The Goal by Eliyahu Goldratt Essay

518 Words3 Pages
The Goal, by Eliyahu Goldratt, demonstrates the ‘theory of constraints’ in an interesting manner. It portrays clearly what the goal of a business is and suggests a number of methods that could be applied in both manufacturing and service companies - methods that are fascinating practical and logical. Throughout the book, Goldratt raises a number of issues concerning management decisions and key issues that need to be considered. Goldratt emphasizes the fact that the society itself is a source of information where flows and relationships can be applied in the business world i.e. the hiking experience. Furthermore, it encourages managers to use common sense and always consider alternative ways of doing things. Also, managers should be able…show more content…
It is widely accepted that businesses should be managed in a holistic way. The job of the manager is to identify the different interdependent constraints and try to improve the current conditions in favour of profit. To do so, Goldratt introduced the Five Focusing Steps of continual improvement: 1.     Find the constraints of the business that can include physical constraints within the business, a supply constraint, a market constraint as demand will not necessarily meet our production) and policy constraints . 2.     Identify the decisions that should be taken in order to exploit the constraints. At this point it is worth mentioning that these decisions should maximise the business output. If not, money will be invested unnecessarily. 3.     Subordinate total operations according to the above decision. Consideration has to be taken upon the fact that constraints have to be exploited fully, which implies subordination by the rest of the organisation. 4.     Elevating capacity by investing money. This step should be taken in the case where the constraints are still there after exploiting
Open Document