4.31

0

Jul 09, 2011

It is hard for me to find the right tone to review this book, perhaps I'll open by saying that of all the business books I've read this remains the most approachable, and possibly also the best value for money once the case studies in the interview with the author at the end of the book are taken into account.

Really it is built around a very simple insight - that the speed of a convoy is determined by the slowest ship, what the book does is demonstrate the effect of consistently applying this It is hard for me to find the right tone to review this book, perhaps I'll open by saying that of all the business books I've read this remains the most approachable, and possibly also the best value for money once the case studies in the interview with the author at the end of the book are taken into account.

Really it is built around a very simple insight - that the speed of a convoy is determined by the slowest ship, what the book does is demonstrate the effect of consistently applying this insight to the workings of a business.

This is the basis of Goldratt's theory of constraints. On the whole human life exists within the triple constraints of time, cost and quality (view spoiler)[I'm too lazy to think up any exceptions, but I've left the claim neutral in case any crop up - cost understood broadly ie there was a labour cost to building the pyramids even though that society had no money (hide spoiler)]. For example if a house is built quickly at low cost the quality will be low, if you want a high quality house built quickly you have to be prepared to pay for it, or compromise on the time it will take. Goldratt has the idea of focusing on a constraint and redesigning the business around it.

The Goal is a novel, a groanworthy and terrible and didactic novel, a combination which makes it a success because it doesn't take itself entirely seriously (view spoiler)[unlike the worthy, but painful The Seven Habits of Highly Effective People, or methodological rubbish like From Good to Great (hide spoiler)]. I cannot recommend reading this book highly enough as an opener to thinking about the flow of work through organisations, how organisations succeed or become dysfunctional. It's intended as a gentle introduction to the Theory of Constraints, but also opens the door to systems thinking. Editions with the extra interviews with how different businesses have applied Theory of Constraints are particularly enlightening and worth getting hold of.

The one message of the book that I found especially interesting was that eventually the greatest constraint on the fictional business in the novel is not its potential productivity but the capacity of the market to absorb its products. What I find interesting is that this is a message about the limits of the market in a business book. Maybe the boosters are correct and the ability of capitalism to invent products is near unlimited, maybe potential economic expansion could be extremely great however all that is irrelevant. The determining factor will be the size of the market. Or the inventiveness of advertisers to persuade us to want more junk.

There is a sequel: It's Not Luck which I don't find as successful a novel, partly because it is less groan-inducing and more worthy in tone but also because it doesn't go through the steps of the characters problem solving efforts in the same level of detail.

I suppose one reason why I am enthusiastic about The Goal is the part it plays in my thinking about the Industrial Revolution. There was nothing new in principle about the technologies of steam power, what changed was the ability of the market to consume - producing more is a high road to insolvency unless you can find the customers to buy your product. There maybe is the key, the world of The Goal, like our own, operates in a particular historical and sociological context, rather than a fantasy in which economic growth "to infinity and beyond", in the immortal words of Buzz Lightyear, is the solid basis in which all assumptions are rooted.

An example of the realism of the thinking (view spoiler)[at least from my own point of view (hide spoiler)] in The Goal is that at one point the protagonist is faced with the possibility of a price war - competing with other manufacturers on the basis of price alone - but this is something that he doesn't want to do. By contrast I notice from time to time the adverts for a UK furniture store which promise the purchaser that they will have nothing to pay for a year, four years free credit, or even both. A market strategy predicated on a loving relationship with their funders. Then again it strikes me from time to time just how fantastical real life is.

On the other hand there's a more basic reason why I like it. I was never any good at Maths in school and so it was from this book that I learnt that when looking at figures if the answer looks wrong, what you need to do is think about the assumptions rather than just check the calculation. It is impressive where adding up the wrong figures in the right way will get you, individually or as a society. ...more

5

May 05, 2014

Great explanation of the theory of constraints and operations management. It's a business classic- first published in 1984 - but still relevant as it gets at the fundamentals. I almost removed a star for trying to create a fictional story to tell the book in that was badly told/edited. Did we really need the side story about the protagonists marital issues?

One of the biggest takeaways from this book is that it's incredibly important to set the right goals to manage a complex operation. This Great explanation of the theory of constraints and operations management. It's a business classic- first published in 1984 - but still relevant as it gets at the fundamentals. I almost removed a star for trying to create a fictional story to tell the book in that was badly told/edited. Did we really need the side story about the protagonists marital issues?

