Chapter Summary Of Alex Rogo's The Goal

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This book is about Alex Rogo, who recently moves back to his hometown to be a plant manager. The book starts off with Alex and his boss Mr. Peach, the Divisions Vice President having a conflict over an overdue order #41427. Mr. Peach wants the order to be shipped today (which it does) and tells Alex he needs to increase productivity of the plant or he will shut it down in three months. After the order is shipped and a few days have passed Mr. Peach find out from upper management that if his division does not improve within a year they will sell his division and he will be out of a job. Following this information, Mr. Peach calls a meeting for everyone in his division. Mr. Peach tells everyone that things are bad and that he and everyone else under his supervision needs …show more content…

So, this is exactly what Alex does. Alex talks to Jonah and Jonah tells him everything in a company can be classified under three term, throughput, inventory and operational expenses. Alex goes back to his office and shares this information with a man from production and a lady from accounting. They all come to the conclusion that “throughput is the 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.” Alex meets once again with Jonah. Alex tells Jonah I need my problem fixed in three months, is this possible? Jonah responds yes, but you need to focus on “dependent events” and “statistical fluctuations.” Alex doesn’t quite understand how these two events affect the company until he spends the weekend on a hiking trip. On one side he figures out the role dependent events and statistical fluctuations play on his company. But, when he returns home he finds that his struggling marriage has reached a breaking point and his wife has left

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