Download - Introducing Jonah's Thinking Process
Introducing Jonah’s Thinking Process
The AGI “Know-Why” behind the
Thinking Processes
2© 1993-2013 Avraham Y. Goldratt Institute, a Limited Partnership. All Rights Reserved.
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
3© 1993-2013 Avraham Y. Goldratt Institute, a Limited Partnership. All Rights Reserved.
We, at the AGI-Goldratt Institute, consider that two types of knowledge are necessary to really excel 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 manage systems 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 should work. The Know-Why element is important to understand 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.
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 Alex and his production team to think about their business, and what they should measure that drives decisions that are aligned with the goal of the business. This program is so-named because it imparts the details of how Jonah actually thinks though problems.
Enjoy the following TOC Thinking Processes rendition of the conversation between Alex Rogo and Jonah. If you or your organization would like to to excel in business today and learn how to think through problems like Jonah, let us hear from you. We look forward to hearing from you soon!
4© 1993-2013 Avraham Y. Goldratt Institute, a Limited Partnership. All Rights Reserved.
The story through the eyes of JonahPredicted Effect (aka ECE)
E1
C
Cause
Effect
(Speculate)
5© 1993-2013 Avraham Y. Goldratt Institute, a Limited Partnership. All Rights Reserved.
The story through the eyes of Jonah
Predicted Effect (aka ECE)
E2E1
CCause
Effect
(Speculate)
Note that the cause (C) must both:1. Exist, and…2. Lead to another verifiable effect (E2)
6© 1993-2013 Avraham Y. Goldratt Institute, a Limited Partnership. All Rights Reserved.
The story through the eyes of JonahPredicted Effect (aka ECE)
E2E1
CCause
Effect
(Speculate)
Note that the cause (C) must both:1. Exist, and…2. Lead to another verifiable effect (E2)
Alex claims that robots significantly improved the productivity of his plant.
Effect
Alex knows what he’s
talking about.
Speculated Cause
For example…
7© 1993-2013 Avraham Y. Goldratt Institute, a Limited Partnership. All Rights Reserved.
The story through the eyes of JonahPredicted Effect (aka ECE)
E2E1
CCause
Effect
(Speculate)
Note that the cause (C) must both:1. Exist, and…2. Lead to another verifiable effect (E2)
Alex claims that robots significantly improved the productivity of his plant.
Effect
Alex knows what he’s
talking about.
Speculated Cause
Robots significantly improved the productivity
of Alex’s plant.
Predicted Effect
For example…
8© 1993-2013 Avraham Y. Goldratt Institute, a Limited Partnership. All Rights Reserved.
The story through the eyes of JonahPredicted Effect (aka ECE)
E2E1
CCause
Effect
(Speculate)
Note that the cause (C) must both:1. Exist, and…2. Lead to another verifiable effect (E2)
Really?!…36% more money
from installing robots??
Alex claims that robots significantly improved the productivity of his plant.
Effect
Alex knows what he’s
talking about.
Speculated Cause
Robots significantly improved the productivity
of Alex’s plant.
Predicted Effect
For example…
9© 1993-2013 Avraham Y. Goldratt Institute, a Limited Partnership. All Rights Reserved.
The story through the eyes of Jonah
Predicted Effect (aka ECE)
Cause
Effect E2E1
C
(Speculate)
Note that the cause (C) must both:1. Exist, and…2. Lead to another verifiable effect (E2)
Really?!…36% more money from installing robots??
No, not profit, just in a
certain area.
Alex claims that robots significantly improved the productivity of his plant.
Effect
Alex knows what he’s
talking about.
Speculated Cause
Robots significantly improved the productivity
of Alex’s plant.
Predicted Effect
For example…
10© 1993-2013 Avraham Y. Goldratt Institute, a Limited Partnership. All Rights Reserved.
Validating the Speculated Cause
Alex knows what he’s
talking about.