One of the biggest takeaways from this book is that it's incredibly important to set the right goals to manage a complex operation. This sounds obvious and intuitive, however it's actually much harder than most people think, and easy to get wrong. It gets down to the question of: is everyone working on the "right things". The things that will lead to the business making the most money. It's too easy to find a things that are easily measurable and saying "this thing is correlated with our success, so let's focus on it". It sounds like "cost accounting" fit into that bucket.

“What you’re saying is that making an employee work and profiting from that work are two different things.”

So how do you set the right goals? Focus on making money!

“So this is the goal: To make money by increasing net profit, while simultaneously increasing return on investment, and simultaneously increasing cash flow.”

One of the drivers of making money in any business that creates a product is throughput, or how fast a product can be made. The others are costs/operating expenses, and inventory. One of the key concepts of the book is that focusing on throughput rather than costs will yield much better results.

“The entire bottleneck concept is not geared to decrease operating expense, it’s focused on increasing throughput.”

The bottleneck theory, or the theory of constraints, was very useful to think about. My company produces software and not physical products, but each feature we develop definitely has steps it has to go through: creating the concept, research, spec, design, implementation (backend and client), testing, QA, measure results, analyze them, iterate, etc. Focusing on where the bottlenecks are with that process can help us move faster. And every startup needs to be moving fast - and not just at building - we need to be doing build, measure, learn as fast as we can.

A consequence of the bottleneck theory that is useful to keep in mind is that in any system only the bottlenecks should be 100% utilized. Every manager will have a natural tendency to want to utilize all their resources to 100% because that just seems... wasteful if you don't. People should be working full time right? But a system can only run at the speed of the slowest bottleneck, so non-bottlenecks will by definition have spare cycles, and it's important to keep them open for the important work and not fill it up with unimportant stuff that will bog them down when you actually need them on the important stuff.

I've seen this happen many times in software. An engineer finishes a project, and the big important project coming from the design team isn't done yet, so he picks up something small in the meantime. The next day that big important project is ready to go, but the engineer only needs "one more day" to finish this thing he started. And then that day becomes two and then three (because we didn't count QA). And then we've lost 3 days on our most important project for another project that doesn't matter at all. Add that up across a large number of developers, and you've lost a lot of time.

The theory of constraints is not limited to manufacturing, as the author shows. In the end, he is advocating it as a method or process of learning.

STEP 1. Identify the system’s bottlenecks.
STEP 2. Decide how to exploit the bottlenecks.
STEP 3. Subordinate everything else to the above decision.
STEP 4. Elevate the system’s bottlenecks.
STEP 5. If, in a previous step, a bottleneck has been broken go back to step 1.
...more

4

Aug 15, 2007

The best process improvement novel I've seen, this classic work explains the all-important Theory of Constraints through real life examples and a surprisingly good story. Most books of this nature are exceptionally unrealistic, but this one manages to keep the reader engaged, which is key for an instructional text like this.

The book's lessons have some practicality in normal, everyday life, but its greatest utility is for those involved in process improvement in industries such as manufacturing, The best process improvement novel I've seen, this classic work explains the all-important Theory of Constraints through real life examples and a surprisingly good story. Most books of this nature are exceptionally unrealistic, but this one manages to keep the reader engaged, which is key for an instructional text like this.

The book's lessons have some practicality in normal, everyday life, but its greatest utility is for those involved in process improvement in industries such as manufacturing, distribution, services, and retail. All industrial and systems engineers need to read this book, as do all managers of processes. ...more

5

Jun 11, 2018

This is to Systems Thinking what The Five Dysfunctions is to management: A peachy piece of fiction, packed with applicable lessons in the most enjoyable format you can imagine. While other systems thinking books are somewhat dry, this one is filled with life, even romance, and well-grounded in reality. While five stars normally for me would mean 'life-changing,' in this case I can't resist because of a rare and wonderful balance between enjoyment, levity, and insight. This type of book, to me, This is to Systems Thinking what The Five Dysfunctions is to management: A peachy piece of fiction, packed with applicable lessons in the most enjoyable format you can imagine. While other systems thinking books are somewhat dry, this one is filled with life, even romance, and well-grounded in reality. While five stars normally for me would mean 'life-changing,' in this case I can't resist because of a rare and wonderful balance between enjoyment, levity, and insight. This type of book, to me, is way better than crime fiction or fantasy. I wish business fiction was a genre with endless options.

