Analysis of The Goal by Eliyahu Goldratt :: The Goal Business Management Essays

Analysis of The Goal by Eliyahu Goldratt The Goal is a book that focuses on the theory of constraints in order to improve production. Eliyahu Goldratt brings us a pleasant story that shows the important strategies that any manager or CEO should follow to be successfully productive, and capable of reaching their goals. The book easily explains and demonstrates many attainable ways for any human being to learn how to manage their industrial relations, business processes, and also, their personal lives. Many people believe that in order to succeed in a business that is having difficulties, it is important to focus on a particular area in order to be better productive in each of them, and be able to reach the goal. Instead, Goldratt and Jonah demonstrates that is important to focus on the company as a whole, but at the same time, it shows that it is incorrectly to only focus in an specific manufacturing department, or one plant, or a department within the plant, because people should not be concerned in local optimums. The Goal is a book that has an immense support on improvement, which will undoubtedly encourage the Total Quality Management terminology when trying to built up and improve their productivity. However, the Theory of Constraints also plays a very important role in this book, because it guide us to not only focus on the improvements of the business as a whole, but also to focus intensively on the constrains, â€Å" Herbies†, or bottlenecks. In order for a company to push its improvement and create a balanced plant, it is necessary to increase the throughput, while reducing inventory an operating expense. But, what is most important is to identify the bottlenecks to be able to focus on them. After focusing and solving the constraints, everything else is going to be less powerful but important at the same time. Any company is unable to manufacture a 100%. Therefore, people should really focus on the constraints, in a way that it will prevent a failure that will damage the entire system. Bottlenecks are the key in every plant, because it will determine the activity that will create a profit and maximize the business output.