Alex claims that robots significantly improved the productivity of his plant.
Robots significantly improved the productivity
of Alex’s plant.
“Have you sold more product from your plant
because of these robots?”
Double Check!
No, Throughput (sales) did not
increase.
11© 1993-2013 Avraham Y. Goldratt Institute, a Limited Partnership. All Rights Reserved.
Alex knows what he’s
talking about.
Alex claims that robots significantly improved the productivity of his plant.
Robots significantly improved the productivity
of Alex’s plant.
“Have you reduced operating expenses in
your plant?”
Double Check!
No, Throughput (sales) did not
increase.
No, Operating Expenses did not
decrease.
12© 1993-2013 Avraham Y. Goldratt Institute, a Limited Partnership. All Rights Reserved.
Alex knows what he’s
talking about.
Alex claims that robots significantly improved the productivity of his plant.
Robots significantly improved the productivity
of Alex’s plant.
“Did your inventories go down?”
Double Check!
No, Throughput (sales) did not
increase.
No, Operating Expenses did not
decrease.
No, Inventory did not decrease.
13© 1993-2013 Avraham Y. Goldratt Institute, a Limited Partnership. All Rights Reserved.
Alex knows what he’s
talking about.
Alex claims that robots significantly improved the productivity of his plant.
Robots significantly improved the productivity
of Alex’s plant.
Double Check!
No, Throughput (sales) did not
increase.
No, Operating Expenses did not
decrease.
No, Inventory did not decrease.
But my price per part has gone down and my efficiencies are
up…
14© 1993-2013 Avraham Y. Goldratt Institute, a Limited Partnership. All Rights Reserved.
Alex knows what he’s
talking about.
Alex claims that robots significantly improved the productivity of his plant.
Robots significantly improved the productivity
of Alex’s plant.
Efficiencies? Why was your business
created…to show off its efficiencies?
Double Check!
No, Throughput (sales) did not
increase.
No, Operating Expenses did not
decrease.
No, Inventory did not decrease.
But my price per part has gone down and my efficiencies are
up…
15© 1993-2013 Avraham Y. Goldratt Institute, a Limited Partnership. All Rights Reserved.
Alex claims that robots significantly improved the productivity in his plant.
Robots did not improve the productivity of Alex’s
plant.
Throughput (sales) did not increase.
Operating Expenses did not decrease.
Inventory did not decrease.
Speculate…If -Then
16© 1993-2013 Avraham Y. Goldratt Institute, a Limited Partnership. All Rights Reserved.
Alex claims that robots significantly improved the productivity in his plant.
Robots did not improve the productivity of Alex’s
plant.
Throughput (sales) did not increase.
Operating Expenses did not decrease.
Inventory did not decrease.
Speculate…If -Then
Alex doesn’t know what he’s talking about.
17© 1993-2013 Avraham Y. Goldratt Institute, a Limited Partnership. All Rights Reserved.
Alex claims that robots significantly improved the productivity in his plant.
Robots did not improve the productivity of Alex’s
plant.
Throughput (sales) did not increase.
Operating Expenses did not decrease.
Inventory did not decrease.
Plant efficiencies did not go up.
Speculate…If -Then
Alex doesn’t know what he’s talking about.
18© 1993-2013 Avraham Y. Goldratt Institute, a Limited Partnership. All Rights Reserved.
Alex claims that robots significantly improved the productivity in his plant.
Robots did not improve the productivity of Alex’s
plant.
Throughput (sales) did not increase.
Operating Expenses did not decrease.
Inventory did not decrease.
Plant efficiencies did not go up.
Alex claims that efficiencies went up.
Alex claims that efficiencies went up
when they didn’t.
Speculate…If -Then
Alex doesn’t know what he’s talking about.
19© 1993-2013 Avraham Y. Goldratt Institute, a Limited Partnership. All Rights Reserved.
Alex claims that robots significantly improved the productivity in his plant.
