I read this book mainly because it was assigned as assignment.
Its actually great book teaching you how to minimize the cost and optimize your process using TOC and other concepts. I had to write a book review on this book and here is what I wrote:
The goal by Eli M. Goldratt is a novel focused on Alex Rogo, who is a production manager of a company having hard time. Alex is introduced to a concept of TOC after meeting his old guru Jonah. The intention of theory of constraint, which Goldratt's most famous for, is to improve the system by identifying and eliminate the constraint that is holding back the company's performance hence increases their throughput. TOC states that, running areas with higher capacity will not increase throughput of system. Management should find are with lowest capacity, which is their bottleneck, and try to increase its capacity. Goldratt introduces 5 step models to achieve that. First, company should identify the constraints. Second, decide how to exploit constraints. Third, subordinate everything else to the above decision. Fourth, elevate the system's constraint. Lastly, if the constraint from first step is broken, go back to step 1. Throughout the novel, Goldratt tries to explain and prove the importance of TOC and his principles. In addition to these 5 steps, one should ask these three questions too. What to change? What to change it to? How to cause the change? These three questions should go along with the 5 step model when incorporating theory of constraints in business. Rogo believed that these three questions were essential to managers in order to successfully understand and apply theory of constraints. In the novel, Rogo was successful in fixing company's problem and promoted. These concepts and ideas are really relevant to any type of business and any professions. Because of the economy factors of nowadays, many companies are trying to minimize their costs and resources and I believe "The Goal" is the one of must read book that will help people to achieve it.
Its actually great book teaching you how to minimize the cost and optimize your process using TOC and other concepts. I had to write a book review on this book and here is what I wrote:
The goal by Eli M. Goldratt is a novel focused on Alex Rogo, who is a production manager of a company having hard time. Alex is introduced to a concept of TOC after meeting his old guru Jonah. The intention of theory of constraint, which Goldratt's most famous for, is to improve the system by identifying and eliminate the constraint that is holding back the company's performance hence increases their throughput. TOC states that, running areas with higher capacity will not increase throughput of system. Management should find are with lowest capacity, which is their bottleneck, and try to increase its capacity. Goldratt introduces 5 step models to achieve that. First, company should identify the constraints. Second, decide how to exploit constraints. Third, subordinate everything else to the above decision. Fourth, elevate the system's constraint. Lastly, if the constraint from first step is broken, go back to step 1. Throughout the novel, Goldratt tries to explain and prove the importance of TOC and his principles. In addition to these 5 steps, one should ask these three questions too. What to change? What to change it to? How to cause the change? These three questions should go along with the 5 step model when incorporating theory of constraints in business. Rogo believed that these three questions were essential to managers in order to successfully understand and apply theory of constraints. In the novel, Rogo was successful in fixing company's problem and promoted. These concepts and ideas are really relevant to any type of business and any professions. Because of the economy factors of nowadays, many companies are trying to minimize their costs and resources and I believe "The Goal" is the one of must read book that will help people to achieve it.
