Introducing Jonah's Thinking Process

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The AGI "Know-Why" behind the Thinking Processes

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  • If you enjoyed reading the GOAL, you will love the mind of the Jonah, the thinker behind the hero Alex Rogo
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Introducing Jonah's Thinking Process

  1. 1. Introducing Jonah’s Thinking ProcessThe AGI “Know-Why” behind the Thinking Processes
  2. 2. Introducing Jonah’s Thinking Process ALEX ROGO JONAH How does Jonah know? How does he do that?The AGI “Know-Why” behind the Thinking Processes © 1993-2013 Avraham Y. Goldratt Institute, a Limited Partnership. All Rights Reserved. 2
  3. 3. We, at the AGI-Goldratt Institute, consider that two types of knowledge are necessary to reallyexcel in business today: 1. "Know-How”, doing the things right, and 2. "Know-Why”, doing the right things.The Know-How element focuses on the technical ability to integrate, align and managesystems and sub-systems. Jonah‟s understanding of how operations works allows him to„connect-the-dots‟ with Alex – the Know-Why – to help Alex derive how his UniCo plant shouldwork. The Know-Why element is important to understand the logic of the cause and effect thatreally governs your systems. This knowledge creates the ability to link the changes made byapplying the Know-How to the results, or effects, that the changes create.Our Jonah Program® for Operations is the AGI Program that provides this ability. The term„Jonah‟ is the name of the character in Dr. Eliyahu M. Goldratt‟s book, The Goal, that leads Alexand his production team to think about their business, and what they should measure thatdrives decisions that are aligned with the goal of the business. This program is so-namedbecause it imparts the details of how Jonah actually thinks though problems.Enjoy the following TOC Thinking Processes rendition of the conversation between Alex Rogoand Jonah. If you or your organization would like to to excel in business today and learn howto think through problems like Jonah, let us hear from you. We look forward to hearing fromyou soon! © 1993-2013 Avraham Y. Goldratt Institute, a Limited Partnership. All Rights Reserved. 3
  4. 4. The story through the eyes of Jonah Predicted Effect (aka ECE)Effect E1 C Cause (Speculate) © 1993-2013 Avraham Y. Goldratt Institute, a Limited Partnership. All Rights Reserved. 4
  5. 5. The story through the eyes of Jonah Predicted Effect (aka ECE) E1 E2Effect Note that the cause (C) must both: 1. Exist, and… C 2. Lead to another verifiable effect (E2) Cause (Speculate) © 1993-2013 Avraham Y. Goldratt Institute, a Limited Partnership. All Rights Reserved. 5
  6. 6. The story through the eyes of Jonah Predicted Effect (aka ECE) E1 E2 Effect Note that the cause (C) must both: 1. Exist, and… C 2. Lead to another verifiable effect (E2) Cause (Speculate)For example… Effect Alex claims that robots significantly improved the productivity of his plant. Alex knows what he‟s talking about. Speculated Cause Avraham Y. Goldratt Institute, a Limited Partnership. All Rights Reserved. © 1993-2013 6
  7. 7. The story through the eyes of Jonah Predicted Effect (aka ECE) E1 E2 Effect Note that the cause (C) must both: 1. Exist, and… C 2. Lead to another verifiable effect (E2) Cause (Speculate)For example… Effect Predicted Effect Alex claims that robots Robots significantly significantly improved the improved the productivity productivity of his plant. of Alex‟s plant. Alex knows what he‟s talking about. Speculated Cause Avraham Y. Goldratt Institute, a Limited Partnership. All Rights Reserved. © 1993-2013 7
  8. 8. The story through the eyes of Jonah Predicted Effect (aka ECE) E1 E2 Effect Note that the cause (C) must both: 1. Exist, and… C 2. Lead to another verifiable effect (E2) Cause (Speculate)For example… Really?!…36% Effect Predicted Effect more money Alex claims that robots Robots significantly from installing significantly improved the improved the productivity productivity of his plant. of Alex‟s plant. robots?? Alex knows what he‟s talking about. Speculated Cause Avraham Y. Goldratt Institute, a Limited Partnership. All Rights Reserved. © 1993-2013 8
