The Goal Book Pdf by Eliyahu M. Goldratt

 by Eliyahu M. “Eli” Goldratt is a business novel that has stood the test of time very well. Its lessons about flow and bottlenecks are still universal and yet tricky to implement in practice.

This is where the fiction style comes in. The first-person present-tense narration is never grating but instead helps to activate one’s own mind – which in turn makes the material so much more memorable.

The story format makes for a pleasant read while providing great content. Can it seem simplified and idealistic in parts? Sure, yet I wouldn’t change it. Read it, think about it, and look for ways to apply the logic.

An underlying theme is not just about constraints. It is about how we need to learn. Throughout the book, the coach asked key questions but does not just give answers. We must all ask the right questions and more important struggle to find answers that work in our environment. This is lasting learning.

1. The Goal Book Review By. Sadashiv Salunkhe XMBA 22 Date: March 2013 GE Confidential

2. Content 1. Executive Summary – The GOAL, Business Novel 2. Author 3. Characters & Story Plot 4. TOC Concept 5. Key Learning’s

3. 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 the 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. Goldratt’s Theory of Constraints

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 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.

5. Author Eliyahu Moshe Goldratt (March 31, 1947 – June 11, 2011) Dr. Goldratt was an Israeli physicist, who later became a business management guru. the originator of the Optimized Production Technique, the Theory of Constraints (TOC), the Thinking Processes, Drum-Buffer-Rope, Critical Chain Project Management (CCPM), and other TOC-derived tools. The Goal (1984) TOC process for improving organizations A small stint with Creative Output – Optimized Production Technology (OPT). OPT was billed as the first software to The Race (1986) further develops the logistical system to provide finite capacity scheduling for a production called drum-buffer-rope (DBR) environments Critical Chain (1997) applies Avraham Y Goldratt Institute AGI (1985) – self-funded Goldratt TOC to project management Group continued work on TOC Necessary But Not Sufficient (2000) applies TOC to Enterprise resource planning (ERP)

6. TOC Concept & Theory The theory of constraints is an important tool for operations managers to manage bottlenecks and improve process flows. the 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.

7. Key Concept TOCLearning It is important to know one’s 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. The maximum throughput of a system is determined by the constraints in the system.