Robots did not improve the productivity of Alex’s
plant.
Throughput (sales) did not increase.
Operating Expenses did not decrease.
Inventory did not decrease.
Plant efficiencies did not go up.
Alex claims that efficiencies went up.
Alex claims that efficiencies went up
when they didn’t.
Alex claims that costs went down when they didn’t.
Alex claims that costs went down.
Speculate…If -Then
Alex doesn’t know what he’s talking about.
20© 1993-2013 Avraham Y. Goldratt Institute, a Limited Partnership. All Rights Reserved.
Alex claims that robots significantly improved the productivity in his plant.
Robots did not improve the productivity of Alex’s
plant.
Throughput (sales) did not increase.
Operating Expenses did not decrease.
Inventory did not decrease.
Plant efficiencies did not go up.
Alex claims that efficiencies went up.
Alex claims that efficiencies went up
when they didn’t.
Alex claims that robots significantly improved the productivity in his plant
when they didn’t.
Alex claims that costs went down when they didn’t.
Alex claims that costs went down.
Speculate…If -Then
Alex doesn’t know what he’s talking about.
21© 1993-2013 Avraham Y. Goldratt Institute, a Limited Partnership. All Rights Reserved.
Alex claims that efficiencies went up
when they didn’t.
Alex claims that robots significantly improved the productivity in his plant
when they didn’t.
Alex claims that costs went
down when they didn’t.
So why is Alex saying that… and what’s his plant like?
Alex doesn’t know what he’s talking about.
22© 1993-2013 Avraham Y. Goldratt Institute, a Limited Partnership. All Rights Reserved.
Alex claims that efficiencies went up
when they didn’t.
Alex claims that robots significantly improved the productivity in his plant
when they didn’t.
Alex claims that costs went
down when they didn’t.
So why is Alex saying that… and what’s his plant like?
Alex doesn’t know what he’s talking about.
23© 1993-2013 Avraham Y. Goldratt Institute, a Limited Partnership. All Rights Reserved.
Alex claims that efficiencies went up
when they didn’t.
Alex claims that robots significantly improved the productivity in his plant
when they didn’t.
Alex claims that costs went
down when they didn’t.
Alex runs his plant striving to achieve local optima!
So why is Alex saying that… and what’s his plant like?
24© 1993-2013 Avraham Y. Goldratt Institute, a Limited Partnership. All Rights Reserved.
Alex claims that efficiencies went up
when they didn’t.
Alex claims that robots significantly improved the productivity in his plant
when they didn’t.
Alex claims that costs went
down when they didn’t.
Alex runs his plant striving to achieve local optima!
It’s local efficiencies that are important to
Alex.
Alex tries to run all of his resources constantly.
Material is released just to supply work to
resources.
Work-in-process inventory is too high.
So why is Alex saying that… and what’s his plant like?
25© 1993-2013 Avraham Y. Goldratt Institute, a Limited Partnership. All Rights Reserved.
Alex claims that efficiencies went up
when they didn’t.
Alex claims that robots significantly improved the productivity in his plant
when they didn’t.
Alex claims that costs went
down when they didn’t.
Alex runs his plant striving to achieve local optima!
It’s local efficiencies that are important to
Alex.
It’s the local notion of “cost-per-part” that is
important to Alex.
Alex tries to run all of his resources constantly.
Material is released just to supply work to
resources.
Work-in-process inventory is too high.
Alex tries to save set-ups.
So why is Alex saying that… and what’s his plant like?
26© 1993-2013 Avraham Y. Goldratt Institute, a Limited Partnership. All Rights Reserved.
Alex claims that efficiencies went up
when they didn’t.
Alex claims that robots significantly improved the productivity in his plant
when they didn’t.
Alex claims that costs went
down when they didn’t.
Alex runs his plant striving to achieve local optima!
It’s local efficiencies that are important to
Alex.
It’s the local notion of “cost-per-part” that is
important to Alex.