In The Goal, a dysfunctional manufacturing plant is transformed after the protagonist has a chance encounter with his physics professor in an airport lounge. Through an unlikely rekindling of the relationship, the professor shows him simple systems thinking principles that are gradually incorporated at the plant. These principles completely transform the site. Through continued improvement, it turns traditional accounting and productivity practices upside down and soon outperforms all other plants in its industry.

If you're bought into the whole idea of learning to think in mental models, as Dalio describes in Principles or Munger in his Almanack, you'll love this book to see how it's applied in action. If not, perhaps this story will show you the usefulness of it in an entertaining, light-hearted fashion. The book will give you some hope that a hopeless situation can be turned around with a little ingenuity. ...more

5

Mar 01, 2015

2nd read-through: I still love this book. Primarily because of its collaborative solution finding process and its vocalness against local optima. Also from a didactic perspective I think this is something we (as people leading teams) should strive for: Enabling peers to make better decisions by themselves via good process.

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The references in "The Phoenix Project" pushed me towards reading this one as well. I really enjoyed listening to the audible 2nd read-through: I still love this book. Primarily because of its collaborative solution finding process and its vocalness against local optima. Also from a didactic perspective I think this is something we (as people leading teams) should strive for: Enabling peers to make better decisions by themselves via good process.

==================================================
The references in "The Phoenix Project" pushed me towards reading this one as well. I really enjoyed listening to the audible version of this book and I would also argue that there's a lot to take from this book, even if you've already read "The Phoenix Project".

In a world where so many people are talking about scaling Agile, this is one of the books that gave me a lot more insights in the underlying principles of lean. The last chapters are especially great ammunition for folks that have to deal with By-The-Book advocates of certain methodologies. Separating the application of a principle (together with the assumptions) from the principle itself is a great way towards more insight and a more meaningful implementation of whatever methodology in the context of your environment/company.

Next stop is "Beyond the Goal"

P.S.: Started to listen to "Beyond the Goal" and realized that Jonah (from the audible version) sounds exactly like Goldratt himself. Coincidence? I think not :-) ...more

5

Oct 03, 2012

NOTES

Productivity: to accomplish something in terms of a goal

The future of our business depends upon our ability to increase productivity. -Peach

What is the Goal?
Original thoughts
Increase producitivity
Produce products
Power
Market share / Sales
Cost-effective purchasing
Supplying jobs
Quality
Quality & Efficiency
Technology / R&D
Communications
Customer satisfaction
Make Money
Three measurements essential to knowing whether company is making money
Net Profit
ROI
Cash flow
Make money by increasing net NOTES

Productivity: to accomplish something in terms of a goal

“The future of our business depends upon our ability to increase productivity”. -Peach

What is the Goal?
Original thoughts
Increase producitivity
Produce products
Power
Market share / Sales
Cost-effective purchasing
Supplying jobs
Quality
Quality & Efficiency
Technology / R&D
Communications
Customer satisfaction
Make Money
Three measurements essential to knowing whether company is making money
Net Profit
ROI
Cash flow
Make money by increasing net profit, while simultaneously increasing ROI, and simultaneously increasing cash flow
But he realizes that at the plant level these measurements don’t mean much. Only at the top level.
More than one way to express the Goal - at the plant level
Throughput - the rate at which the system generates money through sales (not production. if you produce something, but don’t sell it, it’s not throughput)
Inventory - All the money that the system has invested in purchasing things which it intends to sell
Operational expense - all the money the system spends in order to rurn inventory into throuput
Questions to ask when adding a robot
Did we sell any more products as a result?
Did we reduce number of people on payroll?
Did inventory levels go down?
Goal: Increase throughput while simultaneously reducing both inventory and operating expense.
“Money”
Throughput is the money coming in
Inventory is the money currently inside the system
Operational expense is the money we have to pay out to make throughput happen
In manufacturing: An event, or a series of events, must take place before another can begin... the subsequent event depends upon the ones prior to it. The important thing occurs when dependent events are in combination with another phenomenon called statistical fluctuations
Boy Scout hike
The leader of the troop controls the pace of the line. If a gap forms and the line is lengthened all you can do is shorten it up to the distance of the person ahead of you - dependent events!
Dependency limits the opportunities for higher fluctuations
***Whoever is moving the slowest in the troop is the one who will govern throughput
Two types of resources
Bottleneck resource - Any resource whose capacity is equal to or less than the demand placed upon it
Non-bottleneck resource - Any resource whose capacity is greater than the demand placed on it
Bottlenecks
Do not balance capacity with demand, balance the flow of product through the plant with the demand from the market.
To increase the capacity of the plant is to increase the capacity of only the bottlenecks
Two principal themes on which you need to concentrate
Make sure the bottlenecks’ time is not wasted
…
Visual management in smooth work on manufacturing floor
Using the bottlenecks to predict when the next order will be shipped
There cannot be any idle time for bottleneck processes. Dedicate people full-time to those processes.
To shorten lead time, spend the idle time while a machine is working, to set up for the next batch
Theory of Constraints
The level of utilization of a non-bottleneck is not determined by its own potential, but by some other constraint in the system
Activating a resource and utilizing a resource are not synonymous
Cutting the batch size in half - result in half wip
The time a material spends in each stage from entry to being shipped out
Setup - the time the part spends waiting for a resource, while the resource is preparing itself to work on the part
Process time - the amount of time the part spends being modified into a new, more valuable form
Queue time - the time the part spends in line for a resource while the resource is busy working on something else ahead of it
Wait time - the time the part waits, not for a resource, but for another part so they can be assembled together
Common practice can mask common sense
Capacity Constraint Resources - CCR -

