goal - Given the right question , not answer tells the...

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Given the right question , not answer tells the fictional story of Alex Rogo, a plant manager for UniCo Manufacturing, whose plant is performing poorly and is given three months to significantly improve or face a shut down of the entire plant. life of an operations manager and challenges common business practices and thought processes. Basically, people aren't questioning the things that they are being told are true. In Alex's case, it is assumed that if operating costs per unit are down and efficiencies are up then the company is being productive. However, these measurements neglect the bottom line. They should be less concerned with measurements that do not contribute to the success and profitability of the company. Basically what the authors are saying is that managers should exercise common sense in their decisions. Unico's concern over having a low cost per unit is a prime example of how a company's management can lose sight of what is really important. Although it is good to reduce costs, it comes at a cost to the company because they are not increasing throughput, which leads to an increase in sales and they aren't focused on reducing their inventories, which also provides substantial cost savings. OC process seeks to identify the constraint and restructure the rest of the organization around it . Number 1 for Goal 1Is toknow the goal of the company( making money, finding the critical to quality 2Goal of making money are three things, but don’t’ misleading the productivity definition Throughput is the rate at which the system generates money through sales. Inventory is all the money that the system has invested in purchasing things it intends to sell. Operational expense is all the money the
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This note was uploaded on 06/04/2011 for the course ECON dsfd taught by Professor Dsfd during the Spring '11 term at Purdue University-West Lafayette.

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goal - Given the right question , not answer tells the...

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