Alex tries to run all of his resources constantly.
Material is released just to supply work to
resources.
Work-in-process inventory is too high.
Finished goods inventory is too high.
Alex tries to save set-ups.
Large batches are run to “gain” low cost per
part.
Satisfying demand for small
quantities is delayed.
So why is Alex saying that… and what’s his plant like?
27© 1993-2013 Avraham Y. Goldratt Institute, a Limited Partnership. All Rights Reserved.
Alex claims that efficiencies went up
when they didn’t.
Alex claims that robots significantly improved the productivity in his plant
when they didn’t.
Alex claims that costs went
down when they didn’t.
Alex runs his plant striving to achieve local optima!
It’s local efficiencies that are important to
Alex.
It’s the local notion of “cost-per-part” that is
important to Alex.
Alex tries to run all of his resources constantly.
Material is released just to supply work to
resources.
Many common materials exist in
almost every plant.
Material is ordered according to
expected demand.
Purchasing frequently faces
material shortages.
Work-in-process inventory is too high.
Finished goods inventory is too high.
Purchasing will increase the levels of raw material
and purchased parts inventory.
Alex tries to save set-ups.
Large batches are run to “gain” low cost per
part.
Satisfying demand for small
quantities is delayed.
So why is Alex saying that… and what’s his plant like?
28© 1993-2013 Avraham Y. Goldratt Institute, a Limited Partnership. All Rights Reserved.
Work-in-process inventory is too high.
Finished goods inventory is too high.
Purchasing will increase the levels of raw material
and purchased parts inventory.
29© 1993-2013 Avraham Y. Goldratt Institute, a Limited Partnership. All Rights Reserved.
Work-in-process inventory is too high.
Finished goods inventory is too high.
Purchasing will increase the levels of raw material
and purchased parts inventory.
“Tell me, Alex..”
30© 1993-2013 Avraham Y. Goldratt Institute, a Limited Partnership. All Rights Reserved.
Work-in-process inventory is too high.
Finished goods inventory is too high.
Purchasing will increase the levels of raw material
and purchased parts inventory.
“All material inventories are going through the roof, are
they not?”
“Tell me, Alex..”
31© 1993-2013 Avraham Y. Goldratt Institute, a Limited Partnership. All Rights Reserved.
Work-in-process inventory is too high.
Finished goods inventory is too high.
Purchasing will increase the levels of raw material
and purchased parts inventory.
“All material inventories are going through the roof, are
they not?”
“Tell me, Alex..”
!
32© 1993-2013 Avraham Y. Goldratt Institute, a Limited Partnership. All Rights Reserved.
Work-in-process inventory is too high.
Finished goods inventory is too high.
Purchasing will increase the levels of raw material
and purchased parts inventory.
Satisfying demand for small
quantities is delayed.
“All material inventories are going through the roof, are
they not?”
Sifting what should be done to satisfy near due-date customer
orders is mainly achieved through (formal and informal)
expediting.
“Tell me, Alex..”
!!
33© 1993-2013 Avraham Y. Goldratt Institute, a Limited Partnership. All Rights Reserved.
Work-in-process inventory is too high.
Finished goods inventory is too high.
Purchasing will increase the levels of raw material
and purchased parts inventory.
Satisfying demand for small
quantities is delayed.
“All material inventories are going through the roof, are
they not?”
Sifting what should be done to satisfy near due-date customer
orders is mainly achieved through (formal and informal)
expediting.
“Customer orders are always late, can’t ship anything on
time!”
How does he know…??
“Tell me, Alex..”
34© 1993-2013 Avraham Y. Goldratt Institute, a Limited Partnership. All Rights Reserved.
‘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 our website at www.goldratt.com/criticalthinkingprograms.shtml.
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Questions? Please contact Ms. Robbin Seipold, Director of Client Services, at [email protected] or by telephone at (203) 624-9026, ext 306.
We look forward to hearing from you soon!