Management Techniques
Process of on-going improvement
Step 1: ID the system’s bottlenecks. (After all it wasn’t too difficult to identify the oven and the NCX10 as the bottlenecks of the plant.)
Step 2: Decide how to exploit the bottlenecks. (That was fun. Realizing that those machines should not take a lunch break, etc.)
Step 3: Subordinate everything else to the above decision. (Making sure that everything marches to the tune of the constraints. The red and green tags.)
Step 4: Elevate the system’s bottlenecks. (Bringing back the old Zmegma, swithcing back to old, less “effective” routings...)
Step 5: If, in a previous step, a bottleneck has been broken go back to step 1.
CCR
IDENTIFY the system’s constraint(s)
Decide how to EXPLOIT the system’s constraint(s)
SUBORDINATE everything else to the above decision
ELEVATE the system’s constraint(s)
WARNING!!!! If in the previous steps a constraint has been broken, go back to step 1, but do not allow INERTIA to cause a system’s constraint
Root Cause
What to Change?
What to Change to?
How to Cause the Change
...more

5

Dec 03, 2008

Goldratt introduces the Theory of Constraints via this entertaining novel. I think this book is excellent if you are new to Operations. And I think the approach of telling a story rather reading a traditional text book is a good format.

It demonstrates why many traditional measurements and common intuition is wrong. The book revisits what the goal of a business should be and what is important to measure and control to achieve that goal. Through examples in the main character's personal life and Goldratt introduces the Theory of Constraints via this entertaining novel. I think this book is excellent if you are new to Operations. And I think the approach of telling a story rather reading a traditional text book is a good format.

It demonstrates why many traditional measurements and common intuition is wrong. The book revisits what the goal of a business should be and what is important to measure and control to achieve that goal. Through examples in the main character's personal life and work life, Goldratt explains the weaknesses of traditional cost accounting systems and what's important to track. In short, to optimize money earned, increase throughput, decrease operating expense and decrease inventory. And an important corollary is that any change requires impact to all 3 (throughput, operating expense and inventory). It is a fallacy that a change can impact only one of these metrics.

A good follow on book to this novel is Synchronous Manufacturing: Principles for World Class Excellence by Umble and Srikanth. ...more

4

Oct 23, 2016

(4.5) more interested in application to project development (vs repeatable manufacturing).

I like the approach of 'discovering' the principles behind theory of constraints and how to optimize throughput through a repeatable manufacturing process. Seems quite practical and valuable in just that application.

Trying to figure how this can apply beyond just manufacturing. The latter portion of the book ((view spoiler)[after Alex is promoted to division head and can't optimize a single plant, but needs (4.5) more interested in application to project development (vs repeatable manufacturing).

I like the approach of 'discovering' the principles behind theory of constraints and how to optimize throughput through a repeatable manufacturing process. Seems quite practical and valuable in just that application.

