Nicole Forsgen, CEO and Chief Scientist at DevOps Research and Assessment (DORA) "Prior to reading The Goal, I worked for three governors and ran large organizations, budgets, and enterprises across almost every area of government. I'll be adding this to my recommendations list!" - Dr. The original is a must-read, and now the graphic novel is another path to understanding the Theory of Constraints. This book should be required reading for CIOs, CTOs and technologists the world over." - Kevin Behr, Chief Science Officer at PraxisFlow and co-author of The Phoenix Project "The Goal has never been more relevantfor organizations that rely on technology. If you only read one business book, it should be this one." - Verne Harnish, Founder Entrepreneurs' Organization (EO) and author of Scaling Up (Rockefeller Habits 2.0) "A compelling adaptation of Eli's seminal work. "The Goal is the #1 business book of all time and the graphic adaptation makes this timeless classic and its powerful ideas even more accessible. Named to Time magazine's list of the 25 Most Influential Business Management Books, it is frequently cited by executives as a favorite or must-read title. A bestseller since it was first published in 1984, the business novel has sold over 7 million copies, been translated into 32 languages and is taught in colleges, universities, and business schools around the world. The Goal is widely considered to be one of the most influential business books of all time. Visual and fun to read, The Goal: A Business Graphic Novel offers an accessible introduction to the Theory of Constraints concepts presented in The Goal, the business novel on which it was based. As Alex identifies the plant's problems and works with his team to find solutions, the reader gains an understanding of the fundamental concepts behind the Theory of Constraints. It takes a chance meeting with Jonah, a former professor, to help him break out of his conventional thinking and figure out what needs to be done. If he doesn't improve the plant's performance, corporate headquarters will close it down and hundreds of workers will lose their jobs.
#The goal eliyahu goldratt summary chapter 2 how to#
Decide how to exploit the system’s constraint.Throughput is the most important, then inventory, due to its impact on throughput and only then, at the tail, comes operating expense.Information is the answer to the question asked. Bottlenecks govern both throughput and inventory.
Take some of the load off the bottlenecks and give it to non-bottlenecks.Make sure the bottleneck’s time is not wasted.But if you scrap the part after it’s past the bottleneck, you have lost time that cannot be recovered. If you scrap a part before it reaches the bottleneck, all you have lost a scrapped part.Make the flow through the bottleneck equal to demand from the market.What do you need to do instead is balance the flow of products through the plant with demand from the market. You should not balance capacity with demand.A bottleneck is any resource whose capacity is equal to or less than the demand placed upon it.The ones at the end of the line should have more than the ones at the beginning, sometimes a lot more. Some resources have to have more capacity than others. It’s an accumulation of slowness because dependencies limit opportunities for faster fluctuations. Operational expense is all the money the system spends in order to turn inventory into throughput.Inventory is all the money that the system has invested in purchasing things that it intends to sell.Throughput is the rate at which the system generates money through sales.Stated differently, the goal is to increase throughput while simultaneously reducing both inventory and operational expenses.Every action that does not bring a company closer to its goal is not productive. Every action that brings a company closer to its goal is productive. Productivity is the act of bringing a company closer to its goal.But I pick and choose ideas to include at my discretion. The following book summary is a collection of my notes and highlights taken straight from the book.
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