The first ten chapters of The Goal, follow four days in the life of Alex Rogo, who runs a manufacturing plant for UniCo somewhere in a small town in the US.
Alex’s wife Julie is upset with him because he’s always focused on work and rarely at home.
Alex is focused on work because his plant is underperforming, and his boss, Bill Peach, has told him it will get shut down in 90 days if he doesn’t show improvements.
Alex reconnects with his mentor, Jonah, now an operations science professor in a flashback set 2 weeks earlier in Chicago O’hare.
Jonah has two main points for Alex:
His team must have a goal – Alex determines that the correct goal is to make money.
Jonah also tells Alex that work that doesn’t lead to the goal is a waste of time.
Alex spends a lot of time with his team talking through principles which will later be shown to be part of the Author – Eli Goldratt’s – Theory of Constraints, which the team uses to improve their performance.
The first action they take is realizing that a robot they have doesn’t actually improve performance.
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Here’s the matching video content to the written page-by-page review of Goldratt’s the Goal. Learn the Theory of Constraints and you’ll find it makes the world a little bit better every day. If you want a quicker faster summary of Goldratt’s The Goal, check out the 6o second Google Shorts summaries (link).
“Alex, I have come to the conclusion that productivity is the act of bringing a company closer to its goal. Every action that brings a company closer to its goal is productive. Every action that does not bring a company closer to its goal is not productive.” Jonah, pg 32
“You’re still accounting for it. It’s just that his way is simpler, and you don’t have to play as many games.”
Every time Goldratt writes ‘games’ – readers of The Lean Startup should see ‘vanity metrics’.
“…But if the knowledge pertains to a product which UniCo itself will build, it’s like a machine—an investment to make money which will depreciate in value as time goes on. And, again, the investment that can be sold is inventory; the depreciation is operational expense.”
“And I’m not about to stand by and let that happen just to maintain a standard that obviously has more impact on middle management politics than it does on the bottom line. I say we go ahead with this. And if efficiencies drop, let them.” Rogo to Nakamura pg 219