Trying to figure how this can apply beyond just manufacturing. The latter portion of the book ((view spoiler)[after Alex is promoted to division head and can't optimize a single plant, but needs to figure out how to optimize as a manager (hide spoiler)]) starts to address how to apply Theory of Constraints beyond the operations of a plant to more generalized management. I kind of got lost there.

Also interested in how Goldratt thought his theory could apply to relationships. It seems as though Alex may have inadvertently used some of what he learned from Eliyahu--er, sorry, Jonah--with his wife. ...more

2

Jan 20, 2013

I have never been so excited to finish a book in my entire life. This book is like subpar fan-fic for operations enthusiasts.

5

Jan 09, 2014

It is a Fantastic book, full of wisdom and knowledge. For all Industrial Engineers and those who are interested in management trust me and read it :)

5

May 04, 2015

This book is fantastic. Not only does it introduce the Theory of Constraints, but does it so as if ToC was invented by the main characters themselves: Revealing the reasoning behind the theory, unfolding each step in a logical progression, highlighting the pitfalls and finally crystallizing the method.

Truly genius.

2

Jun 27, 2019

Great insights. I found the writing a bit boring. The interviews in the end were the best.

5

Feb 19, 2020

Such a refreshing format. It's quite impressive considering that it was written in 80s. I enjoyed it even though I never was interested in the processes on the factories. Might try implementing the theory at my work, however, I can't imagine how that would be helpful for other industries.

5

May 02, 2019

The Goal, authored by Israeli business management guru, Eliyahu Goldratt, is perhaps the first of its kind in the business-fiction genre (if there was ever one). The novel gives the reader basic principles which can not only be used to effectively manage a manufacturing company by striving towards continuous improvement but also to effectively manage ones life.

According to the author, The Goal, is about science and education, two words that have lost the kernel of their meaning in the plethora The Goal, authored by Israeli business management guru, Eliyahu Goldratt, is perhaps the first of its kind in the business-fiction genre (if there was ever one). The novel gives the reader basic principles which can not only be used to effectively manage a manufacturing company by striving towards continuous improvement but also to effectively manage one’s life.

According to the author, The Goal, is about science and education, two words that have lost the kernel of their meaning in the plethora of complexities and jargons built up over time. Coincidentally, when I look back, I understand how two of my professors had communicated the essence of these two words in their own way.

About science, my professor from Mumbai University spoke of how our primary role as engineers is not to make complex things simple, but to make simple things simpler. The basic assumption that all things are complex, results in a downward spiral where common-sense and logic eludes us. Goldratt emphasized that for him, science is not about seeking the absolute truth, it is simply the method we try and postulate a minimum set of assumptions that can explain, through a straight-forward logical derivation, the existence of many phenomena of nature.

About education, when I had submitted my work to my professor at Northwestern University), before final submission and asked for him to review and suggest rectifications, his reply was “That is not how it works. You ask questions, I don’t check your work at every step; that removes the thinking part.” Similarly, Goldratt has effectively communicated through Jonah’s Socrates method of teaching that the only way we can learn is through our deductive process. Presenting us with final conclusions is not a way that we learn. At best it is a way that we are trained. Jonah, in spite of his knowledge of the solutions, provoked Alex to derive them by supplying the question marks instead of the exclamation marks.

Coming to the plot of the novel, the protagonist, Alex Rogo is the manager of the UniCo’s Bearington plant. A plant that operates on four ranks of priority, Hot!, Very Hot!, Red Hot!, and, Do It Now! The division overall is facing its worst loss in history and is in a deep hole which they may never get out from. According to Bill Peach, the division VP, the Bearington plant under Alex is the anchor which is pulling them down into the abyss. Bill gives an ultimatum to Alex, three months to turn the plant around and show improvement or get the plant shut down and be on the streets to find a new job. This strain ultimately creeps into his family and creates a volatile situation with his wife Julie and his children.

What follows is a brilliantly written journey of the continuous process improvements at the Bearington plant which goes onto not only survive the shutdown, but also manages to bulldoze their way onto a twenty percent profit in the following months (Hilton still shakes his head in arrogance!). The first extremely fundamental yet important step towards this was relooking and redefining what was the purpose or goal of the manufacturing organization. Such a simple step it seems when put in words, but when one begins to think, that’s a different matter altogether. Alex agonizingly explores the options such as cost-effective purchasing, high technology, producing quality products, employing people, capturing market share and so on. He realizes that these are only means to achieve the goal, which he deciphers finally is “to make money”. After this, Alex and his team gear up to work on actions that bring the company closer to its goal and thus be truly productive.

