Introducing Jonah's Thinking Process

Introducing Jonah’s Thinking Process

The AGI “Know-Why” behind the

Thinking Processes

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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


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!


The story through the eyes of JonahPredicted Effect (aka ECE)

E1

C

Cause

Effect

(Speculate)


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)



E2E1

CCause

Effect

(Speculate)


Alex claims that robots significantly improved the productivity of his plant.

Effect

Alex knows what he’s

talking about.

Speculated Cause

For example…



E2E1

CCause

Effect

(Speculate)



Effect


talking about.

Speculated Cause

Robots significantly improved the productivity

of Alex’s plant.

Predicted Effect

For example…



E2E1

CCause

Effect

(Speculate)


Really?!…36% more money

from installing robots??


Effect


talking about.

Speculated Cause


of Alex’s plant.

Predicted Effect

For example…


The story through the eyes of Jonah

Predicted Effect (aka ECE)

Cause

Effect E2E1

C

(Speculate)


Really?!…36% more money from installing robots??

No, not profit, just in a

certain area.


Effect


talking about.

Speculated Cause


of Alex’s plant.

Predicted Effect

For example…


Validating the Speculated Cause


talking about.



of Alex’s plant.

“Have you sold more product from your plant

because of these robots?”

Double Check!

No, Throughput (sales) did not

increase.



talking about.



of Alex’s plant.

“Have you reduced operating expenses in

your plant?”

Double Check!


increase.

No, Operating Expenses did not

decrease.



talking about.



of Alex’s plant.

“Did your inventories go down?”

Double Check!


increase.


decrease.

No, Inventory did not decrease.



talking about.



of Alex’s plant.

Double Check!


increase.


decrease.


But my price per part has gone down and my efficiencies are

up…



talking about.



of Alex’s plant.

Efficiencies? Why was your business

created…to show off its efficiencies?

Double Check!


increase.


decrease.


But my price per part has gone down and my efficiencies are

up…


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




plant.





Alex doesn’t know what he’s talking about.




plant.




Plant efficiencies did not go up.






plant.





Alex claims that efficiencies went up.

Alex claims that efficiencies went up

when they didn’t.






plant.







when they didn’t.

Alex claims that costs went down when they didn’t.

Alex claims that costs went down.






plant.







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.





when they didn’t.


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?




when they didn’t.


when they didn’t.







when they didn’t.


when they didn’t.



Alex runs his plant striving to achieve local optima!




when they didn’t.


when they didn’t.




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.




when they didn’t.


when they didn’t.





Alex.

It’s the local notion of “cost-per-part” that is

important to Alex.



resources.


Alex tries to save set-ups.




when they didn’t.


when they didn’t.





Alex.


important to Alex.



resources.


Finished goods inventory is too high.


Large batches are run to “gain” low cost per

part.

Satisfying demand for small

quantities is delayed.




when they didn’t.


when they didn’t.





Alex.


important to Alex.



resources.

Many common materials exist in

almost every plant.

Material is ordered according to

expected demand.

Purchasing frequently faces

material shortages.



Purchasing will increase the levels of raw material

and purchased parts inventory.


Large batches are run to “gain” low cost per

part.














“Tell me, Alex..”






“All material inventories are going through the roof, are

they not?”








they not?”


!









they not?”

Sifting what should be done to satisfy near due-date customer

orders is mainly achieved through (formal and informal)

expediting.


!!









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…??



‘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!

http://www.goldratt.com/criticalthinkingprograms.shtml

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Introducing Jonah's Thinking Process