In CH 5, Rogo concluded that the primary goal of a manufacturing concern is not efficiency, quality, sales, volume, or technology. The true goal—he deduced—is very simply, to make profit. The goal of making money for any company is not surprising. The reason why businesses do business is so they can gain return of investment (ROI). However, money should not be the only goal of an organization. The reason why companies invest on process improvement is to improve quality and efficiency, which will translate to more profit. “For the most part companies of today falsify what is “needed” or “wanted” in the market…(otherwise known as people).
There is nothing ‘human’ about satisfying a ‘need’ that forces you to spend tons of dollars on wrinkle cream that really doesn’t work anyway” (Denning). Hence, companies must remember that to make money, they have to provide high quality products and or services. They cannot expect consumers to patronize them without giving anything in return. Most of the time consumers have no issue paying money on products and or services they know will give them their money’s worth.
With regards to Stacy’s comment, “Investment is the same as Inventory,” I believe she meant that investments includes any addition to the inventory. In the case of a manufacturing company, for example, if they wish to gain competitive advantage one of the ways is to introduce additional feature. Altering an existing product require changing the inventory process/cycle. Hence, it requires investment. Investing is the same as inventory because people expect to earn profit from both. People are willing to invest as long as they have a clear idea on when they will receive the ROI.
Denning, Steve. “Is The Goal Of A Corporation To Make Money?” Forbes, 2011 Sep 26, https://www.forbes.com/sites/stevedenning/2011/09/26/is-the-goal-of-a-corporation-to- make-money/?sh=6f16dc6e54ed. Accessed February 20, 2022.
Goldratt, Eliyahu and Jeff Cox. “The Goal: A Process of Ongoing Improvement, 3rd revised