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    The Goal

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    Nazeem Musa
    This document provides a book review and summary of "The Goal" by Eliyahu M. Goldratt. It introduces the characters and plot of the novel, which follows plant manager Alex Rogo as he works to save his factory from closure. It also summarizes key concepts from the Theory of Constraints developed by Goldratt, such as identifying the true goal of an organization and focusing on bottlenecks to improve throughput. The review explains that the book uses a story format to illustrate how to approach problems deductively and challenges common business practices and performance metrics.

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    The Goal

    Uploaded by

    Nazeem Musa
    300 views8 pages
    This document provides a book review and summary of "The Goal" by Eliyahu M. Goldratt. It introduces the characters and plot of the novel, which follows plant manager Alex Rogo as he works to save his factory from closure. It also summarizes key concepts from the Theory of Constraints developed by Goldratt, such as identifying the true goal of an organization and focusing on bottlenecks to improve throughput. The review explains that the book uses a story format to illustrate how to approach problems deductively and challenges common business practices and performance metrics.

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    Summary 'The Goal'

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    This document provides a book review and summary of "The Goal" by Eliyahu M. Goldratt. It introduces the characters and plot of the novel, which follows plant manager Alex Rogo as he works to save his factory from closure. It also summarizes key concepts from the Theory of Constraints developed by Goldratt, such as identifying the true goal of an organization and focusing on bottlenecks to improve throughput. The review explains that the book uses a story format to illustrate how to approach problems deductively and challenges common business practices and performance metrics.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    300 views8 pages

    The Goal

    Uploaded by

    Nazeem Musa
    This document provides a book review and summary of "The Goal" by Eliyahu M. Goldratt. It introduces the characters and plot of the novel, which follows plant manager Alex Rogo as he works to save his factory from closure. It also summarizes key concepts from the Theory of Constraints developed by Goldratt, such as identifying the true goal of an organization and focusing on bottlenecks to improve throughput. The review explains that the book uses a story format to illustrate how to approach problems deductively and challenges common business practices and performance metrics.

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    You are on page 1of 8
    At a glance
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    Some of the key takeaways from the book are that the true goal is to make money, productivity is meaningless without knowing the goal, and the bottleneck determines the throughput of the system.

    According to the book, the true goal of the company UniCo Manufacturing is to make money.

    The three measurements that express the goal of making money are throughput, inventory, and operational expense.

    The Goal

    Book Review
    By..
    Sadashiv Salunkhe
    XMBA 22
    Date: March 2013

    GE Confidential

    Content

    1. Executive Summary - The GOAL, Business Novel


    2. Author
    3. Characters & Story Plot
    4. TOC Concept
    5. Key Learning's

    Executive Summary - The GOAL, Business Novel

    The Goal is an international bestseller business novel. It was authored by Dr. Eliyahu
    M. Goldratt and Mr. Jeff Cox and was first published in 1984

    The Goal demonstrates the effectiveness of Socratic way of approaching and


    resolving problems, Deductive process

    gives significant insight into the day-to-day life of an operations manager and
    challenges common business practices and thought processes.

    It breaks the myth of true performance measurement & the real Goal of any
    company, productivity and efficiency of plant operations

    The book aims at explaining the validity of and logic behind Dr. Goldratts Theory of
    Constraints

    Characters & Story Plot


    Characters:
    Mr. Alex Rogo Plant Manager UNICO
    Dr. Jonah Alexs ex-teacher and physicist
    Julie Alexs wife
    Mr. Bill Peach - The division vice president, Alexs Boss
    Alexs Staff BOb (Prd mgr), Ralph (Dat procsessor), Stacey (Inventory controller)
    Story Plot:
    The story describes the exciting journey of one Mr. Alex Rogo is the plant manager at one
    of the manufacturing units of UniCo in a town called Bearington. UniCo has been running
    in losses for the last few years On the other hand, a parallel storyline depicts the marital
    problems faced by Alex with his wife Julie. This highlights the difficulties faced by
    managers, especially those who are obsessed with their work, in their personal lives.
    The story begins at a point when Mr. Bill Peach, the division vice president, asks Alex to
    make his plant profitable within three months. In case of failure, the plant was to be shut
    down by the management. Alex has the option to look for another job, but he decides to
    do whatever he can to save the plant. Here, he recollects a conversation he had with Dr.
    Jonah, when the latter, through a few simple questions, convinced Alex that the hi-tech
    robots in his plant are not contributing to the actual goal of the company. He also
    encouraged Alex to figure out the true goal of his organization. Faced with grave
    difficulties, Alex figures out that the true goal of the company is to make money.

    Author
    Eliyahu Moshe Goldratt (March 31, 1947 June 11, 2011)
    Dr. Goldratt was an Israeli physicist, who later became a
    business management guru.
    originator of the Optimized Production Technique, the Theory
    of Constraints (TOC), the Thinking Processes, Drum-BufferRope, Critical Chain Project Management (CCPM) and other
    TOC derived tools.
    The Goal (1984) TOC process
    for improving organizations
    The Race (1986) further
    develops the logistical system
    called drum-buffer-rope (DBR)
    Critical Chain (1997) applies
    TOC to project management
    Necessary But Not
    Sufficient (2000) applies TOC
    to Enterprise resource
    planning (ERP)

    A small stint with Creative Output - Optimized Production


    Technology (OPT). OPT was billed as the first software to
    provide finite capacity scheduling for production
    environments
    Avraham Y Goldratt Institute AGI (1985) - self-funded Goldratt
    Group continued work on TOC

    TOC Concept & Theory


    The theory of constraints is an important tool for operations managers to manage
    bottlenecks and improve process flows.
    theory states, the throughput of any system is determined by one constraint (bottleneck).
    Thus to increase the throughput, one must focus on identifying and improving the
    bottleneck or constraint.

    Key
    TOCLearning's
    Concept
    It is important to know what ones true goal, In the case of UniCo Manufacturing in this
    book, the goal is to make money. Although it sounds simple and obvious, it is the reason
    for the company's existence. Everything else is just a means to achieving the goal.

    The three measurements which express the goal of making money are throughput,
    inventory and operational expense. Throughput is the rate at which the system generates
    money through sales. Inventory is all the money that the system has invested in
    purchasing things it intends to sell. Operational expense is all the money the system
    spends in order to turn inventory into throughput.
    Productivity is the act of bringing a company closer to its goal. Productivity is meaningless
    unless you know what is your goal.
    A balanced plant is where the capacity of each and every resource is balanced exactly with
    demand from the market. However, the closer you come to a balanced plant, the closer
    you are to bankruptcy because the goal is not to improve one measurement in isolation,
    but all three.
    Maximum throughput of a system is determined by the constraints in the system.

    Thank You!

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