The Goal : Eliyahu M. Goldratt And Jeff Cox

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The Goal Eliyahu M. Goldratt & Jeff Cox Russel Jay Eserjose “The Novel That is Changing American Business”, The Goal, written by Eliyahu M. Goldratt and Jeff Cox is a business novel that is management oriented in order to help and improve operations management. This novel was on the Time Magazine’s list of “The 25 Most Influential Business Management Books”. It was first published in 1984, but over time it has been revised and republished three times. Goldratt is a business consultant who is acknowledged for his Theory of Constraints (TOC). He has also published other business novels such as It’s Not Luck (1994), Critical Chain (1997), Necessary But Not Sufficient (2000), and many more including nonfiction books, and other media…show more content…
Alex goes through some ups and down’s but at the end of a journey revolved around determination and perseverance, he reaches his personal satisfaction. Some other important characters are Bob Donovan, who is the plant production manager, Lou, Alex’s chief accountant, Ralph Nakamura, the data processing manager, Stacey Potazenik, the production control manager, and Julie, Alex’s wife. The first major event is when Jonah and Alex met up in the airport and came to the realization of what Alex is doing is not the way he should go about running his business operations. Alex’s goal was all about making money. It was not about productivity. When Alex was explaining what his goals were, his answers were all related to the numbers. Increasing net profit, having a high return on his investments and getting positive cash flows to help sustain the plant. Although those are imperative to have and learn from a financial perspective, Alex did not understand that and from his position, an operations management perspective, it should be about productivity. From those statistics, in production means, they will improve in the plant through increasing the throughput, and decreasing the inventory and operational expenses. Jonah states, “There are three of them. Their names are throughput, inventory and operational expense.(Goldratt, pg.60)”. Jonah defines throughput as the rate at which the system generates money through sales”. Then he
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