The Goal: A Summary

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The Goal: A summar By Eliyahu M. Goldratt This book begins with the narrator and plant manager Alex Rogo, having only what can be described as the worst day ever. His morning takes a general turn for the worse when the Division Vice President of UniCo, Bill Peach, beats him to the office and leaves a swath of general hate and discontent in his wake as he attempts to appease a dis-satisfied customer and get an order shipped immediately. Alex Rogo, attempts to smooth ruffled the feathers of foremen and workers as he makes his way to find out what has Bill Peach there in the first place. Once there, Bill explains that for starters he’s there to “light a fire under everyone” and show Al how to get an order out. During a heated…show more content…
It isn’t until he takes a trip down to the factory floor that he realizes that it’s difficult to measure the actual activities on the production floor by those same standards. There has to be a way to measure production so that one can know if the activities are moving you toward the “goal” or away from it. It’s at this point that Alex Rogo knows that he needs to find his friend Jonah again. He needs to ask him some more questions. How did Jonah know that the factory was in trouble? After some research, Alex was able to glean a phone number in London that would put him in touch with Jonah. His conversation with Jonah provided three very precise expressions of the “goal”, parameters that weren’t loaded up with things like added value because that would only complicate things. Jonah defined very precisely three parameters that would help Alex to develop operational rules for running the plant. They were; 1. Throughput is the rate at which the system generates money through sales. 2. Inventory is all the money that the system has invested in purchasing things which it intends to sell. 3. Operational expense is all the money the system spends tin order to turn inventory into throughput. He gave these measurements to Al and had to hang up but left Al with this advice; “Everything you manage in your plant is covered by those measurements. Just remember

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