The next logical step that followed was defining a measurement to express the goal of making money perfectly well. And they expressed it as “Increase throughput while simultaneously reducing both inventory and operating expense.” Jonah reiterated often that how it was important to view these three measurements in conjunction and not on an individual level. While working in the Strategic Sourcing department of one of India’s leading manufacturing companies, I realized the value of viewing cost as not just the cost of a product in isolation, but as the cost of the total supply chain. One of the projects I had undertaken as Assistant Manager involved reducing the trans-shipment damage of granite worktops which were used in our Laboratory Furniture products. Through Fishbone and root-cause analysis, we determined that the best solution would be to re-define the supply chain and replace the hub-and-spoke model (vendor to central warehouse to customer) to direct delivery for bulk orders (vendor to customer) which constituted >80% of the business volume. Although the cost of procurement went up, we managed to reduce the damage cases from existing 5% to 0.5%, this in turn reduced the cost in delivering service replacements, working capital held up due to incompletion of site installation and resource cost of employees required at central warehouse.

The book also emphasizes how Measurements drive Behavior. An organization which has place utmost importance only on delivery will reward a 98% On-Time-In-Full performance and ignore the fact that it came at the cost of having tied-up cash due to piled-up inventory of finished goods. The crux of the solution determined by Alex and his team revolves around Working Smarter and not Working Harder. The team develops an understanding of what bottleneck resources are and of how impactful they are in running an efficient plant. The understanding of the differences between activation and utilization was a key part in ultimately reducing the batch sizes to increase throughput and reduce lead time without having to worry about the doubling of the setup times

The most interesting part of the novel was how the author masterfully interleaved the issues faced by Alex during his hikes with the kids and the issues he faced at his plant to illustrate the importance of bottlenecks. The analogy of the consumption of trail as throughput, the gaps between the kids as piling up of inventory and the excess energy spent in playing catch-up with the person in front with that of operational expense was artful. This makes me think of how innovation and problems to most of our problems are found by observing nature. I remember reading how Nikola Tesla developed the idea of alternating current for power transmission whilst having a seat in a public garden and imagining the wheels of two bicycles crossing each other as individual waves. With regards to bottlenecks, it becomes imperative to understand that it is not possible for any organization to completely rid themselves from bottlenecks, but they should instead build the way they operate their business to leverage these constraints.

One of the most important traps that organizations fall into is to limit the scope of their responsibility and work in silos. It is important to establish effective communication between various functions of an organization. As Bob experiences the eureka moment of understanding how he as being part of manufacturing can help generate sales, companies need to develop a culture where they banish the individual departmental goals and work towards a single company goal together.

One of the most underrated aspects in the books are how it was not just Alex who came up with all the solutions. It was an effective team-work from Stacey, Bob, Lou and Ralph that contributed towards constant questioning, rejection of ideas and ultimately coming up with the correct solutions,

In order to summarize the core nature of the book, I would say that to strive on a journey of continuous improvement first learn what makes your relationships, your organizations and you tick. And secondly, to adapt and revisit the first point after every stage of improvement. Like Alex and his team found that the constraints are not always the same but change over time, we must also adapt the way we manage our business. ...more

3

Jun 14, 2017

I did a bad thing and didn't realize that this was a library book that was supposed to be sent along to them six months ago...so I read it in a weekend and dropped it off on Monday.

It's a good example tale of a problematic plant and how the manager turned it around using what was then different measurements of success (which are now much more standard today). It was mentioned in one of my business classes as a good story example of changing and coming to conclusions about what's working and I did a bad thing and didn't realize that this was a library book that was supposed to be sent along to them six months ago...so I read it in a weekend and dropped it off on Monday.

It's a good example tale of a problematic plant and how the manager turned it around using what was then different measurements of success (which are now much more standard today). It was mentioned in one of my business classes as a good story example of changing and coming to conclusions about what's working and what's not in a plant environment. It's a really easy read, simple to follow, and maybe at times a little complexity would have been welcome.

I wouldn't call this book well-written by any stretch, but using it in place of a business textbook would be solid as it at least has a story of interest to follow. Though the wife subplot was pretty unnecessary and not well done in my mind.

