The Goal By Eli Goldratt

Given three months to turn the plant around, Alex turns to Jonah, his old college physics professor who has become a manufacturing consultant, and enlists his help. Jonah has a unique and potentially risky approach to addressing the problems at the plant. First, he takes what can be a complicated

The main character in “The Goal”, Alex Rogo, manages a production plant that is unprofitable and not efficient with its resources. Alex is given a short amount of time to turn the operations at the plant around and make it an efficient, successful production plant. Throughout the book, Alex Rogo speaks to Jonah a number of times and learns a great amount of information from him. The first significant time that Alex and Jonah spoke was during their chance meeting at an airport lounge. During this conversation, Alex learned a great deal about productivity and goal setting. Jonah explains to Alex that a company has one goal and that the manager must be open about the goal. Jonah then discusses the definition of productivity with Alex and tells him that the true definition is bringing a company closer to its goal that it has set. Among these concepts that Alex learned, he also learned more about his own management style and how it could be improved. Alex learned that he must question common concepts regarding managing and that he must think differently in order to be successful.

All businesses face constraints. The limiting factors of time, influence, money, and labor play a factor in economic decisions. At some point, a short term working plan is developed from the perspective of “what can we do with what we have currently”? Should we stay the course, or make some adjustments? These decisions are important to the health of the organization. Saturation points become very important considerations. Just like a pitcher of water can sustain only so much sugar in a solution before sugar crystals will fall

The Plant Managers are listed as the Business Units. Those individuals are Rylee and Tyler. They have a high level of power but have lower interest in the project than the previous

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.

A few days into the new school, Edgar met this guy named Alex. He was 16 years old and a running back on the football team. Alex was huge for his age. Edgar bumped into Alex on accident in the crowded halls between

I never thought a book could give me the power to want to follow my dreams. I’m not a big fan of reading, but when I started to read the book Breakaway; Beyond the Goal by Alex Morgan, I told myself “you are going to play on the United States women's national team, no matter what stands in your way.” There's no way I’m going to give up on that goal, even if there are many bad days along the way. If I were to have not come across this book, there might have never been this dream of playing professional soccer. Also, there might not be any determination in me to try to reach my goal. This book has motivated me to try to do many things, and I am promising my self I am going to do all of them.

Alex stumbles upon his old professor Jonah, who introduced him to the theory of constraint. Jonah states three essential tools of measurement for everything in the plant "Throughput is the rate at which the system generates money through sales."; "Inventory is all the money that the system has invested in purchasing things which it intends to sell"; and "Operational expense is all the money the system spends in order to turn inventory into throughput" (Goldratt & Cox, 1984, pp. 60-61). These new ideas create a puzzle for Alex: What is the goal of Unico manufacturing plant? He keeps wandering and drifting his thought about what the goal of his plant is. After food and beer, it strikes Alex that the ultimate goal is to make money (Goldratt & Cox, 1984, p. 41). In order to make more money for the plant there should be an increase in throughput and a decrease in inventory as well

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.

She asks him what the assignment is about and he explains to her that it is an analysis essay on the novel he is currently reading in class. He has not yet done any assignments for the novel and has failed every quiz on the novel. In addition, Alex needs to catch up on his other classes as well. He still has to finish the novel due to the fact that he is only on chapter 2. Chloe says “Alex! Do it now so you can get everything finished quicker!” and all he says is “I will tomorrow I

The story begins with outlining the problems Alex Rogo is facing. His plant is incredibly

into a fictional story line of a plant mangers and his life. And his life includes his work as

The Theory of Constraints indicates that excess capacity from ‘subordinate’ departments should be utilized to lessen the strain on the bottlenecked department. Until the constraint on production has been removed management should subordinate everything else to the constraint. The proposed action of outsourcing inspection from the coating and sharpening department will free-up more valuable direct labor hours in the area of constraint. A separate inspection station before the final stage of production should be added to the production process. An employee from the chemical bathing stage will be cross-trained to inspect products as needed for the brief periods of inspection required. Because the second process has been deemed subordinate to the area experiencing constraint its excess capacity can be utilized in a more valuable capacity. Each additional hour in the coating and sharpening process will result in a firm benefit of $1250, or the contribution margin per unit of constraint for the Model C210. The addition of an inspection

The one and only goal for any company should be to make money. Under the theory of constraints, everything that goes towards achieving that particular goal is productive and everything that doesn’t is unproductive. The first bit of advice Jonah gives to Alex involves the big picture view of what is wrong with the plant. Jonah mentions high inventories and failure to achieve shipping dates as most likely the main problems being faced, and asks Alex multiple questions, without giving answers. This back and forth between Alex and Jonah can be described as the socratic method. This method allows a series of questions to be asked but left up to interpretation, so there is no answer given, but critical thinking is required to find a solution. After this method works to perfection and Alex figures out the answer to these questions, he immediately sets up a meeting with an accountant and they outline what is needed such as increasing net profit, return on investment and cash flow.

The goal of a manufacturing organization is to make money. Jonah poses this as a question: "What is the goal?" and Rogo actually struggles with it for a day or two, but any manager or executive that can't answer that question without hesitation should be fired without hesitation.