Paper

Submitted by: Submitted by

Views: 111

Words: 484

Pages: 2

Category: Other Topics

Date Submitted: 09/29/2013 03:35 PM

Report This Essay

1. Summary

Alex Rogo is the main character of the book, and he is the plant manger of a UniWare Division. The plant has not been profitable, and Alex is informed that the plant may close, unless there are improvements. Alex decides he is going to keep the plant going. In order to turn the plant around, Alex contacts Jonah. Jonah gives Alex advice. Some of which is unwanted. Alex gets upset because he feels that Jonah is just a scientist.

Alex finds out that Jonah has been an independent consultant to businesses to help them be more productive. Alex and Jonah talk and meet several times, and Jonah explains his business model to Alex. He gives Alex definitions to examine plant structures. He also tells how to look at thinks that determine the success of the business.

  At the heart of Jonah’s business model are three definitions: throughput, or “the rate at which the system generates money through sales,” inventory, or “all the money that system has invested in purchasing things which it intends to sells,” and operational expense , or “all the money the system spends in order to turn inventory into throughput.” Using these definitions, Alex always has a basis to determine if his decisions are helping the plant move towards the goal. The goal of the plant is to make money, which is characterized by increasing throughput and decreasing inventory and operational expense.

The book goes through Alex’s work and home life. It goes into his life setbacks. However, through hard work and with the use of a skilled team and Jonah’s help, Alex is able to make the plant the most productive one within the UniWare Division. Alex is promoted to lead the UniWare division as president and use Jonas business model all through the division.

2.

1. Throughput – the rate at which the system generates money through sales

2. Inventory – all the money that the system has invested in purchasing things which it intends to sell

3. Operational Expense – all the money the...