  9. 9. The story through the eyes of Jonah Predicted Effect (aka ECE) Effect E1 E2 Note that the cause (C) must both: 1. Exist, and… 2. Lead to another verifiable effect (E2) C Cause (Speculate)For example… Really?!…36% Effect Predicted Effect more money from Robots significantly installing robots?? Alex claims that robots significantly improved the improved the productivity productivity of his plant. of Alex‟s plant. No, not profit, just in a certain area. Alex knows what he‟s talking about. Speculated Cause Avraham Y. Goldratt Institute, a Limited Partnership. All Rights Reserved. © 1993-2013 9
  10. 10. Validating the Speculated Cause No, Throughput (sales) did not increase. “Have you sold more product from your plant because of these robots?” Alex claims that robots Robots significantlysignificantly improved the improved the productivity productivity of his plant. of Alex‟s plant. Double Check! Alex knows what he‟s talking about. © 1993-2013 Avraham Y. Goldratt Institute, a Limited Partnership. All Rights Reserved. 10
  11. 11. No, Throughput No, Operating (sales) did not Expenses did not increase. decrease. “Have you reduced operating expenses in your plant?” Alex claims that robots Robots significantlysignificantly improved the improved the productivity productivity of his plant. of Alex‟s plant. Double Check! Alex knows what he‟s talking about. © 1993-2013 Avraham Y. Goldratt Institute, a Limited Partnership. All Rights Reserved. 11
  12. 12. No, Throughput No, Operating No, Inventory did not (sales) did not Expenses did not decrease. increase. decrease. “Did your inventories go down?” Alex claims that robots Robots significantlysignificantly improved the improved the productivity productivity of his plant. of Alex‟s plant. Double Check! Alex knows what he‟s talking about. © 1993-2013 Avraham Y. Goldratt Institute, a Limited Partnership. All Rights Reserved. 12
  13. 13. No, Throughput No, Operating No, Inventory did not (sales) did not Expenses did not decrease. increase. decrease. But my price per part has gone down and my efficiencies are up… Alex claims that robots Robots significantlysignificantly improved the improved the productivity productivity of his plant. of Alex‟s plant. Double Check! Alex knows what he‟s talking about. © 1993-2013 Avraham Y. Goldratt Institute, a Limited Partnership. All Rights Reserved. 13
  14. 14. No, Throughput No, Operating No, Inventory did not (sales) did not Expenses did not decrease. increase. decrease. But my price per part has gone down and my efficiencies are up… Efficiencies? Why was your business Alex claims that robots Robots significantly created…to show offsignificantly improved the improved the productivity its efficiencies? productivity of his plant. of Alex‟s plant. Double Check! Alex knows what he‟s talking about. © 1993-2013 Avraham Y. Goldratt Institute, a Limited Partnership. All Rights Reserved. 14
  15. 15. Throughput (sales) Operating Expenses Inventory did not did not increase. did not decrease. decrease. Alex claims that robots Robots did not improve Speculatesignificantly improved the productivity in his plant. the productivity of Alex‟s …If -Then plant. © 1993-2013 Avraham Y. Goldratt Institute, a Limited Partnership. All Rights Reserved. 15
  16. 16. Throughput (sales) Operating Expenses Inventory did not did not increase. did not decrease. decrease. Alex claims that robots Robots did not improve Speculatesignificantly improved the productivity in his plant. the productivity of Alex‟s …If -Then plant. Alex doesn‟t know what he‟s talking about. © 1993-2013 Avraham Y. Goldratt Institute, a Limited Partnership. All Rights Reserved. 16
  17. 17. Plant efficiencies did not go up. Throughput (sales) Operating Expenses Inventory did not did not increase. did not decrease. decrease. Alex claims that robots Robots did not improve Speculatesignificantly improved the productivity in his plant. the productivity of Alex‟s …If -Then plant. Alex doesn‟t know what he‟s talking about. © 1993-2013 Avraham Y. Goldratt Institute, a Limited Partnership. All Rights Reserved. 17
  18. 18. Alex claims that efficiencies went up when they didn‟t. Alex claims that Plant efficiencies did efficiencies went up. not go up. Throughput (sales) Operating Expenses Inventory did not did not increase. did not decrease. decrease. Alex claims that robots Robots did not improve Speculatesignificantly improved the productivity in his plant. the productivity of Alex‟s …If -Then plant. Alex doesn‟t know what he‟s talking about. © 1993-2013 Avraham Y. Goldratt Institute, a Limited Partnership. All Rights Reserved. 18
