Shared Practice Paper

In this week's Shared Practice, we're comparing and contrasting major approaches to managing and improving organizational performance. This discussion will entail some concepts that organizations normally use which cause its performance to decline. Normally, management viewpoint is that efficiency is the key driver which we'll discuss isn't always the best method to achieve the goal.

Firstly, management normally feel that nothing that nothing should be idle in operations because its not efficient, and cause a decrease in productivity. Unfortunately, this isn't always the case as all can cause a major problem with improving organizational performance. In the Goal, Jonah explains, " that a plant where everybody is always working is inefficient." For instance, if you keep the employees active at all times productivity will be above market demand, therefore causing excess inventory. On the other hand, if employees are idle at times will decease productivity for the amount needed to meet market demand. This is opposite than normal thinking as when employees were idle management would find work the person even if end up producing excess inventory. …show more content…
This is different than normal approaches by management to improve productivity. Normally, this is viewed as decreasing productivity. Importantly, Johan said doing this cause excess inventory to be created as non bottlenecks productivity can be higher than market demand, therefore causing excess inventory. On the hand, if non bottlenecks relies on bottlenecks for work process than it can only produce according to the maximum capacity of the bottlenecks. For instance, if the bottleneck can only produce 300 hours than the non bottleneck can only process 300 hours of productivity as its work flow depends on the bottleneck. The bottleneck should control inventory which is to satisfy market