The Goal
Chapter 10
What title would you give this
chapter?
Write a 10-sentence summary of
the chapter. Use specific
character names, and specific
events that occurred.
3-5 unfamiliar or not very familiar
words (add their definition, or
ever a picture to show what they
are)
Powerful quote from this chapter
and why you chose it
Historical or current event
connection
Personal Comments/Insights
CLAVO, Jaira Micah P. | BSA52
Alex and his team (Bob Donovan from production, Lou from accounting
and Stacey from inventory control) reviewed the meaning of throughput,
inventory and operating expense until everyone was satisfied. Lou,
summarizes them as follows. "Throughput is money coming in. Inventory
is the money currently inside the system. And operational expense is the
money we have to pay out to make throughput happen." Bob remains
skeptical that everything can be accounted for with just three
measurements. But Lou explained that machines, tooling and the whole
the building are all just different forms of inventory. Stacey remarked, "So
investment is the same thing as inventory." Together they decide that
something drastic must be done with the machines. Machines are
unproductive and counter-effective all at the same time. Their dilemma is
how to achieve their goal without decreasing efficiencies. They call Jonah
in search of answers but Jonah asked Alex to speak and visit him New
York.
 sheepishly - in an embarrassed manner due to shame or a lack of
self-confidence.
 lousy - very poor or bad; disgusting.
 chauffeur – a person employed to drive a private or rented
automobile.
 counter-productive - having the opposite of the desired effect.
“"And in order for the corporation to make money, the value of the
product—and the price we're charging—has to be greater than the
combination of the investment in inventory and the total operational
expense per unit of what we sell."