| The Goal: A Process of Ongoing Improvement |  | Authors: Eliyahu M. Goldratt, Jeff Cox
Publisher: North River Press
Category: Book
List Price: $24.95
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Seller: hemnfitz
Rating:  144 reviews
Sales Rank: 337
Media: Paperback
Edition: 3rd Revised
Pages: 384
Number Of Items: 1
Shipping Weight (lbs): 1.5
Dimensions (in): 8.9 x 6 x 1.2
ISBN: 0884271781
Dewey Decimal Number: 823.914
EAN: 9780884271789
ASIN: 0884271781
Publication Date: July 2004
Availability: Usually ships in 1-2 business days
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Product Description
In this intriguing, readable business novel, which illustrates state-of-the-art economic theory, Alex Rogo is a UniCo plant manager whose factory and marriage are failing. To revitalize the plant, he follows piecemeal advice from an elusive former college professor who teaches, for example, that reduction in the efficiency of some plant operations may make the entire operation more productive. Alex's attempts to find the path to profitability and to engage his employeesi n the struggle involve the reader; and thankfully the authors' economic models, including a game with match sticks and bowls, are easy to understand. Although some characters are as anonymous as the goods manufactured in the factory, others ring true. In addition, the tender story of Alex and his wife's separation and reconciliation makes a touching contrast to the rest of the book. Recommended for anyone with an interest in the state of the American economy.
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Showing reviews 1-5 of 144
 The Theory of Constraints (TOC) will change the way you think February 12, 2006
Avinash Sharma (Toronto)
291 out of 295 found this review helpful
Eliyahu Goldratt's "The Goal" is an entertaining novel and at the same time a thought provoking business book. The story is about a plant manager, Alex Rogo, whose plant and marriage are going downhill. He finds himself in the unenviable position of having ninety days in which to save his plant. A fortuitous meeting with an old acquaintance, Jonah, introduces him to the Theory of Constrains (TOC). He uses this new way of thinking to ...
TOC postulates that for an organization to have an ongoing process of improvement, it needs to answer three fundamental questions:
1. What to change?
2. To what to change?
3. How to cause the change?
The goal is to make (more) money, which is done by the following:
1. Increase Throughput
2. Reduce Inventory
3. Reduce Operating Expense
Goldratt defines throughput (T) as the rate at which the system generates money through sales. He also defines inventory (I) as everything the system invests in that it intends to sell. Operating expense (OE) is defined as all the money the system spends in order to convert inventory into throughput.
The author does an excellent job explaining his concepts, especially how to work with constraints and bottlenecks (processes in a chain of processes, such that their limited capacity reduces the capacity of the whole chain). He makes the reader empathize with Alex Rogo and his family and team. Don't be surprised if you find yourself cheering for Alex to succeed.
The importance and benefits of focusing on the activities that are constraints are clearly described with several examples in "The Goal". One example from the book is the one in which Alex takes his son and a group of Boy Scouts out on a hiking expedition. Here Alex faces a constraint in the form of the slowest boy, Herbie. Alex gets to apply two of the principles Jonah talked to him about - "dependent events" (events in which the output of one event influences the input to another event) and "statistical fluctuations" (common cause variations in output quantity or quality). He realizes that in a chain of dependent processes, statistical fluctuations can occur at any step. These result in time lags between the processes that accumulate and grow in size further down the chain. This leads to the performance of the system becoming worse than the average capacity of the constraint.
It is interesting to note that TOC practitioners often refer to TOC concepts in terms of references from this book. For example, a constraint is often called a Herbie.
The Goldratt Institute (goldratt dot com) has illustrated TOC Analysis in the form of five steps used as a foundation upon which solutions are built:
1. Identify the constraint
2. Decide how to exploit the constraint
3. Subordinate and synchronize everything else to the above decisions
4. Elevate the performance of the constraint
5. If, in any of the above steps the constraint has shifted, go back to Step 1
Although this book is excellent in the context of Operations, the "Goal" to "make (more) money by..." is limited in its focus. It is concerned with the cost centers internal to a business. Business performance in today's increasingly competitive market depends on a variety of factors that exist outside the business. These include competitors, external opportunities, customers and the non-customers. Executives need to focus on these in order to see the bigger picture.
