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Boost your life and career with the best book summaries.

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Boost your life and career with the best book summaries.

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The Goal Summary

9 min read ⌚ 

Quick Summary: In The Goal, Eliyahu Goldratt examines practically and realistically all the main concepts of industry, always seeking to find the solution of problems through the use of bottleneck theory. His educational approach is so respected that it has become a must-read in hundreds of major colleges and universities in business, administration, and engineering. 

The Goal Summary

Delays in production, declines in revenue, and other problems that companies face are gradually resolved in this management parable.

Also, the fundamental concepts of the Theory of Constraints have been popularized by this work.

In this microbook, you will learn how to overcome the bottlenecks of your company and put into practice a process of continuous improvement. Let’s go?

The Goal Summary

Eliyahu M. Goldratt was a physics student in Israel in the 1970s. There he developed a mathematical theory for industries to plan their production optimally. The theory became known as OPT (Optimized Production Technology).

After completing his studies, Goldratt devoted himself to putting his theory into practice in the marketplace in real companies, and in the 1980s he expanded this theory by formulating the so-called Restriction Theory.

The theory of constraints reveals that in order to maximize a firm’s productive capacity, it is necessary to create mechanisms that assess how production line decisions affect profits.

Not always the volume of profits of a company is directly associated with its efficiency.

Being productive means being closer to the expected result of the goal. Any action that brings the company closer to its goal is therefore productive. To measure a company’s performance, you need to use financial metrics.

The Company Goal

A for-profit company should seek present and future profitability. Unlike previous thought currents, Goldratt believes that profitability does not conflict with the company’s mission and vision.

Profitability ensures that the company can grow and become sustainable to stay in the market and that is what enables the company’s mission to be realized.

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