonah, this "is a plant where the capacity of each and every resource is balanced exactly with demand from the market."

using their own core competencies to turn the airline around. By applying their own strategies,

He told Jonah that the plant he is working with installed some robots that have increased productivity by 36%. Jonah replied with “so your company is making 36% more money from your plant, just by installing some robots?” Alex said no and Jonah asked again “was your plant able to ship even one more product per day as a result of what happened in the departments where the robots were installed?” Alex answered again with a no while Jonah asked again if the plant has fire anybody and if the inventories go down but Alex’s answers are no. Jonah again asked “with such high efficiencies you must be running your robots constantly? Alex said yes and Jonah continued with predictions that the plant’s inventory is very high and Alex’s plant can not deliver products on time. Jonah added that Alex thinks he is running an efficient plant but he is not.

Hassan’s goals are to use to use his talent for cooking and make a lucrative restaurant wherever his Grandfather takes him. After his restaurant in India was no more he needs to find something to supply enough money to his whole family. Hassan tries to use his talent and make a lot of money, but later after tragic events, Hassan realizes that he must go back to the restaurant and support his family.

Alex took a decision to stay in his position for the next three months and started looking for Jonah. Alex got Jonah’s phone number from his friend who knows about Jonah. Alex talked with Jonah eventually. The conversation with Jonah helped Alex to define the main goal of the company, Making Money, and put some measurements to evaluate his progress toward the goal. The three measurements are: throughput, inventory and operational expenses. Also, Jonah has an opinion about the robots in the plant. He thought that robots do not increase