  19. 19. Alex claims that Alex claims that efficiencies went up costs went down when they didn‟t. when they didn‟t. Alex claims that Plant efficiencies did Alex claims that efficiencies went up. not go up. costs went down. Throughput (sales) Operating Expenses Inventory did not did not increase. did not decrease. decrease. Alex claims that robots Robots did not improve Speculatesignificantly improved the productivity in his plant. the productivity of Alex‟s …If -Then plant. Alex doesn‟t know what he‟s talking about. © 1993-2013 Avraham Y. Goldratt Institute, a Limited Partnership. All Rights Reserved. 19
  20. 20. Alex claims that robots significantly Alex claims that Alex claims thatimproved the productivity in his plant efficiencies went up costs went down when they didn‟t. when they didn‟t. when they didn‟t. Alex claims that Plant efficiencies did Alex claims that efficiencies went up. not go up. costs went down. Throughput (sales) Operating Expenses Inventory did not did not increase. did not decrease. decrease. Alex claims that robots Robots did not improve Speculate significantly improved the productivity in his plant. the productivity of Alex‟s …If -Then plant. Alex doesn‟t know what he‟s talking about. © 1993-2013 Avraham Y. Goldratt Institute, a Limited Partnership. All Rights Reserved. 20
  21. 21. So why is Alex saying that… and what‟s his Alex claims plant like? Alex claims that Alex claims that robots significantly efficiencies went up that costs wentimproved the productivity in his plant when they didn‟t. down when when they didn‟t. they didn‟t. Alex doesn‟t know what he‟s talking about. © 1993-2013 Avraham Y. Goldratt Institute, a Limited Partnership. All Rights Reserved. 21
  22. 22. So why is Alex saying that… and what‟s his Alex claims plant like? Alex claims that Alex claims that robots significantly efficiencies went up that costs wentimproved the productivity in his plant when they didn‟t. down when when they didn‟t. they didn‟t. Alex doesn‟t know what he‟s talking about. © 1993-2013 Avraham Y. Goldratt Institute, a Limited Partnership. All Rights Reserved. 22
  23. 23. So why is Alex saying that… and what‟s his Alex claims plant like? Alex claims that Alex claims that robots significantly efficiencies went up that costs wentimproved the productivity in his plant when they didn‟t. down when when they didn‟t. they didn‟t. Alex runs his plant striving to achieve local optima! © 1993-2013 Avraham Y. Goldratt Institute, a Limited Partnership. All Rights Reserved. 23
  24. 24. Work-in-process inventory is too high. Material is released just to supply work to resources. Alex tries to run all of his resources constantly. It‟s local efficiencies So why is that are important to Alex saying Alex. that… and what‟s his Alex claims plant like? Alex claims that Alex claims that robots significantly efficiencies went up that costs wentimproved the productivity in his plant when they didn‟t. down when when they didn‟t. they didn‟t. Alex runs his plant striving to achieve local optima! © 1993-2013 Avraham Y. Goldratt Institute, a Limited Partnership. All Rights Reserved. 24
  25. 25. Work-in-process inventory is too high. Material is released just to supply work to resources. Alex tries to run all of his Alex tries to save resources constantly. set-ups. It‟s local efficiencies It‟s the local notion of So why is that are important to “cost-per-part” that is Alex saying Alex. important to Alex. that… and what‟s his Alex claims plant like? Alex claims that Alex claims that robots significantly efficiencies went up that costs wentimproved the productivity in his plant when they didn‟t. down when when they didn‟t. they didn‟t. Alex runs his plant striving to achieve local optima! © 1993-2013 Avraham Y. Goldratt Institute, a Limited Partnership. All Rights Reserved. 25
  26. 26. Finished goods inventory is too high. Work-in-process inventory is too high. Large Satisfying batches are Material is released demand for small run to “gain” just to supply work to quantities is low cost per resources. delayed. part. Alex tries to run all of his Alex tries to save resources constantly. set-ups. It‟s local efficiencies It‟s the local notion of So why is that are important to “cost-per-part” that is Alex saying Alex. important to Alex. that… and what‟s his Alex claims plant like? Alex claims that Alex claims that robots significantly efficiencies went up that costs wentimproved the productivity in his plant when they didn‟t. down when when they didn‟t. they didn‟t. Alex runs his plant striving to achieve local optima! © 1993-2013 Avraham Y. Goldratt Institute, a Limited Partnership. All Rights Reserved. 26
