“The Goal” – By Eliyahu Goldratt and Jeff Cox
“The Goal” is as it vividly explains, is a book on achieving goals. Eliyahu Goldratt, world famous Israeli physicist turned business consultant, the creator of the “Theory of constraints”, in his work “The Goal”, explains a lot about managerial skills, to achieve higher productivity and efficiency, in a simple and lucid manner.
Goldratt takes a very practical example of today’s world, an Engineer with an MBA degree, Mr. Alex Rogo, as his protagonist and his struggle to get a loss making company to a profit making one along with his family in the back-ground, obviously an important one, to explain the drudgeries of a manufacturing engineer’s life. Goldratt explains several management skills to
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Goldratt gives a very simple illustration of trying to find the root cause of any problem and the importance of a leader to have the goal set and also getting to learn his team’s drawbacks and positive characteristics through the following situation in Alex’s life. Alex accompanied by his son, goes for a camp and finds a lot of trouble with the leader of the trek. He gets to know about the importance of fixing a goal and the credibility of a leader in achieving the goal through his journey while in camp. Jonah advises Alex to collect sufficient data and more importantly the right data for improved efficiency. Jonah also tells him to find the bottlenecks, which are easily identifiable when walked through the process line of manufacturing, that are causing hindrance in the company’s growth and that the bottleneck had to be attacked and put to maximum utilization than a non-bottleneck. He says that putting the non-bottleneck to full utilization is an act of stupidity and this may lead to the company’s doom. He enlightens Alex about the fact that bottlenecks can never be removed but can be controlled and that a bottleneck if removed from one place shifts to some other place, and that there is always a constraint which pulls the plant from attaining higher efficiencies. He advises Alex to reduce the operational costs and to increase throughput by increasing the throughput of the constraints, no matter the cost incurred since the constraints are the ones