The Goal Case

Published: 2021-06-29 06:56:51
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Category: Business

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The Goal
-------- Reading Response
Ximiao Wang (Doris)
Summary
The Goal is really a book that full of wisdom. Goldratt is an Israeli physicist, but also created a unique theory that named TOC (Theory of Constraints) in business administration. Author puts his wisdom in a long story and leads readers think the question that how to make the factory bring the dying back to life following the protagonist of the book.
Logo, a director of a factory, faces a big problem that if he can not improve the benefits of his factory in three months, the factory will be closed. At this time, he meets his teacher Jonah, a physicist, an embodiment of author in my opinion. Jonah tells Logo that he should have a specific goal. What Logo wants? What a factory really need? I think this is the core of the book.
Logo finds the factor's goal is improve the retained profits. After that, he goes to think about the appropriate standard to measure his goals. Jonah starts teach him about the Theory of Constraints. He gives Logo three standards: throughput, inventory and operational expense.
The next question is how to turn our image becoming true. TOC execution of steps: The first step, find out the system bottleneck; the second step, decided how to excavate the bottleneck potential; the third step, other tie everything the decision; the fourth step, give bottleneck relax; Step 5, if step 4 broke original bottlenecks, then back to the first step.
Logo and his managers find out a problem and solve it. After that, there is another problem coming. The first problem is bottleneck. And another question is coming. Is the bottleneck independent without the whole system? We should focus on the whole system. Problems are continuously like that. This may be an other important view of TOC,"No Perfect". We can improve our management system continuously.
Logo successfully saves his factory. And he becomes the leader of other three factories. Unsurprisingly, he meets some problems again. And he asks for help from Jonah again. But Jonah refuses to give him suggestions. What I want to say is Goldrrat is also a great educationist. Learning is really a process that person find the answers out by self.
























Application
Simply put, TOC is a set of management concepts and management principles that about to improve and how best to implement these improvements, can help companies achieve the goals and identified which there are constraints in the whole production process -- TOC called the "binding". It also pointed out how to implement the necessary improvements to the elimination of these constraints, so as to achieve business goals more effectively. TOC stressed the importance of the enterprise as a system, starting from the overall benefits to consider and deal with the problem

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