Overall, a very basic storied example of business concepts put into action. ...more

5

Feb 12, 2020

I really liked it, from the beginning it was a great surprise how hooked i was on the story and the characters. I almosf felt like I myself, was uncovering the ideas and solutions along with the main character, discovering simple, basic, common sense rules to improve production process and better management

4

Jul 31, 2013

I wanted to love this book. I very nearly loved this book. Unfortunately, I read "The Phoenix Project" first.

I keep flipping between 3 and 4 stars for this. The book deserves 5 for its place in business history, and I flip to 4 for it because it will communicate on a general-purpose level far better than a book like "Phoenix."

But having been around people who understood about bottlenecks and the Theory of Constraints (if you don't know what those are, put down this review and go read the book) I wanted to love this book. I very nearly loved this book. Unfortunately, I read "The Phoenix Project" first.

I keep flipping between 3 and 4 stars for this. The book deserves 5 for its place in business history, and I flip to 4 for it because it will communicate on a general-purpose level far better than a book like "Phoenix."

But having been around people who understood about bottlenecks and the Theory of Constraints (if you don't know what those are, put down this review and go read the book) for some time, the book seems less revelatory to me. It's impossible to state what the impact of this would have been on mid-80's American manufacturers, let alone what its impact should be on our industry. The book essentially introduces the reader to TOC and many of the practices that were later encoded in the fabric of the lean and agile movements through a Socratic dialogue - posing a series of challenges to its characters and then asking them (and you, the reader) to extrapolate from past lessons and determine the next appropriate course of action just ahead of the characters.

If you're in IT, "Phoenix" will speak more clearly to your situation and will translate more directly to your work and world. Read "The Goal" afterwards to gain a deeper/fuller understanding of the Theory of Constraints - some of the explanations and the translation of WIP to inventory will help you visualize practices you struggle to describe daily.

If you're not in IT, just read it - it's a breezy, light book, and is written to slightly below the level of an airplane novel. There are some really gendered and racially-insensitive notes that are likely injected to reflect the book's imagined audience, a factory foreman. This dates the novel somewhat, but the struggles the characters are facing - both interpersonal and work-related - continue to hit home, and overall the book executes its core mission competently. ...more

4

Oct 08, 2009

This is THE book that will improve your business

I have lost count of the number of people to whom I have recommended this book. Whatever area of management you find yourself in, and at every level from business studies student to CEO and CFO, you are bound to pick up something useful from "The Goal."

The story follows the complex life of Alex Rogo as he works at one problem after another. With the help of his old friend, Jonah, he identifies and solves problem after problem, on the road to saving This is THE book that will improve your business

I have lost count of the number of people to whom I have recommended this book. Whatever area of management you find yourself in, and at every level from business studies student to CEO and CFO, you are bound to pick up something useful from "The Goal."

The story follows the complex life of Alex Rogo as he works at one problem after another. With the help of his old friend, Jonah, he identifies and solves problem after problem, on the road to saving his manufacturing plant, his own job and those of his colleagues, and his marriage. Each problem is broken down into its simplest components so that the real priorities are easily identified and dealt with.

Satisfying the senior management of his company and the accountants that he has turned around the fortunes of his plant proves difficult, but he supports his arguments with solid evidence.

Managers will recognise many of the problems that Alex encounters as, although part of this fiction, they belong to the real world rather than the theoretical text books that they may be used to reading. The story is far from dull and is easy to read and to understand.

What particularly appealed to me, as a practitioner of process modelling and simulation, was the way that these techniques were used to bring about significant business improvements. The power and value of such techniques was ably demonstrated and should encourage many more companies to put them into practice.

Eli Goldratt has succeeded where many have failed, to put these concepts into language that everyone can understand and therefore benefit.

The only negative comment that I have about this book is that I felt that the background story became a little bit tedious towards the end, but the value gained from reading the rest far out-weighed this minor moan. ...more

5

Jan 30, 2018

At first, I was not sure if this book is my cup of tea, and I got a bit tired of the "here's your all knowing mentor approach" every other author seems to take, maybe reading too many business novels in a row. Nevertheless, Goldratt's Theory of Constraints is one of the most important concepts to grasp if you're thinking about managing flow and throughput in goal oriented production systems. Although this story is set within a manufacturing environment, its vocabulary can be easily abstracted to At first, I was not sure if this book is my cup of tea, and I got a bit tired of the "here's your all knowing mentor approach" every other author seems to take, maybe reading too many business novels in a row. Nevertheless, Goldratt's Theory of Constraints is one of the most important concepts to grasp if you're thinking about managing flow and throughput in goal oriented production systems. Although this story is set within a manufacturing environment, its vocabulary can be easily abstracted to todays IT organisations. Rest assured: Reading this piece and looking at how Kanban is frequently implemented might give you some eye-opening moments… ...more

