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The Goal: A Process Of Ongoing Improvement

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Everyone this is either taking business or considering to take business should read this book. It gives significant insight into the day and life of an operations manager and more importantly it challenges common well known business practices and as well as thought processes. Accountants, production managers, and even CEO can benefit from reading this book because it gives you a perspective of what to do when conducting a business and how to make things work in your favor. I also believe that because of its vital fundamentals, it should be part of the curriculum, lesson plan of every business program. Also I believe it should be a job requirement based off what position your applying for or getting promoted to. This novel has the potential …show more content…

Orders are repetitively late, in which Bill Peach takes charge of the situation and gives, the plants manager, Alex, the news has three months to turn his plant around from being unprofitable and unreliable to being well efficient and successful. Luckily Alex reunites with his old college professor named Jonah, who provides and strikes an psychological match that will help Alex's by getting him to think about the overall goal of the company. Jonah shows Alex that thinking the way that he does is wrong because he has gotten used to accepting so many things without question. According to Jonah, in order to be productive he has to achieve something in terms of the goal of the organization. After some deep thinking, Alex then determines that the goal is to gain money. Everything he does is absolutely pointless unless the company is making money, which is why it is urgent that he flips this situation around. The main concern was that the company was obsessed with measurements such as cost-effective purchasing, high technology, producing quality products and other forms of within the organization. These measures however are not the main objective goal but the building blocks to achieve the …show more content…

Everyone on this team has certain knowledge that can help fix what is wrong in order to save the plant. Team consists of Alex, the production manager, inventory manager, head accountant and marketing manager. With each member’s expertise, they are able to determine and give Alex a vivid picture of what is going on in the plant. After taking advise from Jonah, Alex and his team has created a five-step process for solving throughput problems. The five-step process consists of: 1. IDENTIFY the system's constraint(s). 2. Decide how to EXPLOIT the system's constraint(s). 3. SUBORDINATE everything else to the above decision. 4. ELEVATE the system's constraint(s). 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. Alex and his team also establishes what technique is ideal for effective management. They conclude that the Socratic scientific method of analyzing what the problem is, is actually the best and most effective in the way on should manage. Alex determines that the purpose of the organization needs all the efforts of everyone that contributes to the organization rather than one person and the operation of the organization is greatly reliant upon the performance of individuals. The process of effective management is basically: what to change, what to change to, and how to cause

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