  27. 27. Purchasing will increase Finished goods the levels of raw material inventory is too high. and purchased parts inventory. Work-in-process Purchasing inventory is too high. frequently faces Large Satisfying material shortages. batches are Material is released demand for small run to “gain” just to supply work to quantities is low cost per resources. delayed. part.Material is ordered according to Alex tries to run all of his Alex tries to saveexpected demand. resources constantly. set-ups. Many common materials exist in It‟s local efficiencies It‟s the local notion of So why is almost every plant. that are important to “cost-per-part” that is Alex saying Alex. important to Alex. that… and what‟s his Alex claims plant like? Alex claims that Alex claims that robots significantly efficiencies went up that costs went improved the productivity in his plant when they didn‟t. down when when they didn‟t. they didn‟t. Alex runs his plant striving to achieve local optima! © 1993-2013 Avraham Y. Goldratt Institute, a Limited Partnership. All Rights Reserved. 27
  28. 28. Purchasing will increase Work-in-process Finished goodsthe levels of raw material inventory is too high. inventory is too high. and purchased parts inventory. © 1993-2013 Avraham Y. Goldratt Institute, a Limited Partnership. All Rights Reserved. 28
  29. 29. “Tell me, Alex..” Purchasing will increase Work-in-process Finished goodsthe levels of raw material inventory is too high. inventory is too high. and purchased parts inventory. © 1993-2013 Avraham Y. Goldratt Institute, a Limited Partnership. All Rights Reserved. 29
  30. 30. “All material inventories are going through the roof, are they not?” “Tell me, Alex..” Purchasing will increase Work-in-process Finished goodsthe levels of raw material inventory is too high. inventory is too high. and purchased parts inventory. © 1993-2013 Avraham Y. Goldratt Institute, a Limited Partnership. All Rights Reserved. 30
  31. 31. ! “All material inventories are going through the roof, are they not?” “Tell me, Alex..” Purchasing will increase Work-in-process Finished goodsthe levels of raw material inventory is too high. inventory is too high. and purchased parts inventory. © 1993-2013 Avraham Y. Goldratt Institute, a Limited Partnership. All Rights Reserved. 31
  32. 32. !! Sifting what should be done to satisfy near due-date customer orders is mainly achieved through (formal and informal) expediting. “All material inventories are going through the roof, are Satisfying they not?” demand for small quantities is delayed. “Tell me, Alex..” Purchasing will increase Work-in-process Finished goodsthe levels of raw material inventory is too high. inventory is too high. and purchased parts inventory. © 1993-2013 Avraham Y. Goldratt Institute, a Limited Partnership. All Rights Reserved. 32
  33. 33. How does he “Customer orders are always late, can‟t ship anything on know…?? time!” Sifting what should be done to satisfy near due-date customer orders is mainly achieved through (formal and informal) expediting. “All material inventories are going through the roof, are Satisfying they not?” demand for small quantities is delayed. “Tell me, Alex..” Purchasing will increase Work-in-process Finished goodsthe levels of raw material inventory is too high. inventory is too high. and purchased parts inventory. © 1993-2013 Avraham Y. Goldratt Institute, a Limited Partnership. All Rights Reserved. 33
  34. 34. „Know‟ like Jonah knows. Learn to use all the tools of Jonah:• Advanced TOC for Operations. The Know-How element that focuses on the technical ability to integrate, align and manage systems and sub-systems.• Jonah Program® for Operations. The Know-Why element for understanding the logic of the cause and effect that really governs your systems. This knowledge creates the ability to link the changes made by applying the Know-How to the results, or effects, that the changes create as Jonah does with Alex Rogo.For more information on attending AGI‟s Jonah Program®, please visit us on ourwebsite at www.goldratt.com/criticalthinkingprograms.shtml.Follow us on LinkedIn. Tell us if you liked what you saw, and please share this withothers.An AGI Jonah? Recommend us on our company page athttp://www.linkedin.com/company/agi---goldratt-instituteQuestions? Please contact Ms. Robbin Seipold, Director of Client Services, atrobbin.seipold@goldratt.com or by telephone at (203) 624-9026, ext 306. We look forward to hearing from you soon! © 1993-2013 Avraham Y. Goldratt Institute, a Limited Partnership. All Rights Reserved. 34

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