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Book Review - "The Goal: A Process of Ongoing Improvement": - Eliyahu M. Goldratt, Jeff Cox
Book Review - "The Goal: A Process of Ongoing Improvement": - Eliyahu M. Goldratt, Jeff Cox
The Goal has remained a perpetual brand leader ever since it was
published and is a book designed in such a way to attract audiences from
diverse compass,be it college students,CEOs of organizations,production
managers,accountants,teachers and people at all levels since it is easy to
grasp because of its comprehensible and penetrable storyline.Eliyahu
has used fundamental common sense as the core view to approach the
production world.The novel has been an authentic success in predicating
the problems faced by todays’ managers in almost all the existing
businesses.Also,it has emerged triumphant in advocating and
propounding constructively practicable solutions,interpretations and
measurements for the same.
Alex and his team consequently realize that the goal of the plant as well
as the division was not cost reduction techniques or cost effective
purchasing,latest technology,quality products,customer
satisfaction,market share,but the quintessential eventual goal is to Make
More and More Money.Nothing was superlative to this goal,and only
achieving this milestone could save them from all the odds.Meanwhile
battling theough all this,Julie,who had been quite upset over Alex’s
demeaning behaviour towards her,moves over to her parents’ house
secretively,which Alex took no time to find out.But as the operations at
the plant normalize,Alex turnt out to be more diverted towards his
family,comprehending every way possible to win back Julie and tried
spending more time with her.
In its own unique way,The Goal has been engaging the readers
ardently,disproving the many scientific ideas and realms which are being
followed ever since invented.Working and Making Money are
contradictory forces.Not all that we invest in working accounts to being
converted into prodit or money making.Net Profit,Return on Investment
and Cash Flow should be elevating substantially in a business.It can be
subtly deduced from the book that the three money measrements which
should predominantly be embarked upon while carrying business are:
Throughput
Inventory
Operational Expense
Throughput is the incoming money through sale of products.Inventory is
the money inside the business invested in the products yet to be
produced to sell.Operational expense is the money paid to arrive at
throughput from inventory.The Goal has actually made the people realise
through practical terms that the business can flourish only when
Throughput is winging high,along with both the Inventory and
Operational Expense levelling down concurrently.
As per Jonah’s logic,we have also come to savvy that a plant where
everyone is under constant work is very inefficient,and he has explained
this through the use of terms like Dependent Events and Statistical
Fluctuations.The constraints,ie the Bottlenecks,should be wisely
identified in the process,exploited and then sequencing should be based
positioning the bottleneck.