Goal Report

Understanding the Goal |

Application of the theory of constraints |

Christopher Wilson |

02/09/2013

BADM635 – 0 Spring 2013

02/09/2013

BADM635 – 0 Spring 2013

The basis of the novel, The Goal: A Process of Ongoing Improvement revolves around the life of Alex Rogo. Rogo is the Plant Manager for Uniware a division of a company called Unico. Rogo’s problems arise after and upset customers contacts Rogo’s boss, Bill Peach, complaining that their order is overdue by several weeks and they are not happy. Once Rogo is confronted by Peach, Peach informs Rogo that he does not see any reason to keep his plant open. They are behind on almost every order, they are in the red in terms of profit and he is going to make a recommendation to close the plant. Rogo pleads with Peach to give him time to turn the plant around and show an improvement. Peach offers Rogo three months to show some type of improvement or his recommendation will stand. Due to the limited amount of time available, there are not many outside tools available such as consultants, surveys, etc. With very few hopes, Rogo foresees the inevitable until he remembers his conversation with Jonah, a physicist Rogo knew from a previous job.

When Rogo determines that there is no hope for his plant and he feels that all is lost, he remembers the conversation that he had with Jonah while waiting for a flight. During the conversation, Jonah inquires a series of questions to analyze how well Rogo’s plan is actually performing. The reason for this is because Rogo has informed Jonah that the plant has just installed robots to help with efficiencies and they plant is performing better than excepted because they efficiencies are up over 36% in one department alone (Goldratt, 27). However, Jonah does not believe that the plant is actually performing as well as Rogo believes. Through their conversation, Jonah presents his ultimate question to Rogo, “What is the goal of any business?”(Goldratt, 32)....