Question

In the book "The Goal" Comment on the interactions between the Marketing function and Alex Rogo's plant. How did they help and hurt each other?

Answer 1

Alex winds up referring to Jonah. He is given three words to assist him in managing his factory, production, inventory and operating expenses. Jonah notes that they should describe anything in the plant in these three words. "Throughput is the amount at which the system produces revenue through purchases." "Inventory is all the revenue the system has spent in buying items it wants to sell." "Operational spending is all the resources the machine uses to turn inventory into a throughput." Alex fresh from his chat with Jonah gets news that the business head needs to come down with one of Alex's robots for a photo opportunity. This gets Alex to think about those robots' performance. With the aid of the accountant, the woman in charge of quality management, and the manager of production, Alex finds that the robots have raised costs, operational expenses and were thus less efficient. Implementing the machines raised costs by not cutting other expenses, such as manual labour. The work was transferred into other areas of the factory. At the plant Alex is experiencing a crisis. All the latest orders have apparently produced additional bottlenecks. They decided to raise inventory in front of the bottlenecks after evaluating the issue, asking sales not to guarantee new delivery of orders for four weeks, twice as long as before. It will hurt the current sales-production arrangement but it's needed. Production is an continuous development cycle that must be dealt with appropriately as new challenges occur.

In this way, they help and hurt each other!