The Goal Book Report

The Goal by Eliyahu M. Goldratt is about a plant manager named Alex Rogo and his quest of knowledge to make his company profitable again. Alex does this while battling family issues at home with his wife. In the beginning, Alex has no idea where he is going to start or even understand why they are losing money. Everything that he reads according to the numbers of the company says that he is running a very efficient company.

Situation Analysis - The Jackson Plant an older, established unit in the Rose Co. has not operated satisfactorily for several years. The Board of

company’s finished goods inventory has shot up to a 60 days supply – twice the normal level. In addition,

Alex comes up with the consensus that the “Goal” of his business and many others is to increase net profit while simultaneously increasing return on investment and their cash flow at the plant. This basically means to make money. These three measurements can be achieved by looking closer into his second set of measurements. Alex specifically must find a way to increase throughput while at the same time decreasing it inventory and operational expenses. All three of these measurements must be cautiously monitored since they all rely on each other to be obtained in balance. Factors that cause throughput, inventory, and operational expenses to become unbalanced are excess manpower and balance capacity of the demand of resources in the market.

It is stressed in the Goal that there is a massive difference between throughput and efficiency. The novel makes the case that having an efficient operation does not equate to profitability. What does equate to profitability is to increase the throughput of any given operations system. Jonah tells Alex, “Throughput, is the rate in which the system generates money through sales.” (Goldratt, E.M. (2014), The Goal, pg. 60). Jonah goes on to explain to Alex that inventory is all the money that was invested in purchasing things that the system intends to sell. (Id). Furthermore, operational expenses are those costs that are required to turn inventory into throughput. (Id, at pg. 61). The definitions of these three measurements are not standard definitions for an MBA student. It is an interesting perspective on how to view operations.

Alex comes up with the consensus that the “Goal” of his business and many others is to increase net profit while simultaneously increasing return on investment and their cash flow at the plant. This basically means to make money. These three measurements can be achieved by looking closer into his second set of measurements. Alex specifically must find a way to increase throughput while at the same time decreasing it inventory and operational expenses. All three of these measurements must be cautiously monitored since they all rely on each other to be obtained in balance. Factors that cause throughput, inventory, and operational expenses to become unbalanced are excess manpower and balance capacity of the demand of resources in the market.

The Goal Book Report by Eric Vargas Lopez The Goal is the story of plant manager Alex Rogo and his position as manager of a manufacturing plant for Unico. Alex arrives one morning to the plant to find his boss Bill Peach the Division vice-president parked in his spot, Rogo walks into the plant and finds that Bill Peach is waiting for him at his office to discuss order #41427, after a heated conversation Bill warns Alex that he must turn around the factory within 3 months and shipped order #41427 that same day or he will have to shut down the factory. Alex rush to the manufacturing floor looking for Bod Donovan the production manager to discover that Tony the master machinist of the NCX10 has quit as a result of Bill Peach’s visit. The NCX10

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

Referring to Vice President of Finance, he want to pursue the current approach because they are in profitable based on contribution margin by 35 percent. The company just needs to monitor their margin in control their cost well.

The book has two parts. In the first 264 pages, a manufacturing plant manager turns his failing plant into a tremendous success. That part of the book ends with the manager's promotion to a position with oversight over several failing plants. In the second part of the book (73 pages), the manager prepares for his new job by trying to deduce a repeatable "process of ongoing improvement." He's trying to make sense of what happened in the first part of the book so he'll have half a chance of repeating that success on a greater scale.

The book The Goal, written by Eliyahu M. Goldratt, is about the manufacturing process and how it works together to achieve the goals of a firm. The Goal is about science and education. It is an attempt to show that we can postulate a very small number of assumptions and utilize them to explain a very large spectrum of industrial phenomena. The Goal is about new global principles of manufacturing and people thinking logically and consistently about their problems and therefore able to determine “cause and effect” relationships between their actions and the results. In the process some of the characters in the book, Alex Rogo - who is the plant manager, Jonah - a physicist and old friend of Alex, Stacey Patazenik – who manages inventory

As higher demands continued to be placed on GMM’s production and distribution operations, its transportation network lacked collaboration. In effect, each operation was making individual logistics decisions, creating costly redundancies and inefficiencies throughout the supply chain. However, On-time delivery is critical in their business, and they consistently meet their customers' requirements. With cost, service and punctuality always at the forefront, consolidates shipments, manages carriers, and optimizes air, sea and ground routes. (Penske, 2010)

The book is about a plant manger in a manufacturing company, Alex, who was hired in this position six months ago. His plant was suffered because it was running with neither profitability nor productivity. His boss, Mr. Peach, told Alex that the plant will be shut down in three months unless shows some improvements. Alex then, meets with

Book Review of "Goal" 1. What is the problem? Alex Rogo was a plant manager at the Barrington Plant of Uniware, a division of UniCo. One day Bill Peach, division vice president visited his plant and found that there were lots of problems with schedule arrangement, quality, cost & inventory control in his plant. These problems had already made the organization lose money. At last Bill gave Alex three months to improve, otherwise, the plant would be closed. Three months?! That was all Alex Rogo was able to think about. Alex had to start to consider what was the goal of the manufacturing organization. What on earth was the GOAL of the manufacturing organization? Was it better customer service? Larger market share? Lower cost? High quality?

The goal is a very interesting story. It is more about a plant manager who faces personal and professional challenges. Alex earns a master’s degree in both Engineering and Business Administration. He works as Engineering Manager at UNICO Company, which produces a variety of finished goods for another plant and used as component item. His logical philosophy, family issues, and top management pressure makes him a creative and successful manager in the world of business.