The Goal- Summary
The book tells us the story of a plant manager, Alex Rogo, who is trying to save his plant, at least show some improvements within 90 days to keep it open. Alex's primary problem is that his plant can not consistently get a quality product out of the plant on time at the cost that can beat the competition. His plant is losing money and if he cannot make it profitable, the management eventually will decide to close the plant. In his fight to save his plant, a physician, Jonah, helps him in achieving his objectives.
Alex, with the help of Jonah, finds that the goal of a manufacturing organization and all organizations in general is to make money. Jonah explains the measurements which express the goal of making money in a different way. These measurements are:
• Throughput
• Inventory, and
• Operational expense
Throughput is defined as the rate at which the system generates money through sales. Inventory is all the money that the system has invested in purchasing things which......
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