The Goal By Eliyahu Goldratt
Alex Rogo
Main character, manufacturing plant manager
Julie Rogo
Alex's wife, doesn't like Barrington, leaves the family when stresses from the plant
become too much
Bob Donovan
Lou
Stacey
Ralph Nakamura
Production manager -> plant manager
Accountant -> production of devision, sales project
Inventory control -> production manager
Data processing manager
Unico
Manufacturing company
Jonah
Alex's old physics professor. Informs alex there is only one goal for all companies and
he needs to find this goal to continue the plant. Alex's consultant throughout the book.
Bill Peach
Division VP
First problem
The plant is not productive nor profitable, 3 months to turn it around or it'll be closed.
There are high inventories and large backlog.
Division's problem
It has a year to turn around or the division will be sold
Productive/ Not productive
brings you closer to the goal
all other things are not
The Goal
is to make money
How to achieve the goal
Net profit needs to increase along with simultaneously increasing return on investment
and cash flow
Measurements
express the goal of making money and permit you to develop operational rules for
running a plant.
Throughput, inventory, operational expense
Throughput
the rate at which the system generates money through sales, NOT PRODUCTION.
Money coming in.
inventory
all the money that the system has invested in purchasing things which it intends to sell.
Money currently inside the system.
operational expense
Alex Rogo
Main character, manufacturing plant manager
Julie Rogo
Alex's wife, doesn't like Barrington, leaves the family when stresses from the plant
become too much
Bob Donovan
Lou
Stacey
Ralph Nakamura
Production manager -> plant manager
Accountant -> production of devision, sales project
Inventory control -> production manager
Data processing manager
Unico
Manufacturing company
Jonah
Alex's old physics professor. Informs alex there is only one goal for all companies and
he needs to find this goal to continue the plant. Alex's consultant throughout the book.
Bill Peach
Division VP
First problem
The plant is not productive nor profitable, 3 months to turn it around or it'll be closed.
There are high inventories and large backlog.
Division's problem
It has a year to turn around or the division will be sold
Productive/ Not productive
brings you closer to the goal
all other things are not
The Goal
is to make money
How to achieve the goal
Net profit needs to increase along with simultaneously increasing return on investment
and cash flow
Measurements
express the goal of making money and permit you to develop operational rules for
running a plant.
Throughput, inventory, operational expense
Throughput
the rate at which the system generates money through sales, NOT PRODUCTION.
Money coming in.
inventory
all the money that the system has invested in purchasing things which it intends to sell.
Money currently inside the system.
operational expense
