The Goal: A Process of Ongoing Improvement by Eliyahu M. Goldratt and Jeff Cox
The Goal: A Process of Ongoing Improvement by Eliyahu M. Goldratt and Jeff Cox

Business · 1984

The Goal: A Process of Ongoing Improvement review

by Eliyahu M. Goldratt and Jeff Cox

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The verdict

The Goal is a business novel — written as fiction to make operational management ideas accessible — that introduced the Theory of Constraints to a broad audience.

Best for operators, founders, and managers. Reading time: 6h 40m.

The Goal: A Process of Ongoing Improvement by Eliyahu M. Goldratt and Jeff Cox
The Goal: A Process of Ongoing Improvement by Eliyahu M. Goldratt and Jeff Cox

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What it argues

The Goal is a business novel — written as fiction to make operational management ideas accessible — that introduced the Theory of Constraints to a broad audience. Goldratt was a physicist turned management consultant, and he used the novel form to embed a rigorous set of ideas about how to manage production systems in a story that is genuinely readable. The protagonist, Alex Rogo, has ninety days to turn around a manufacturing plant or it will be shut down. His encounters with his old physics professor, Jonah, drive the intellectual arc of the book.

The central insight is disarmingly simple: every system has at least one constraint — a bottleneck — that limits the system's throughput. The manager's job is to identify the constraint, maximize its throughput, and then address the next constraint. Improvements to non-constraint parts of the system that don't increase the throughput of the constraint are largely wasted. This reframes the goal of operations from local efficiency (making every machine and worker as productive as possible) to global throughput (producing more of what the system is designed to produce).

What it gets right

  1. 1.

    Every system has at least one constraint. The throughput of the system is limited by the constraint, and improving non-constraints without improving the constraint does not improve the system.

  2. 2.

    The five focusing steps of Theory of Constraints: identify the constraint, decide how to exploit it, subordinate everything else to the constraint, elevate the constraint, then find the next constraint.

  3. 3.

    Activating a resource (using it) is not the same as utilizing it (directing it toward the system's goal). Idle time at a non-constraint is not waste if it prevents buildup in front of the constraint.

What it covers

Who wrote it

Eliyahu M. Goldratt was an Israeli physicist and business management guru who developed the Theory of Constraints. He founded the Avraham Y. Goldratt Institute and wrote more than a dozen books applying the theory to manufacturing, project management, and marketing, including It's Not Luck and Critical Chain. Jeff Cox is a business writer who co-authored The Goal with Goldratt to make the ideas accessible to a wide audience through the novel format. Goldratt died in 2011. The Goal, published in 1984, has sold more than seven million copies and has been required reading in many MBA programs and manufacturing management courses.

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