In the elevator Alex’s co-worker Nathan Selwin explains why Peach has been behaving so strange lately. Chapter 7 Alex’s daughter greets him at the late hour to show her excellent grades at school. The very agitated Bill complains about the plant’s current situation and informs Alex that he has 3 months to turn the tables in the plant’s favor, otherwise the plant will be shut down. Chapter 20The team gets back together in the plant the preceding day to discuss the actions to be taken upon the bottlenecks they had earlier recognized. He also helps him with the weight he was carrying. They plunge into the basic nature of each element of the plant and categorize them according to the three figures suggested by Jonah. He pushes all the employees to work extra hours and somehow, order #41427 finally gets shipped late that night. Lou walks in with the new sales figure, and a whopping seventeen percent growth has been observed according to his new model of accounting. The book: The Goal, attempts to teach valuable lessons about industry while keeping the reader entertained with an interesting side story. We hope you enjoy this website. His troubles extend to his family as his wife, Julie, is unable to adjust to the monotonous life in the new town. This will increase cycle times and hence the sales team can promise to fulfill new orders after four weeks, twice as long as before. As expected the fluctuations of the troop balanced out and the camp was set up at the expected time and site. Their conversation is interrupted so that Jonah can catch his flight. Alex analyzes the situation with a physicist’s perspective. Alex meets Johnny Johns, the division sales manager, and tells him to outline a new marketing strategy for his plant’s increase in capacity. He meets with Lou, who excitedly tells him that the plant will have twenty percent greater profitability in the next two months. He invites suggestions from the team for additional improvements. Initially, Alex’s thinking is distorted by conventional management accounting metrics. The team is beginning to trust their boss and appears ready to act on his command. These cookies do not store any personal information. Later that night, while at dinner with a colleague, he reflects upon the mismatch between the company’s accounts and actual profits. Jonah affirms the changes to be plausible in the given time period. 5.0 out of 5 stars Great book but needs a refresh. They relate this to their division and a decision is made. ▶ As the story proceeds, a person can connect with the character to realize ‘constraints’ of his own management system. Hence those parts were produced on lowest priority, leading to shortages at final assembly. three books that Jeff Bezo requires his top management team to read, Key Takeaways for Managers: How to Drive Continuous Improvement, must NOT try to balance capacity with demand, back story about events leading up to the writing of The Goal. 'The Goal' is an exceptional work of an Israeli physicist, Eliyahu Moshe Goldratt (March 31, 1947 - June 11, 2011) who turned a management guru later. In “The Goal: A Process of Ongoing Improvement”, Eliyahu Goldratt uses a story to explain several inter-related management concepts which are especially useful for operations management and strategic planning. The solution was to rework the tagging system to create a balance between the two parts. Alex works around them and employs dedicated foremen to help keep up the time lag during the bottlenecks were in process. But the deal could open up new opportunities in Europe, which has a lot of other potential large customers. Jonah has called to inform that he will not be available for advice over the next few weeks. Chapter 26Alex’s kids offer to help their dad with his issues if he would allow, and while in discussion with them, he actually feels relieved. He discusses the downtime of both the bottleneck and the entire plant with Lou. While this production plan is being set into motion, Alex discovers that his wife Julie had been staying with her parents. Now what…? Towards the end, he realizes that ‘bottlenecks’ or constraints would change with time, and their solutions would also change with it.