Book Summary "The Goal" Processes and Operations

Good Essays
Book Summary "The Goal" Processes and Operations

Key Idea
The main message of the book is that the proper way to manage any operation, whether it’s a manufacturing plant or a web design shop or a clothing store, is to: 1) Identify what needs to be changed. 2) Identify what it should be changed to. 3) Identify how to execute the change.
Summary
This story is based around the life of Alex Rogo, Plant Manager for Uniware, which is a division of Unico. After some very upsetting customer approaches Alex’s boss, Bill Peach, is given a challenge to turn the plant around in three months. Due to the limited amount of time available, there are not many outside tools available such as consultants, surveys, and so on. With very few hopes, Alex foresees the inevitable until he remembers his conversation with Jonah, a physicist who Alex knew from a previous job.
It is not until Alex’s job is in at risk that he decides to devour into his conversation with Jonah. During the conversation, Jonah asks him several questions to analyze his company’s situation. The conversation leads ultimately to the question, "What is the goal of any business?" After rethinking his conversation, Alex realizes that the goal of any business is to make money. Furthermore, if the goal is to make money any action toward this goal is considered productive and any action not moving towards the goal is nonproductive. Alex was unsure of such a simple answer and decided to contact Jonah to continue the search for more answers.
Once Alex contacts Jonah they define the following measurements to define the success of any plant’s production: 1) Throughout = rate that the system is used to generate money through sales. This measurement would consist of what a product would be worth when sold at market value after deducting operational expense and inventory. 2) Inventory = all the money invested in purchasing items that will be sold. This could include the remains of their machines after being used toward

You May Also Find These Documents Helpful

  • Powerful Essays

    Goals Of Operation HUSKY

    • 1418 Words
    • 6 Pages

    The goals of Operation HUSKY were to: “1)... secure Allied lines of communication in the Mediterranean, 2) divert as much German strength as possible from the Russian front and, 3) pressure Italy to drop out of the war. ” As Swanson further points out, “the specific military objective for the campaign would be to capture and control the island as a base for future military operations. ” While the operation was ultimately successful in achieving many of its main objectives, the nature of its design…

    • 1418 Words
    • 6 Pages
    Powerful Essays
  • Good Essays

    The Goal- Summary

    • 1385 Words
    • 6 Pages

    The book tells us the story of a plant manager, Alex Rogo, who is trying to save his plant, at least show some improvements within 90 days to keep it open. Alex 's primary problem is that his plant can not consistently get a quality product out of the plant on time at the cost that can beat the competition. His plant is losing money and if he cannot make it profitable, the management eventually will decide to close the plant. In his fight to save his plant, a physician, Jonah, helps him in achieving…

    • 1385 Words
    • 6 Pages
    Good Essays
  • Powerful Essays

    The Goal Summary

    • 1586 Words
    • 7 Pages

    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…

    • 1586 Words
    • 7 Pages
    Powerful Essays
  • Good Essays

    The Goal Summary

    • 644 Words
    • 3 Pages

    The Goal: A Process of Ongoing Improvement by Eliyahu M. Goldratt and Jeff Cox, is a management-oriented business novel. Goldratt is an Israeli physicist who became a business management guru. He is a business consultant known for his Theory of Constraints. The purpose of the novel is to teach the importance of strategic capacity planning and constraint management. The Goal tells the story of Alex Rogo, a 38-year-old executive plant manager working at a factory owned by UniCo Corporation Manufacturing…

    • 644 Words
    • 3 Pages
    Good Essays
  • Better Essays

    The Goal Summary

    • 1480 Words
    • 6 Pages

    “The Goal” is a book which explains on how to go about attaining goals in real life and business. The Goal provides a convincing tale that challenges the way we look at how we evaluate operational improvement. The author identifies a larger problem where always following the company guidelines and policies in place can limit the mind of its employees. This paper will identify and discuss the essential operational decisions, strategies and principles used in the book and lessons learnt from the key…

    • 1480 Words
    • 6 Pages
    Better Essays
  • Better Essays

    The Goal; Book Review

    • 1924 Words
    • 8 Pages

    The Goal The Goal, by Eliyahu Goldratt is a novel focused on the challenges and improvement of operational efficiency. The book is about Alex Rogo, a thirty something year old, probably has an undergraduate degree in engineering and an MBA. He is married with 2 children, working as an executive for UniCo for the past 15 years. He began his career as project engineer, now works as a plant manager of manufacturing factory in Bearington, his home town. His boss is Bill Peach, division manager at the…

    • 1924 Words
    • 8 Pages
    Better Essays
  • Better Essays

    The Goal Book Report

    • 1180 Words
    • 5 Pages

    Angelina Tambunan ACCT 508 Book Report ‘The Goal’ I. Summary The story takes place at a fictitious town called Bearington where the Uniware manufacturing plant of the UniCo Company is situated. Whatever products the plant manufactures was not mentioned in the novel. The plant is headed by the plant manager Alex Rogo who is also the lead character of the novel. The problems begin when one upset customer approaches Alex’s boss, Bill Peach about a very late order. Actually Alex’s plant has…

    • 1180 Words
    • 5 Pages
    Better Essays
  • Better Essays

    The Goal Summary

    • 3273 Words
    • 14 Pages

    efficiently. All hands in the plant are working on one order with forbidden overtime to boot. Chapter ThreeMr. Peach calls a meeting at headquarters for all plant managers and his staff. At the meeting everybody finds out how bad things are and are given goals to achieve for the next quarter. Through the grapevine Mr. Rogo finds out perhaps why Mr. Peach has been acting so erratic lately, the Division has one year to improve or it’s going to be sold, along with Mr. Peach. Chapter FourWhile at this meeting…

    • 3273 Words
    • 14 Pages
    Better Essays
  • Good Essays

    The Goal Book Report

    • 642 Words
    • 3 Pages

    All businesses have the same goal. Just like all business, the goal of a manufacturing organization is to make money. As the book begins, it is clear that the UniCo plant that Rogo runs is in dire need of improvement. None of the orders are getting out on time and the plant is on the verge of being shut down. There are 3 operation measurements Rogo can use to improve his plant. The first is to sell more products. This examines if the throughput goes up. The second is to look at if the company…

    • 642 Words
    • 3 Pages
    Good Essays
  • Better Essays

    The Goal Summary

    • 3432 Words
    • 10 Pages

    Taylor Miller OPMT 303 9:30am Class FALL 2014 The Goal A peaceful morning for Alex Rogo, a plant manager for UniCo Manufacturing, is brutally disrupted when Vice President Bill Peach makes an unexpected visit to the plant. The moment Alex walks through the doors he is confronted by frantic employees who inform him about missing customer order number 41427 and an angry Bill Peach waiting in his office. A heated confrontation between Bill Peach and Alex Rogo rises about the overdue order but…

    • 3432 Words
    • 10 Pages
    Better Essays