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The Goal: A Process of Ongoing Improvement [Paperback]

Eliyahu M. Goldratt , Jeff Cox
4.6 out of 5 stars  See all reviews (10 customer reviews)
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Book Description

June 1 2012
Revised third edition!

Alex Rogo is the manager of a failing manufacturing plant who receives an ultimatum from corporate headquarters: Turn the situation around in three months or the plant will be scrapped. With help from a mysterious mentor, Rogo discovers a revolutionary new way to do business—a way for people in any field of endeavor to increase productivity, profitability, and personal fulfillment.

A business book disguised as a novel, a love story about the manufacturing process, and an exhilarating adventure in human potential, The Goal is changing how America does business. First published in 1984, it became an underground bestseller; today it's used by thousands of companies and taught in hundreds of business schools. Includes the author's personal story, "My Saga."

This third edition includes case study interviews. Professional readers recreate interviews that David Whitford, Editor at Large with Fortune Small Business, conducts with the author Eli Goldratt and with business professionals from General Motors, Thomson-Shore, Security Federal Banks and others who put the principles of The Goal into action.
--This text refers to the Audio CD edition.

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Product Description

About the Author

Jeff Cox is the author of 17 books on food, wine, and gardening, including From Vines to Wines and Cellaring Wine. He is a contributing editor to The Art of Eating and The Wine News and is a frequent contributor to Decanter. He has been the host of two television series, Your Organic Garden on PBS and Grow It! on HGTV. Cox lives in Kenwood, California.



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ELIYAHU M. GOLDRATT is an Israeli physicist, inventor, and philosopher whose unconventional approach to business management has made him one of the most sought-after consultants in the world today. Through his lectures and writings, as well as his work with such corporations as General Motors, Ford, Proctor & Gamble, and AT&T, Dr. Goldratt continues his crusade to teach businesses to re-examine their basic assumptions in order to compete effectively in the new global market place. --This text refers to the Audio CD edition.

From AudioFile

A novel, business lesson, and wake-up call for leaders whose companies are bogged down by complacency, sloppy thinking, and bureaucratic stupidity, this 1984 text is anchored by the comforting voice of Eric Conger and a strong cast of voice actors who handle the material with immense skill. They deftly balance between the need to jazz up the dry business content and the temptation to succumb to the story's melodrama. The heroic story line seems hindered by extraneous dialogue and subplots, but the voice performances make the production hard to fault as a listening experience. The main point is that companies are profitable when archaic habits are persistently reexamined with fresh eyes for constraints and bottlenecks. T.W. © AudioFile 2007, Portland, Maine-- Copyright © AudioFile, Portland, Maine --This text refers to the Audio CD edition.

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Customer Reviews

4.6 out of 5 stars
4.6 out of 5 stars
Most helpful customer reviews
5 of 5 people found the following review helpful
Format:Paperback
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.
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4 of 4 people found the following review helpful
5.0 out of 5 stars The Goal: A great business novel Dec 3 2009
Format:Paperback
The Goal is a fantastic business novel that wraps up a whole lot of common sense that most of us miss. The novel follows Alex Rogo, a manager in a manufacturing plant that is in danger of going out of business as he and his team figure out how to get back into the black and making money. Aside from being a reasonably well written novel, the advice provided through out the book is great and has application in many more areas of business and industry than just manufacturing.

The first point of common sense it comes to is the goal of any business. In its simplest form, the goal of every business should be to make money. This gets elaborated on more in the statement: The goal is to make money by increasing net profit while simultaneously increasing ROI and simultaneously increasing cash flow. This is done through these areas:
Throughput: the rate a system generates money through sales. This is your money coming into the system.
Inventory: all the money that the system has invested in purchasing things which it intends to sell. This is money stuck in the system.
Operational Expense: All the money the system spends in order to turn inventory into throughput. This is the money going out of the system.

While all of this will likely make sense to anyone in business, the even more valuable lesson learned within the book is the importance of measuring these three areas and NOT worrying so much about irrelevant measurements, which is pretty much every other measurement we seem to use. Examples of what not to measure in manufacturing seemed to focus around efficiencies and keeping people busy while in software, it would be common measurements such as lines of code written per hour or a daily defect fix rate.
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1 of 1 people found the following review helpful
5.0 out of 5 stars genius Oct. 4 2011
By alks
Format:Paperback
I recommend this book with all my heart to the regular folk, especially to ones that find themselves putting fires out daily. I love the fact that you have to make your own deductions to learn anything out of the book, which then stays with you for a life time. Nothing is put in front of you in a silver plate. I praise Mr. Goldratt.
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5.0 out of 5 stars Easy read - well put together Feb. 24 2014
Format:Paperback|Verified Purchase
It's written as a novel which allows for easy reading. I like the analogies used to depict the theories in easy to understand examples. It's a good look into what manufacturers experience on an ongoing basis.

Enjoy
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5.0 out of 5 stars Great Understanding Oct. 18 2013
Format:Kindle Edition|Verified Purchase
Everyone reads it, and says that it makes sense, but hardly anyone does it. Doing it is the power. Concepts apply to any business of process, although project-oriented stuff requires a new level. This book will still help with basic understanding of the building block concepts. Easy read, well-written and entertaining.
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