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The Goal, By Eliyahu M. Hofstede

Good Essays

The Goal, by Eliyahu M. Goldratt, demonstrates the theory of constraints through an elaborate story of a fictional manufacturing plant. We learn throughout the story what the goal of a business is and he suggests a number of methods that could be applied in both in the manufacturing and service worlds.

Goldratt raises a number of issues concerning management decisions along with key issues that need to be considered. He uses real life experiences, such as a hiking trip, to teach the relationships of throughput, bottlenecks, and balancing the flow in the business world. He approaches the production world with common sense, using just one goal, making money, to determine whether something is productive or not productive. He also uses the Socratic Method to walk Alex, the plant manager, through a series of ideas to help him fix his plant.

The ideas that are presented are what Goldratt refers to as, a “theory of constraints.” These theories, oddly enough, are contradicting to conventional business assumptions. His idea is that the success of the entire factory is determined by the choke point, or bottlenecks that constrain the overall output. He helps to figure out where the bottlenecks are located as they could occur at the beginning, middle or the end of the manufacturing process. He also helps to identify what the bottleneck is, as it could be a machine, company regulation, or an incompetent worker, or any combination of these. The main point in identifying the

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