The Goal Summary

A Review and Analysis of The Goal: Looking Deeper into the Manufacturing and Business Processes Presented

At first glance, Eliyahu Goldratt’s best-selling business novel, The Goal, may seem as merely a rudimentary look and introduction to the effectiveness of constraint modeled manufacturing processes; however, a thorough analysis of the principles presented through protagonist Alex Rogo’s ongoing plant improvement, reveal otherwise. The novel essentially guides the reader through a three step process that consists of: an identification of the root problems and failures of Al’s UniCo plant at the beginning, the principles applied and measures taken to ensure the profitability and sustainability of his plant, and the steps taken to
Alex Rogo, he is a troubled plant manager filled with anxiety about the future of his plant, and as a direct result, the future of his family and relationship with wife Julie. He has worked his way up in UniCo, and has carried much of the knowledge and preconceived notions about proper manufacturing to his current position. The state of affairs in the plant is nothing short of catastrophic, with inventory costs going through the roof (almost literally) and late orders piling up at an exponential rate. Once given a mandate from his boss Bill Peach, his world is thrown upside down. Rogo’s theories on manufacturing at this point are clearly grounded in efficiencies and measurements based on arbitrary calculations, and a stubborn reliance on robots and new technology, which ironically, foster a lower overall level of productivity. Though with all of Rogo’s theories on why and how his plant is not succeeding, he cannot seem to find the right answers to his questions in order to save the plant. All of his effort is put towards figuring out the ways in which he went wrong, rather than identifying the actual goal of his plant and UniCo as a whole. The first true realization of the plant’s error in its’ focus and goal is brought to Al’s attention when Bob, the plant controller, is forced to spend all of the factory’s energy and manpower on the shipment of one late order. Goldratt uses this as an example of an error in the
The validity and applicable nature of what he presents through his theory of constraints is key in the analysis and approach to the modern manufacturing and business model. If a plant manager were to seek out a guide for valuable manufacturing principles, there would be much to find in The Goal. One of the most important facets of Goldratt’s approach is his adherence to the ever present importance of the baseline. In other words, how much product is a company producing and what does this mean in terms of profit. Measurements and cost reduction principles can be applied all day, but if money is not being made and inventory lies dormant, a manufacturing operation will slowly