The Goal: a process of Ongoing Improvement

sales.’’
I write it down word for word.
Then I ask, "But what about production? Wouldn’t it be more correct to say

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—’’
"No,’’ he says. "Through 
sales—
not production. If you produce something,
but don’t sell it, it’s not throughput. Got it?’’ "Right. I thought maybe
because I’m plant manager I could substitute—’’
Jonah cuts me off.
"Alex, let me tell you something,’’ he says. "These definitions, even though
they may sound simple, are worded very precisely. And they should be; a
measurement not clearly defined is worse than useless. So I suggest you
consider them carefully as a group. And remember that if you want to change
one of them, you will have to change at least one of the others as well.’’
"Okay,’’ I say warily.
"The next measurement is inventory,’’ he says. "Inventory is all the money
that the system has invested in purchasing things which it intends to sell.’’
I write it down, but I’m wondering about it, because it’s very different from
the traditional definition of inventory.
"And the last measurement?’’ I ask.
"Operational expense,’’ he says. "Operational expense is all the money the
system spends in order to turn inventory into throughput.’’
"Okay,’’ I say as I write. "But what about the labor invested in inventory?
You make it sound as though labor is operational expense?’’
"Judge it according to the definitions,’’ he says.
"But the value added to the product by direct labor has to be a part of
inventory, doesn’t it?’’
"It might be, but it doesn’t have to be,’’ he says.
"Why do you say that?’’

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"Very simply, I decided to define it this way because I believe it’s better not
to take the 
value 
added into account,’’ he says. "It eliminates the confusion
over whether a dollar spent is an investment or an expense. That’s why I
defined inventory and operational expense the way I just gave you.’’
"Oh,’’ I say. "Okay. But how do I relate these measurements to my plant?’’
"Everything you manage in your plant is covered by those measurements,’’
he says.
"Everything?’’ I say. I don’t quite believe him. "But going back to our
original conversation, how do I use these measurements to evaluate
productivity?’’
"Well, obviously you have to express the goal in terms of the
measurements,’’ he says, adding, "Hold on a second, Alex.’’ Then I hear him
tell someone, "I’ll be there in a minute.’’
"So how do I express the goal?’’ I ask, anxious to keep the conversation
going.
"Alex, I really have to run. And I know you are smart enough to figure it out
on your own; all you have to do is think about it,’’ he says. "Just remember
we are always talking about the organization as a whole—not about the
manufacturing department, or about one plant, or about one department
within the plant. We are not concerned with local optimums.’’
"Local optimums?’’ I repeat.
Jonah sighs. "I’ll have to explain it to you some other time.’’
"But, Jonah, this isn’t enough,’’ I say. "Even if I can define the goal with
these measurements, how do I go about deriving operational rules for running
my plant?’’
"Give me a phone number where you can be reached,’’ he says.

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I give him my office number.
"Okay, Alex, I really do have to go now,’’ he says.
"Right,’’ I say. "Thanks for—’’
I hear the click from far away.
"—talking to me.’’
I sit there on the steps for some time staring at the three definitions. At some
point, I close my eyes. When I open them again, I see beams of sunlight
below me on the living room rug. I haul myself upstairs to my old room and
the bed I had when I was a kid. I sleep the rest of the morning with my torso
and limbs painstakingly arranged around the lumps in the mattress.
Five hours later, I wake up feeling like a waffle.

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9
It’s eleven o’clock when I wake up. Startled by what time it is, I fall onto
my feet and head for the phone to call Fran, so she can let everyone know I
haven’t gone AWOL.
"Mr. Rogo’s office,’’ Fran answers.
"Hi, it’s me,’’ I say.
"Well, hello stranger,’’ she says. "We were just about ready to start checking
the hospitals for you. Think you’ll make it in today?’’
"Uh, yeah, I just had something unexpected come up with my mother,
kind of an emergency,’’ I say.
"Oh, well, I hope everything’s all right.’’
"Yeah, it’s, ah, taken care of now. More or less. Anything going on that I
should know about?’’
"Well...let’s see,’’ she says, checking (I suppose) my message slips. "Two of
the testing machines in G-aisle are down, and Bob Donovan wants to know if
we can ship without testing.’’
"Tell him absolutely not,’’ I say.
"Okay,’’ says Fran. "And somebody from marketing is calling about a late
shipment.’’
My eyes roll over.
"And there was a fist fight last night on second shift . . . Lou still needs to talk

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to you about some numbers for Bill Peach ...a reporter called this morning
asking when the plant was going to close; I told him he’d have to talk to you .
. . and a woman from corporate communications called about shooting a
video tape here about productivity and robots with Mr. Granby,’’ says Fran.
"With