The Goal- Book Report

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Book Report: The Goal

This paper is a book report on the novel entitled The Goal written by Eliyahu Goldratt and Jeff Cox. The 40-chapter book is actually a business book written in the form of a novel that makes it interesting to read unlike other business textbook. As a novel, the book is entertaining but at the same time, very informative for management or accounting students as well as for the real-life company managers and CEOs who wanted to apply different managerial practices. The paper summarizes the novel and makes analyses in relation to Operations Management.

The novel took place at a fictitious town called Bearington where the Uniware manufacturing plant of the UniCo company is
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He told Jonah that the plant he is working with installed some robots that have increased productivity by 36%. Jonah replied with “so your company is making 36% more money from your plant, just by installing some robots?” Alex said no and Jonah asked again “was your plant able to ship even one more product per day as a result of what happened in the departments where the robots were installed?” Alex answered again with a no while Jonah asked again if the plant has fire anybody and if the inventories go down but Alex’s answers are no. Jonah again asked “with such high efficiencies you must be running your robots constantly? Alex said yes and Jonah continued with predictions that the plant’s inventory is very high and Alex’s plant can not deliver products on time. Jonah added that Alex thinks he is running an efficient plant but he is not.

Through that conversation, Alex realized that “productivity is the act of bringing a company closer to its goal” ( 1992). Alex thought the company’s goal is to increase efficiencies but he later realized that every company’s goal, including his plant, is to make money or to be profitable and anything that comes closer to the goal is considered as productive.

Due to this realization, the next thing he did was to talk to the plant’s accountants to determine how the company can make money. The company will have money if the net profit increased along with the return on
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