Summary Goldratt

Summary of Main themes In this book, one of the main themes that Goldratt seeks to expound on is the struggles that managers go through. In their work of ensuring that the supply chain runs smoothly, managers often have to deal with a hoist of operational, human resource and even social problems that make it difficult to achieve the set goals. This book gives the story of one Alex Rogo who is facing serious consequences if the manufacturing plant he manages does not improve within three months. Managers in different companies face this typical problem, as there is a lot of pressure from supervisors. . From the details given, it is clear that the plant is not bringing in any profits, yet it is consuming a lot in terms of operational expenses. …show more content…
This is one of the most important topics discussed in this book. It is the concept that Alex is advised to use to change the fate of the manufacturing plant and avoid the consequences ahead of him. The first thing to do in application of this concept is to identify the slowest element in the whole system. These elements are referred to as bottlenecks and make it difficult for the plant to achieve smooth operations. Every company has bottlenecks and their identification and resolution can help make things move faster. The manufacturing plant in question has a number of bottlenecks, but there is a specific machine that is performing the worst. Focusing on improving the overall performance of this machine can improve order processing considerably. However, bottlenecks do not just come in form of slow machines. A bottleneck can be a worker who does not function in an efficient manner, a tradition that slows down the company or even norms or regulations that pull down the company’s operational efficiency. The process of eliminating bottlenecks is continuous, until the company or plant reaches its maximum potential. It is important to note that the focus is not on improving the efficiency of the already efficient machines or workers. These will continue to function properly, as long as the bottleneck machine increases its …show more content…
Having vague objectives in mind is not helpful and relates to poor performance. Managers have to invest time and resources to the identification and documentation of specific goals. When Alex decided to change his plants fortunes, he sat down and wrote specific goals that he needed to achieve. In this perspective, the first goal that all organization must focus on is money. If an organization is not making money, it is not meeting its core objective. Therefore, all resources and processes must be designed for the generation of income in line with the organization’s goals. Lastly, teamwork is also discussed as a major theme in this book. Alex could not achieve the goals set alone. He worked with a team that saw the vision he had for the plant. This made it easier for him to overcome the challenges and lead the plant to success. Organizations must therefore work towards increasing teamwork among its employees, from the top managers to the lowest ranking