1 Pararagh Response To 2 Colleagues Post. Wk5D2
These are Instructions from last week just to give you a heads up on what’s going on. The Assignment Instructions are below highlighted in Red.
As a manager, much of your work requires analyzing complex situations, which in turn requires critical thinking skills. These skills may include determining what information is relevant and what is not; evaluating the accuracy of information and credibility of sources; identifying assumptions, inconsistencies, and ambiguous arguments; and evaluating the strength of a claim (Beyer, 1987).
Throughout your management program, you have been developing and applying critical thinking skills. As you review the class notes “A Brief Note on the Theory of Constraints” (located in this week’s resources), think about Goldratt’s theory and the critical thinking required of managers.
This week, and continuing into Weeks 6 and 7, you will be using your critical thinking skills to analyze business issues from the business novel The Goal, and you will evaluate the decisions and actions of the participants in the book—based on concepts learned in the course to date.
To prepare for this Shared Practice, select one of the following options, based on the two course level outcomes below, which you will use to frame and analyze this week’s reading assignment in The Goal:
· Analyze a complex value creation system using management concepts.
· Apply systems thinking to address challenges and opportunities managers encounter
Then, select three or more short passages from this week’s assigned readings in The Goal that contain one or two essential ideas that you found compelling. Analyze each using the Course Outcome you selected as a framework. (Note: Part one of The Goal outlines the various performance problems that the Bearington plant is having, so feel free to practice your systems thinking skills to explain why the plant is having such difficulties! Either course learning outcome above will allow you to do this.)
Respond to at least two of your colleagues who selected alternate Course Outcomes. Provide an insight or another example from the book. Your responses must be at least 1 paragraph in length and should be related to the content in Part 1 of The Goal.
The course outcome I have selected for the assignment last week: apply systems thinking to address challenges and opportunities managers encounter.
Reference: Goldratt, E. & Cox, J. (2014). The Goal: A Process of Ongoing Improvement. (4th ed.). Great Barrington, MA: North River Press.
· Preface–p. 112 (This will be referred to as Part 1 of your The Goal readings.)
1st Colleague to respond to:
Analyze a complex value creation system using management concepts.
The Goal’ is a book by Eliyahu Goldratt which proposes a new method to optimize the production environment by introducing a concept known as ‘Theory of Constraints’. The Theory of Constraints (TOC) is a management philosophy developed by Eliyahu M. Goldratt and is based on the metaphor of a chain and its weakest link: Any complex system at any point in time often has only one aspect or constraint that limits the ability to achieve more of the system’s goal (Goldratt, & Cox, 2014).For the system to attain any significant improvements, that constraint must be identified, and the whole system must be managed with it in mind. What is different about this theory is that it focuses on generating revenue or making money only by utilizing bottleneck machines. In the book, production manager (Alex Rogo) is guided by Jonah who is a management guru, who helps it from closing. The goal of every organization is to generate money and the author proposes 3 measures for the same which are: Turnover, inventories, and operational expenses (Goldratt, & Cox, 2014).
Thus far, using management concepts, I decided to examine a complex value creation system. The production of value is the execution of acts that enhance the value of products, services of an organization. The aim is to improve the company’s value exponentially with profit formation, thus giving the consumer and consumers a better value on the goods. According to Weiss,( 2004) in the brief note ‘Theory of Constraints’ and the,” in The Goal, Goldratt illustrates that the goal of manufacturing organizations is to make money, and that the process can be defined in terms of three criteria: (1) throughput, defined as the rate at which money is generated through sales; (2) inventory, defined as the money invested in purchasing things intended for sale; and (3) operating expense”(p 1). The author explains the priorities of industrial enterprises to raise profits. There are also three criteria: Turnover, inventory, and operational costs. While this is one of my own personal insights and impressions, as a boss, the phrase that is insightful and somewhat troubling is, I conclude, I’d better go see what’s going on at the plant for myself. Management in a company scarcely takes the opportunity to really see what is going on in this scenario, the laboratory. If there is a concern from consumers or higher management, much of the managers’ time is spent in the workplace. It is important to be diligent and keep up to date with company processes as well as the personnel you oversee. Knowing their abilities and shortcomings in the workplace will provide employers with the right role for each job. It created stronger working and personal relationships with both colleagues and management for our company when executives expressed an interest in our product. It is important to be diligent and keep up to date with company processes as well as the personnel you oversee. Knowing their abilities and shortcomings in the workplace will provide employers with the right role for each job. It created stronger working and personal relationships with both colleagues and management for a company when executives expressed an interest in our product. No, we have an agreement with our employer that because of economic progress, nobody will be laid off. Of course, employees are laid off anytime there is a market slowdown.
Some organizations and administrators assume robots will replace humans today, but rarely do they look past what if they break down. Their prime aim is to save money at the point of laid-off people and not securing their vibrant hoods. Protecting employee welfare as managers generate morale and put trust in management, therefore generating profit. Look, the stuff is part of one and part of the other. When you have a machine, the operating cost is the depreciation on the machine. “Stock is whatever part of the investment currently exists in the unit that may be exchanged.” Running costs are the costs involved with everyday company activity, such as equipment and instrumentation, for example. As a management, it is vital to consider the effect that running costs may have on the business. It is critical that all costs are correctly calculated as a requirement for accurately managing operating expenses. It can negatively impact the business without properly conducting this procedure.
Goldrat & Cox, J. (2014). The Goal: A Process of Ongoing Improvement. (4th ed.). Great Barrington, MA: North River Press.
Weiss, E. (2004). A brief note on the theory of constraints [Class note: UV 3532]. Darden School Foundation. Charlottesville, VA: University of Virginia.
