Monday, February 15, 2010

THE GOAL

The Goal written by Eliyahi Goldratt is about a Plant Manager "Alex Rogo" who struggles to save his plant which is heading towards disaster. He is given 90 days to save his plant.

Alex consults his school time buddy "Jonah" who directs him to think about the real objective of the company than the management's metric reports.

"THE REAL GOAL IS TO MAKE MONEY AND INCREASE CASH-FLOW".

He focusses on increasing throughput by reducing inventory and operational expense.

He divides the plant’s work centers into “Bottleneck” and “Non-Bottleneck” work centers which eventually boils down to Theory of Constraints.

1. IDENTIFY the system’s constraints.
2. Decide how to EXPLOIT the system constraints
3. SUBORDINATE everything else to the above decision
4. ELEVATE the system’s constraints
5. WARNING!!! If in the previous steps a constraint has been broken, go back to step 1, but do not allow INERTIA to cause a system’s constraint.

Parallely he tries to convince his wife “Julie” who leaves him due to his reduced family attention owing to his increased work commitment. Other important characters are Bill Peach,Lou,Bob and Stacey.