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The Goal

The Goal by Eliyahu M. Goldratt, is the story of a man who at his crossroads, and what direction he decides to take. The story is about a plant manager named Alex Rogo. We find Alex six months into his first plant managers position at UniCo, in the UniWare Division. The plant is located in Bearington Massachusetts, where Alex grew up. UniCo is definitely a manufacturing plant, what they manufacture, I still do not know. The story begins when Alex's supervisor, Bill Peach, comes into the plant and nearly turns everything upside down. After Alex puts out all of the fires that Bill had set, they sit down in Alex's office and talk. Bill tells Alex that production has gone down in the six months that Alex has been at the helms, and an irate customer, Bucky Burnside, has an order that is fifty-six days overdue, and Alex must get that order shipped before anything else. Bill also says that if the plant does not turn around in the next three months, he will make a recommendation to close the plant. A few days later, Alex hears more of the same at a corporate meeting and figures out why Bill was upset. After the meeting Alex reaches for something and comes across a cigar he received from a chance encounter from and old physi


Alex must determine which processes are bottlenecks. His topic is "Robotics: Solution for the 80's to America's Productivity Crisis. To make money, Alex must increase throughput while simultaneously reducing the inventory and operating expense. At first, they go through statistical data, then physically walk the plant to see workstations with work-in-progress piled up. Business is great and with the help of Alex's accountant Lou, the plant show an increase of 17%, however according to traditional accounting methods the increase is only 12. He also gives Alex three new measurements: Throughput, the rate at which the system generates money through sales. Julie decides to move back in after rekindling their relationship. Alex is successful at home just as much at work. A non-bottleneck is where capacity is greater than demand placed on it. Jonah then asks if the plant is making 36% more money because the plant is using robots? Well, of course not is the response. The three months is up, and Bill Peach still is not completely sure about whether or not this current success is not just a flash in the pan. Alex goes back to the plant and realizes he needs a lot more of Jonah's advice. The next step for Alex is too cut his batch sizes to cut his inventories down and improve overall efficiency of the plant. Alex does not understand why the line separates so greatly if all the boys are walking at two miles per hour. Throughout the course of the hike, Alex realizes that an overweight boy, Herbie, slows down the middle and the end of the line.

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