2nd Colleague to Respond to:
The story of “the Goal: A process of ongoing improvement” centers around Rogo, who realized that his Plant was facing difficulties as it was losing money (Goldratt & Cox, 2014). If things did not improve, the entire division could be sold (Goldratt & Cox, 2014). Rogo could not decipher why the Plant was not productive since it had the technology, people, materials, and market demand. Fortunately, his ex-Physics teacher, Jonah, helped him discover ways to improve growth and profitability (Goldratt & Cox, 2014). I have applied systems thinking to address the three passages below from the story since systems thinking is particularly beneficial in addressing complex problems and situations (Senge, 2006).
1st Passage – Chapter 1
“Peach explodes. ‘Damnit, the issue is not Burnside’s order! Burnside’s order is just a symptom of the problem around here. Do you think I’d come down here just to expedite a late order? Do you think I don’t have enough to do? I came down here to light a fire under you and everyone else in this Plant. This isn’t just a matter of customer service. Your Plant is losing money.” (Goldratt & Cox, 2014, p. 11).
This passage is an illustration of Rogo’s problematic and narrow thinking. Rogo assumes that Peach is angry because a specific order is late. He cannot see that late orders are only a symptom of the problem currently being faced, namely the Plant’s lack of productivity. Rogo does not understand at this stage that the whole Plant is in trouble. He is merely looking at the symptom and not the bigger picture. When managers encounter complex situations, systems thinking can help them understand the situation systemically (Senge, 2006). By seeing the big picture, Rogo would be able to identify multiple leverage points that can be addressed to support constructive change.
2nd Passage – Chapter 3
“My first reaction is that it’s no wonder Peach has been acting like a madman lately. Everything he’s worked for is in jeopardy. If some other corporation buys the division, Peach won’t even have a job. The new owners will want to clean house and they’re sure to start at the top. And what about me; will I have a job? ” (Goldratt & Cox, 2014, p. 30).
Rogo now understands why Peach had been acting so erratic recently. He learns that the Division has one year to improve or it was going to be sold (Goldratt & Cox, 2014). The possibility of the entire division closing and the risk of losing his job explains Peach’s irrational and irate behavior. Closing the whole division has far-reaching effects as it threatens the livelihoods of many people. This shows us that stress can significantly alter one’s personality. Rogo’s and Peach’s relationship had been marked by camaraderie in the past. However, fear and animosity led to lack of collaboration and innovation, although needed to save both the plant and the division. Peach’s approach will often result in a paralyzed organization, one that will never initiate change, let alone innovation. “Problems are often caused and/or reinforced by underlying organizational structures and the mental models of stakeholders involved” (Monat, Amissah, & Gannon, 2020, p. 5). Consequently, Peach’s responses to the problems encountered should be informed by this broader perspective (Monat, Amissah, & Gannon, 2020). Being open about the state of the organization and working together to find collaborative solutions would have been more productive rather than shouting, blaming persons and acting erratic.
3rd Passage – Chapter 4
“Alex, I have come to the conclusion that productivity is the act of bringing a company closer to its goal. Every action that brings a company closer to its goal is productive. Every action that does not bring a company closer to its goal is not productive. Do you follow me?” “Yeah, but . . . really, Jonah, that’s just simple commonsense,” I say to him” (Goldratt & Cox, 2014, p. 38).
At the point in the story Rogo told Jonah that the robots have led to a thirty-six percent improvement in one area of the Plant (Goldratt & Cox, 2014). Therefore, this improvement shows productivity. Jonah was informing Rogo that, that is not a true definition of productivity. While a section of the business had improved, the organization was still inefficient. Jonah, then defines productivity as stated in the passage above. While Rogo believed that Jonah’s definition was simply common sense, he had not realized that his actions did not amount to true productivity. Making one department more efficient does not necessarily increase the efficiency of the whole organization. In a manufacturing plant, where inventory and the productivity of work undertaken carries costs, making the wrong department more efficient can impact the whole organization, thereby making the whole system less efficient. Systems thinking takes a longer-term view of solving problems and strives to develop people’s sensitivity to the entire system’s interdependency and the consequences (Senge, 2006). Ensuring the right interaction between the dependent parts are essential for the success of the organization. To ensure actual efficiency, the entire system should be optimized and, not just a single department. In essence, organizations should be managed as a system, not only as a conglomeration of components.
A crucial component of systems thinking is feedback. Receiving pertinent feedback enables managers to find solutions to problems and to avoid wasting resources. However, the manager of an organization I previously worked for was not very open to receiving feedback. He had particular procedures and systems in place, which he thought were effective, although it was apparent to many that it was not. Rather than reevaluate the strategies in place, like Peach he blamed the lack of productivity on the employees. He failed to understand that systemic structure often impacts business results more than individuals do. His behavior lead to persons withdrawing themselves from him and interacting only when necessary. When managers are systems thinkers, they veer away from the practice of just giving instructions and controlling the system. It is essential to develop a way of seeing the system as a whole and taking actions beneficial for the entire organization (Harris, 2018). Systems thinking is a practical approach to managing organizations (Harris, 2018). Managers should have the capacity to see how different divisions or teams within an organization interact and affect each other as they work toward a goal (Harris, 2018).
Harris, B. (2018, March 23). Introducing Systems Thinking into Your Organization. Retrieved from https://thesystemsthinker.com/introducing-systems-thinking-into-your-organization/
Goldratt, E. & Cox, J. (2014). The Goal: A Process of Ongoing Improvement (4th ed.). Great Barrington, MA: North River Press. ISBN 978-088427-195-6.
Monat, J., Amissah, M., & Gannon, T. (2020). Practical Applications of Systems Thinking to Business. Systems, 8(2), 14.
Senge, P.M. (2006). The fifth discipline: The art & practice of the learning organization. New York, NY: Doubleday.