This book is necessary reading at the best MBA programs. In addition to being a review, this write-up was intended to serve as a summary of the core concepts of this book and TOC. If you are reading this as part of your coursework, please feel free to share the link with your fellow students.
It' so much more than a business book on meeting the goal December 5, 2005
Kent Holland (Vienna, VA)
7 out of 8 found this review helpful
I didn't know what to expect when I began reading this novel about a manufacturing plant. As provider of a professional (legal and risk management) services, I initially thought this wouldn't have much application for me. But it certainly does. First, the story itself, told as a novel, is an enjoyable read. This must be the first business book that I didn't want to put down until I had finished reading it from cover to cover!
Key points in the book include the principle of finding and then focusing on the one true goal and not getting caught up on a lot of side issues that others (even others in management) might think are the goal. This requires learning how to stop and really look at the problem. It then requires new ways to look for and try potential solutions. This includes ask penetrating questions of yourself and others who may provide key information and insights. And it requires really listening to what the affected people have to say about different aspects of achieving the goal.
An important point that is made is that every individual within the organization has part of the knowledge needed to reach the goal, and that we need to create a genuine environment where we not only encourage their participation but we also teach everyone how to ask the right questions so they can see for themselves what needs to be done to achieve the goal.
Incidentally, the partnership of communication that ultimately develops between the lead character and his employees and superiors overflows into his relationship with his spouse and naturally changes their relationship as well. There is much to be learned from this book, and I can see why it has been such a huge success for so many years.
A manufacturing based novel that changed my view of software! May 20, 2006
Matthew D Edwards (Des Moines, Iowa)
3 out of 3 found this review helpful
I'm always searching for ideas that discuss how people solve common problems. This book, while perhaps targeting manufacturing spaces, has application in life - software inclusive.
Written in the form of a novel .. I couldn't put the book down. There were examples within examples .. parallel concurrent story lines .. golden key points that were first implied, then stated, then listed with supported logic.
I'll have to read it multiple more times for a) a refresher, and b) to pick up and apply things I overlooked the previous time(s).
Flow, constraints, waste, cost structures, team utilization, work prioritization, etc. I easily find parallels between this material and Agile software development ideology. Cross-pollenization between industries and ideas. Software heads should have to read this book and translate the fundamentals across to the software solution delivery streams. While they don't match up 1:1 .. they share commonalities brought to light by this book.
Theory of Constraints explained and its wide applications revealed June 2, 2007
J. Revel (USA)
3 out of 3 found this review helpful
The Goal is a fascinating book about the Theory of Constraints which was introduced to the world by Eliyahu Goldratt. I must admit the title didn't appeal much to me, but bought it anyway because it was recommended highly. After reading it, I realized that the title was perfect since it plays well into the questioning that needs to take place in order to identify the constraint or bottleneck in an organization. The book is written as a novel, which makes the book a lot easier to read and also a lot more entertaining
Alex Rogo is a plant manager and at the beginning of the novel is greeted at his plant by the VP who informs him that his production numbers need to improve or they will be shutting down the plant. Of course, during all this mess Rogo is also going through a rocky marriage and throughout the book the reader is taken through the struggle of both issues.
Alex seeks advice from an old Physicist from Israel named Jonah. Jonah takes Alex through the Socratic method of analysis which is the way Alex then communicates with his management team to solve the issues causing the low throughput in the factory. The conversations that take place between Jonah, Alex and the entire management team are extremely interesting and informative. I wonder how often this level of discussion actually takes place, but it sure makes for interesting reading.
A lot of the applications of the theory of constraints, although they take place in the factory, could be easily implemented in all industries.
Mr. Goldratt has written a business book that will remain relevant for many years to come. I highly recommend this incredible business book. Anyone who does business consulting and does not read and use the information on this book is doing his/her clients a great disservice.
Of course, read this book! June 13, 2005
Cenk Sumbas (Florida)
2 out of 2 found this review helpful
Every engineer, every MBA candidate, every manager must read this book. It gives very simple and clear explanation of manufacturing side of life. Bottleneck concept can not be explained better than this. Technological advancement (like robotics, in this book) needs some adaptation time. This book helps to minimize that adaptation time. Also, he defines real metrics of success "Money". He suggests that every manager should ask himself "How much money I made for my company". This is the goal to attain, do not go with other secondary measurements.
Showing reviews 1-5 of 144
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