The Goal Paper

1241 Words Mar 8th, 2016 5 Pages
The Goal Paper The Goal, by Eliyahu M. Goldratt, is a book that offers lots of effective business practices and methods to manage manufacturing production that is truly engaging to read about. Goldratt’s teachings about the “Theory of Constraints,” or TOC, impart in a reader the important strategies that any plant manager or company CEO could implement into their business to operate a more successful and productive business. The easy explanations of how to properly apply Goldratt’s teachings into the business operation of a manufacturing plant has allowed for The Goal to become so successful as a business novel, and I hope to apply the business strategies and skills I learned from this novel when I enter my professional career. The Goal …show more content…
Personally, one of my favorite parts of the book is the conversation interaction Alex has with Jonah about how Alex can improve the manufacturing processes of his plant. During one of their conversations, Jonah asked Alex several questions to analyze his company's situation, which at the time seemed in good condition. The conversation ultimately leads 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 unsure of such a simple answer decides to contact Jonah to continue the search for more answers. This is when Jonah gives him the most powerful combination of definitions. The first measurement that would define the success of the plant's production was throughput, which is the rate at which the system generates 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. Inventory is the next important definition. This is all the money that the system has invested in purchasing things that it intends to sell. Finally, the last measurement is operational expense, which is all the money the system spends in

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