Samuel Martinez
February 17, 2016
BUAD 311 T-TH 12:00pm
The Goal Analysis
The goal is primarily about a manager named Alex Rogo who is charge of a production plant that is unsuccessful at both making profits and handling its resources. Given the failures of the plant, Alex is told that he has a short period of time to completely turn the plant around. The novel is primarily about Alex’s interactions with Jonah, and more importantly, the lessons that Alex is able to take away every time they converse. The first conversation that Alex and Jonah have is in an airport lounge. During their conversation, Jonah guides Alex to realize that every company or plant has to have a goal to strive for. While Alex initially believes that productivity is …show more content…
During this conversation Jonah stresses the importance of a balanced plant. A balanced plant is where the capacity of each resource is balanced and matched precisely with the demand from the market. Even though Alex initially believes that it is a positive idea to have a balanced plant, Jonah eventually teaches him that this is not the case. Running a balanced plant will result in several negative side effects including lower throughput, higher inventory, and lastly higher operational expenses. Jonah tells him that the key to improving each of these measurements is taking a holistic approach. Instead of looking at them on a stand-alone basis, Alex should look to improve all of them at …show more content…
During their previous conversation Jonah had introduced the concept of dependent events and statistical fluctuations. The first key takeaway from dependent events is that when events are dependent on one another, the best approach is to improve the process as a whole. Secondly Jonah tells Alex that statistical fluctuations can cause certain resources to have either higher or lower capacities. Additionally Jonah also introduces the concept what a bottleneck resource. He defines the bottleneck as the resource who whose capacity is equal or less than the demand for that resource. Continuing to build on each of Jonah’s lessons, Alex deduces that the bottleneck’s capacity must equal the market’s demand. The fifth conversation that Alex and Jonah have is when Jonah personally visits the plant. Once again building on their previous conversation, he tells Alex that in order to increase the plant’s capacity, the bottleneck’s capacity needs to be increased because it is what determines it. He stresses the importance of ensuring that the bottleneck is properly maintained so flow times are not wasted. If possible, money should be invested into the bottleneck because it will increase the process capacity and in turn increase
February 17, 2016
BUAD 311 T-TH 12:00pm
The Goal Analysis
The goal is primarily about a manager named Alex Rogo who is charge of a production plant that is unsuccessful at both making profits and handling its resources. Given the failures of the plant, Alex is told that he has a short period of time to completely turn the plant around. The novel is primarily about Alex’s interactions with Jonah, and more importantly, the lessons that Alex is able to take away every time they converse. The first conversation that Alex and Jonah have is in an airport lounge. During their conversation, Jonah guides Alex to realize that every company or plant has to have a goal to strive for. While Alex initially believes that productivity is …show more content…
During this conversation Jonah stresses the importance of a balanced plant. A balanced plant is where the capacity of each resource is balanced and matched precisely with the demand from the market. Even though Alex initially believes that it is a positive idea to have a balanced plant, Jonah eventually teaches him that this is not the case. Running a balanced plant will result in several negative side effects including lower throughput, higher inventory, and lastly higher operational expenses. Jonah tells him that the key to improving each of these measurements is taking a holistic approach. Instead of looking at them on a stand-alone basis, Alex should look to improve all of them at …show more content…
During their previous conversation Jonah had introduced the concept of dependent events and statistical fluctuations. The first key takeaway from dependent events is that when events are dependent on one another, the best approach is to improve the process as a whole. Secondly Jonah tells Alex that statistical fluctuations can cause certain resources to have either higher or lower capacities. Additionally Jonah also introduces the concept what a bottleneck resource. He defines the bottleneck as the resource who whose capacity is equal or less than the demand for that resource. Continuing to build on each of Jonah’s lessons, Alex deduces that the bottleneck’s capacity must equal the market’s demand. The fifth conversation that Alex and Jonah have is when Jonah personally visits the plant. Once again building on their previous conversation, he tells Alex that in order to increase the plant’s capacity, the bottleneck’s capacity needs to be increased because it is what determines it. He stresses the importance of ensuring that the bottleneck is properly maintained so flow times are not wasted. If possible, money should be invested into the bottleneck because it will increase the process capacity and in turn increase