the goal is to make money. I feel the way we follow to make money shouldn't be violating the business ethics. In my opinion, the money generated by business is essential for firm's survival, growth, social responsibility.
As mentioned in the novel, the plant manager character in the novel Alex Rogo, and his division was facing financial crisis. His supervisor Bill Peach had warned him to shut-down the plant if they don't show improvement of the plant in three months time. Alex took this as a challenge to prove himself and his plant to prove in three months. Surprisingly, Alex remembers his physics professor Jonah, who finally helped Alex with practical suggestions in a Socratic way.
The measurements of expressing the goal of making money are namely: throughput, inventory and operational expense. The rate at which the system generates money through sales is throughput. This is the money coming in the system. The money invested in purchasing things is called inventory (Goldratt 66). Inventory is the money currently inside the system. The money spent to turn inventory into throughput is called operational expense (Goldratt 67). All these definitions are related to money, the goal of any business firm. If we increase throughput, and reduce both inventory as well as operating expense, this leads to profit. So the goal can be understood in terms of relation of these terms. ...Show more