Team's efforts earned mark: 82

What is your assessment of Jonah's definitions of throughput, inventory, and

operation expense as measures of plant performance? What are the applications in
the services and non-profit sectors?

Jonahs
Definitions
As highlighted in
class, specifying the
difference of
throughput and
operational expense
as a quasi "operating
profit" and viewing
inventory as a quasi
Service
"invested
capital"based
or
definition
(at
operating
assets, then
the ratiothe
of quasi
movies)
operating profit to
quasi operating
assets yields a type of
return on invested
capital (ROIC).
Ultimately, ROIC is
the primary
consideration as to
whether Non-profit
resources
are being productively
definition (at
utilized. This helps to
the Gala)
link The Goal's
financial measures
with Jonah's
operational measures.

$ $ $ $
$ $ $
Throughput is the rate at
which the system generates
money through sales

This response could have been much more

informative had there been greater assessment/
evaluation discussion offered and not just a
restatement of definitions.
For example, practically thinking of throughput as

expense is all the

Inventory
is the
money
thatinventoryOperational
"money coming
in the
system",
as
money the system spends in
the
system
invested
in
"money
tied up
in the system",
and operational
purchasing
items which
expense as "money
leavingitthe system"order
could to turn inventory into
better inform
what is beneficial, not beneficial,
throughput
intends
to sell
etc.

Julie and Rogo handin their tickets is

throughput

Operational
awareness
At the non-profit gala,
raising operations
awareness is throughput

Very interesting
examples. That
said, sometimes
Julie and Rogo are translating Jonah's
The wage of the ticket
definitions
to
noninventory when theyre in
collector is an operational
manufacturing
line for the movie tickets
expense
economic entities
contexts can be
challenging.
Perhaps thinking in
terms of money
coming in/tied up/
leaving the system
is the easiest way
to think
about
Goldratts $50,000
The $1000 donation
check
f the speaking fee is an
is inventory for theadaptations
nondefinitions to those
operational expense
profit
other contexts.

$1000