Review of “The Goal” by Eliyahu Goldratt Essay Example

has just three months to prove himself as the Plant Manager and earn the trust of division Vice-President Bill Peach. To make matters worse, Alex faces professional tensions with his team members who are engaging in blame games under the pressure from top management to meet shipping deadlines for the finished product.

Essentially, Alex is in charge of an inefficient plant, not due to the ineffectiveness of the staff but because of an inadequate system that he realizes later on. During a difficult time in his personal and professional life, Alex unexpectedly encounters his former professor, Jonah, at an airport. Jonah introduces him to a new way of thinking about limitations and variability. He enlightens Alex by pointing out that he is leading a facility with an undesirable system and not poor-performing personnel. Jonah arrives at this conclusion by posing a few straightforward questions about Alex's work life. He explains that productivity involves accomplishing objectives, and every establishment should have a goal. Any progress made towards achieving that objective results in enhanced efficiency.

Jonah advises Alex that the primary objective of any organization or business is to generate revenue, and all actions taken should be profit-driven. Additionally, Jonah emphasizes the significance of constraints and variability. He highlights that it is impracticable to achieve equilibrium within a system and should not be attempted for enhanced success. Variability results in inefficient resource utilization within an organization. Jonah advises Alex to investigate the underlying cause of any problem before making judgments. Goldratt provides a simple example to illustrate the importance of a leader setting goals and understanding their team's strengths and weaknesses based on Alex's personal experience.

Accompanied by

his son, Alex faces difficulties with the leader of his camping group and learns about the value of setting goals and having a credible leader during the trip. Jonah gives him advice on gathering adequate data, particularly the right data for improved efficiency. He instructs Alex to identify bottlenecks, which are easily recognizable in the production line and impede the company's growth. Jonah emphasizes that bottlenecks cannot be eliminated, only controlled, and that putting non-bottlenecks to full use is foolish and can lead to the company's downfall. He also highlights that bottlenecks always exist, pulling the plant from achieving greater efficiencies.

Jonah's advice to Alex is to prioritize increasing throughput of the constraints in order to reduce operational costs, even if it incurs additional expenses. The constraints are the limiting factor for the entire plant's throughput. Additionally, Jonah emphasizes the significance of inventory in determining a company's success. Higher inventory levels result in greater costs and complications. Jonah also highlights the crucial role of product quality in minimizing rework and enhancing the product's lifespan.

Goldratt discusses the significance of cash flow, return on investment, and net profits in the growth of an organization. He effectively portrays the realities of a manufacturing engineer's professional and personal life, emphasizing their equal importance by drawing connections between an individual's personal life and their professional performance through Alex's family experiences. In a surprising turn of events, Alex presents a remarkable summary of his plant's improved efficiency and productivity to the panel using various managerial concepts with Jonah's guidance, ultimately transforming the division from a loss-making to a profit-making one. Overall, "The Goal" offers a simple yet thought-provoking read that illustrates

fundamental principles through relatable situations and practical solutions to achieve success in reaching set goals.

The attainment of improved productivity and efficiency by any organization relies on a proper goal-setting process, utilization of appropriate techniques, and recognition of the interdependency of various factors.