Great theory (TOC) trapped in a tedious story. "The Goal" by Eliyahu Goldratt

Title: The Goal: A Process of Ongoing Improvement

Author: Eliyahu M. Goldratt

Reviewer: Richard Sesek (educator, wantrepreneur)

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Topic/Intent of book: This book is a “business novel” that introduces the Theory of Constraints (TOC), a management philosophy focused on identifying and addressing the most critical limiting factor (constraint) that hinders an organization's performance. Through the story of Alex Rogo, a plant manager facing the threat of closure, Goldratt illustrates how to systematically improve operations by focusing on throughput, inventory, and operational expenses. The book emphasizes continuous improvement and challenges, what were at the time, traditional efficiency metrics.

I selected this book because: This book is required reading for a Manufacturing Engineering course where I work. I had been told many times about how “good” it is. I tried to read it multiple times and it was like a sleeping pill. Finally, I listened at 2.5-3.0 x speed for the “story” parts and powered through.

Recommendation: No. Only if you have to read if for a course or to discuss the book with others (as I did). If you must read it, power through the “relationship story” and focus on the factory. There is some good information and advice in the book, but it is layered into an irritating story about a plant manager and his separation from his wife. My biggest issue is that the wife character is so one-dimensional and childish. She leaves their kids with him while he is “trying to save plant” so she can “find herself.” I know of no woman that would abruptly leave her children as she does. It does not make the story more believable, it makes it less so. The “consultant” in the book is apparently based on Goldratt himself. I hope that the interpersonal relationship narrative was just bad writing and not based on his own kids being used as pawns.

Major lessons from this book: The primary goal of any business is to make money. To achieve this, organizations should focus on increasing throughput (the rate at which the system generates money through sales), while simultaneously reducing inventory and operational expenses (money spent to convert inventory into finished product). The Theory of Constraints (TOC) is a methodology for identifying the most critical constraint that limits an organization's performance and systematically improving it. The process involves identifying the system's constraint(s) and subordinating everything else to exploiting the system’s constraint (e.g., slowest necessary machine/bottleneck in process). After exploiting/optimizing each constraint, repeat the process to identify the new constraints on the system. A system's output is dictated by its bottlenecks. Identifying and managing these bottlenecks is essential for improving overall performance. Strategies include ensuring bottlenecks are always productive, preventing them from being idle due to upstream delays, and not overloading them with work beyond their capacity.

Organizations should embrace a culture of “continuous improvement” by consistently identifying and addressing constraints. This proactive approach leads to sustained operational efficiency and competitiveness. This book describes many lean principles and it is my understanding that this book was among the first to describe the process well.

Book Inspirations: I found this book to be preachy and dogmatic. “Business novels” are supposed to pack a potentially boring message into a palatable story. For me, this was the opposite, packing an interesting message into a tiresome, unnecessary melodrama like a bad Hallmark Channel made-for-TV movie. In this regard, it did inspire me to never cloak a good lesson in a bad story.  But, did it inspire me to think more clearly about my own processes and problems? Sure. I think the TOC framework is valuable and can help aim attention to those areas impeding a project to the greatest degree.