Book review :THE GOAL: PROCESS OF ONGOING IMPROVEMENT

PIONEER OF THEORY OF CONSTRAINTS

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GENRE  Management Guide

AUTHOR Eliyahu M. Goldratt

YEAR OF PUBLISH 1984 (First edition), 2014(30th Anniversary edition)

PAGES  393

OTHER BOOKS FROM AUTOR  Its not luck, Critical Chain, Beyond the goal



ABOUT THE AUTHOR

E M Goldratt's "The Goal" has been a best-seller since its inception in 1984 and is considered one of the best selling management books of all time. He is the founder of TOC for Education, a nonprofit organization dedicated to bringing TOC tools and & teachers among teachers and students. Dr. Goldratt currently spends his time in teaching and consulting.

SUMMARY OF THE GOAL

The Goal is about new global principles of manufacturing. It is about people trying to understand what makes the world tick and how can be improved. It discusses ideas such as:

  • Theory of Constraints (TOC).

  • Eliminating  competition.

  • Understanding team members. 

  • Bottlenecks and many more.


The complete teaching is around a story. From the eyes of a plant manager, Alex Rogo, who got to work things out for a loss-making plant in the deadline of three months or it will be closed. 

Alex meets Jonah, his college professor. As the discussion begins; Alex argues that he is running an efficient plant, like, machines running 90% of the time, cost per unit are low, no one is fired. 


 

 

Still, John tells that he running an inefficient plant". Both came up with different definitions of productivity. John points- high inventory, even for some kind of products-their sales were decreasing against a competitor, the market was also on the rise, so why they are loosing?. 

 

 

Alex took  time to understand this new theory of management. Followed by a discussion on the clear meaning of Goal. 

What actually goal is-

  • to make a product.
  • increase market share.
  • quality.
  • increase shareholder value.
  • support in the national economy.

 

Then he came up with-"why it is important to have a goal?", about continuous improvement(Deming teachings). Financial measure to check these progress like net profit, return on investment,  & clash flow. Are  they sufficient to make decisions?. 

 

 


 

 

 

John came up with operational measures to describe the goal. It includes 

  • Throughput
  • Inventory
  • Operational expenses and their calculations. 
  • The combination of financial and operational measures.

 

The story also covers what, when & how the implementation of robots will be fruitful. The final definition of Goal came up was reducing inventory, operating expenses & increasing throughput.


REVIEW OF THE GOAL


Being educated in Operations Management along with my few readers, the concepts seemed quite familiar. But to know its source, it is "one of its kind experience". 


I highly recommend this book to my  audience. It gives profound knowledge, focuses on manufacturing and interdepartmental connection. 

Here, the approach was to generate a profit-making system, with optimally linked departments having a common goal. This philosophy can be applied at any sphere of a professional or personal level. 

The majority of writing is conversation or monologue. I was able to feel Alex's workload, his unlearning to re-learning. These events, although fiction, is projected to real with ground problems faced in the industry. It is like a default book you have to read, after joining professional life. One or the other day, your senior will surely recommend this. Be a step ahead. 


 

 

 

 

 

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4 comments:

  1. No business can grow unless until u have a good chain link. Like u people who is connected with master in operation but will be useful others business operator also like Dhirubhai Ambani 's DHANDHA. Realy it is always better relearning rather unlearning. Men must go ahead with this book in order to gain optimum knowledge. Weldon reviewer.

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  2. Worth reading... Though the setting of this 'management' fiction is a manufacturing plant, the theme of constraint exists in all industries.. one cannot have all of the advantages of an industry in operation and has to compromise on certain things.. it is the art of doing the best with the availble time, space and resoirces that makes a business efficient and sooner or later, profitable as well.

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    Replies
    1. Rightly said, this work was certainly a disruption in conventional philosophy

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