Wednesday, April 27, 2011

The Goal

Author: Dr. Eliyahu Goldratt
Book Review:

This is book is entirely about new global principles of manufacturing. Its about people trying to understand what makes their world tick so that they can make it better. As people go on thinking logically and consistently about their problems they go on determining the cause and effect relationship between their actions and their results. In the process they deduce some basic principles which they use to save their plant and make it successful.

Here Alex Rogo , who is a plant manager is constantly fighting to meet the output requirements of his business. There are conflicts amongst various departments of his organisation including marketing, operations, finance and production.

Jonah, a management guru, gives Rogo a few suggestions using which he learns to identify and manage the problem areas in the operation.

Specifically, Rogo identifies production bottlenecks that are the critical points determining the rate of production of the operation. He then develops strategies for overcoming or living with the bottlenecks.

A bottleneck is actually fairly easy to identify. In a manufacturing environment, there is lots of raw material and work-in-progress at any point wherever you go. In a service environment, there are lots and lots of files in anybodys office.

Goldratt's ideas are widely applicable in manufacturing and service environments.

By studying and applying these ideas, one could improve one's organizational effectiveness and productivity, free up capital tied up in excess inventory, reduce customer frustration and reduce organizational anxiety.

I would suggest all of you to read this book at the earliest....!!!

1 comment:

  1. To add to what Lloyd said, there are three words in the book that are of utmost importance:

    1. Inventory
    2. Operational Expense
    3. Throughput

    because

    "The goal of a business is to make money; increase throughput, reduce inventory, and reduce operating expense."

    Read it ! Enjoy it !

    ReplyDelete