The Goal : A Process Of Ongoing Improvement

1890 Words8 Pages
Throughout the entirety of the book, The Goal: A Process of Ongoing Improvement, author Eliyahu M. Goldratt focuses on demonstrating the importance of the Theory of Constraints and what corporations should do in order to increase profits. A major term used throughout the novel is “throughput,” which according to the text, is “the rate at which the system generates money through sales” (Goldratt 60). Once a bottleneck machine in a production process is identified, there are multiple ways to increase throughput without expanding the physical capacity of the machine. The first way throughput can be increased is by making sure that the bottleneck’s time is not wasted. According to the text, this means that a bottleneck should never be sitting idle or working on defective parts. When a bottleneck is down for an hour, it is not only the cost of the bottleneck that is lost, but the cost of the entire system. This is because the bottleneck’s capacity is equal to the entire system’s capacity, and whatever a bottleneck produces in one hour is what the corporation produces in one hour. In addition, if a bottleneck works on defective parts or parts that are not needed, it is a waste of time that the bottleneck could be spending on good parts that are needed. Without good parts from a bottleneck, you can’t sell a product or generate throughput. Next, corporations should always have at least one worker on standby at each of the bottlenecks to ensure that they are never sitting idle. Lunch
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