CFO Studio Magazine 1st Quarter 2014 - page 44

44
1st QUARTER 2014
By Gerald Najarian
Principal, The Remington Group, LLC
Photography: 123RF Stock Photo
I
n management theorist Eli Goldratt’s
1984 novel about manufacturing,
The Goal
, there is a scene in which
Alex, the plant manager, is extolling the
virtues of a recently acquired machine
to his mentor, Jonah. Alex tells Jonah
howmany more parts the fancy new
machine will produce in less time.
Jonah listens patiently and asks, “But
are you making any more money?” Of
course, Jonah was making the point
that underlies the title of the book: The
goal
is to make money, and automation
(or anything else) that is not in service
of that goal is of questionable value.
Learn more about the author
GeraldNajarian
ASK
YOURSELF
“WHAT DO WE
SELL?” IF THE
ANSWER IS
“CAPACITY,”
THEN YOU’RE
WELL
POSITIONED
TO MAKE
MONEY
PROFITABLE
MANUFACTURING
2 CFO CFO
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