The Goal: A Process of Ongoing Improvement Paperback – Jul 2004
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'A survey of the reading habits of managers found that though they buy books by the likes of Tom Peters for display purposes, the one management book they have actually read from cover to cover is The Goal.' The Economist 'Goldratt's system, in essence, forces production managers and workers alike to coordinate their work-with an underlying principle in mind: that 'bottlenecks'...are what ultimately constrain the manufacturing environment.' Business Week 'This theory provided a persuasive solution for factories struggling with production delays and low revenues.' Harvard Business Review 'Like Mrs. Fields and her cookies, The Goal was too tasty to remain obscure. Companies began buying big batches and management schools included it in their curriculums.' Fortune Magazine 'Anybody who considers himself a manager should rush out, buy and devour this book immediately. If you are the only one in your place to have read it, your progress along the path to the top may suddenly accelerate...one of the most outstanding business books I have ever encountered.' Punch Magazine 'Goal readers are now doing the best work of their lives.' Success Magazine 'The Goal has always been essential reading for those looking to eliminate bottlenecks from their business. The latest edition also shows how its ideas have been applied in real life.' Works Management ' Written in the style of a novel it treats the subject of ongoing personal development in a unique way. although the scene is set in a US manufacturing company it can easily be transferred to your business. You will learn as you read this story, recognizing the changes you need to make as you progress. Definitely a book to read...' The Hairdresser --This text refers to an alternate Paperback edition.
About the Author
Eliyahu M. Goldratt is an internationally recognized leader in the development of new business management concepts and systems, and acts as an educator to many of the world's corporations. --This text refers to the Hardcover edition.See all Product Description
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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.Read more ›
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.Read more ›
Outdated concepts and situations have been laid out in a very inconsistent manner. Frankly, Alex Rogo and his team are not suited for their positions, as they never understand their job to begin with, nor the targets and plant performance, especially with an abundance of resources at their fingertips. When push came to shove, they were all ambushed by a short term target and had little clue why. Concepts so basic stumped long employed managers, a teaching that is very concerning if companies hire management recruits who do not actually understand common sense business.
Because of this, it is my opinion that this is not a proper leadership and operations management novel suited for university and corporate programs.
Strongly recommend do not buy - business has evolved so great that this is such basic concepts not worth your read.
Most recent customer reviews
As expected. A little bit of goo on the book, but wipe able.Published 3 days ago by Amazon Customer
A great book! Easy to read. Excellent business teachings.
At long last, a powerful description of my way of thinking and much more.
Excellent reading , lotsa of interesting concept . Only downside is the book is old , likely written in the 70 and there is no email/cellphone. Read morePublished 8 months ago by Alex
Great business book, written as a novel makes it an enjoyable read!Published 9 months ago by Double H
Excellent book which opens you the perspective on how decisions are made. The role of people, process and technology.Published 11 months ago by Alvaro R.
reviews important concepts useful for industrial engineering in the makingPublished 13 months ago by Gabriel Grenier
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