The Goal

In: Business and Management

Submitted By asa1992
Words 1266
Pages 6
The Goal Essay
17 September 2011
Management Concepts in “The Goal”
In the book “The Goal” there are very many examples that go along with basic management principles. One concept that is highlighted in the beginning of the book is crashing. Alex Rogo, one of UniCo’s plant managers, has to use additional funds to pay for overtime for employees. He also has to relax many of the plant work specifications by leaving many machines idle while everyone in the plant focuses on getting one order out the door. Another concept that is discussed is the difference between productivity and efficiency, the author Eliyahu Goldratt compares productivity and efficiency through the issue with the robots. Even though the robots are increasing the efficiency of the production of parts they are not increasing the productivity. Another very critical management concept is time estimations. An example of this is when Rogo goes on a hike with his son and some friends. When Rogo first determines the time estimates for how long the hike will take he has very deterministic time estimates, when really they should have been more probabilistic. In many ways “The Goal” highlights key terms of management but some of the main terms highlighted are productivity, crashing, and time estimations. In the first few pages Alex Rogo must apply crashing to his plant when a certain order 41427 is realized to be 7 weeks late. Even though order 41427 was already very late the plant was ordered to get it shipped out that very day. Rogo incurred extra expenses for the project by being forced to pay employees overtime. Another element of crashing is when work specifications are relaxed. In the whole plant not one employee was working on something that did not have to do with order 41427. If the plant would not have applied these crashing techniques to the problem the order would have never been shipped out…...

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