2

Jul 24, 2018

This one gets super reviews but I'm at best lukewarm about it. It's an early example of the "teach business principles through a novel" genre. In this case, the bumbling plant manager gets whacked over the head by his Israeli physicist friend until he figures out that flow through his plant is more important that keeping everyone busy. You'd think that the piles of inventory choking things off would have been a clue. There are things to learn here, but they could be taught in half the size, This one gets super reviews but I'm at best lukewarm about it. It's an early example of the "teach business principles through a novel" genre. In this case, the bumbling plant manager gets whacked over the head by his Israeli physicist friend until he figures out that flow through his plant is more important that keeping everyone busy. You'd think that the piles of inventory choking things off would have been a clue. There are things to learn here, but they could be taught in half the size, without the bad romantic subplot or the amazingly bad portrayal of Boy Scouts. ...more

3

Jun 23, 2014

This is a business book, telling the story of a factory manager, and eliminating bottlenecks, and ultimately helping to make money for your company. I liked the story approach of this book (as, lets be honest, so many business books are boring). No, you shouldn't read it for literature sake. Yes, it will give you some ideas on helping to achieve The Goal.

One quick side-note: the audiobook is great, since it has other voices for different characters, background sounds (for when they're walking This is a business book, telling the story of a factory manager, and eliminating bottlenecks, and ultimately helping to make money for your company. I liked the story approach of this book (as, lets be honest, so many business books are boring). No, you shouldn't read it for literature sake. Yes, it will give you some ideas on helping to achieve The Goal.

One quick side-note: the audiobook is great, since it has other voices for different characters, background sounds (for when they're walking around the plant/factory), and nice touches like that. Very well done. ...more

5

Jun 14, 2015

The book is very impressive about the way he discuss the problem and the progressive elaboration for solving the problem. The book is mainly talking about theory of constraints and how to deal with it.

4

Jan 13, 2018

The Goal sets out to convey management principles through an engaging story of Alex Rogo, a plant manager, whose factory is on the verge of being shut down and whose marriage is virtually in shambles. On the brink of failure, Alex seeks help from his former professor Jonah, who through the Socratic method makes Alex figure out what's amiss in the plant and puts him on the path to discovery.

Eliyahu M. Goldratt is lucid in his style of writing and the book reads like any other story as opposed to The Goal sets out to convey management principles through an engaging story of Alex Rogo, a plant manager, whose factory is on the verge of being shut down and whose marriage is virtually in shambles. On the brink of failure, Alex seeks help from his former professor Jonah, who through the Socratic method makes Alex figure out what's amiss in the plant and puts him on the path to discovery.

Eliyahu M. Goldratt is lucid in his style of writing and the book reads like any other story as opposed to one that is supposed to focus on management principles and come across as extremely serious in its nature.

Tip: It is best to highlight certain things in this book, so if you're not fond of marking lines with a pencil in your paperback version (like me), then please go in for an e-book format. ...more

5

Jan 05, 2019

The Goal is a must-read book. It's about a guy who, assisted by a mentor, has saved the production plant from bankruptcy. If you are not in the manufacturing business, you will still learn a lot.

Highly recommended before reading The Phoenix Project.

4

Mar 04, 2017

Literally surprised at how original the book is nearly after 30 years of publication. I feel this is the story of my factory, like the millions across the globe have felt. This is one of those revolutionary books that took the manufacturing and mangement world by storm. The book is worth in gold if you consider the costs it must have saved across the manufacturing world.
Having said that, towards the end the book just drags you. It seems the author wanted to increase the page count to make it Literally surprised at how original the book is nearly after 30 years of publication. I feel this is the story of my factory, like the millions across the globe have felt. This is one of those revolutionary books that took the manufacturing and mangement world by storm. The book is worth in gold if you consider the costs it must have saved across the manufacturing world.
Having said that, towards the end the book just drags you. It seems the author wanted to increase the page count to make it more publishable.
Eliyahu Goldratt is no doubt the world's one of the best management gurus. ...more