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Business literature

The Goal

eng. The Goal · 1984
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Implementation Notes

  • Defining the organization's goal: The main goal of any commercial organization is to make money. All actions and decisions should be directed towards achieving this goal.
  • Focus on bottlenecks: There are always bottlenecks in the production process that limit overall productivity. It is necessary to identify and eliminate these bottlenecks to improve efficiency.
  • Continuous improvement process: It is important to continuously improve processes, even if current results seem satisfactory. This requires regular analysis and seeking opportunities for optimization.
  • Using the Theory of Constraints: The Theory of Constraints (TOC) helps identify key constraints in the system and focus efforts on eliminating them. This can significantly improve productivity.
  • The "Five Focusing Steps" principle: 1) Identify the system's constraint. 2) Decide how to exploit the constraint. 3) Subordinate all other processes to the decision on exploiting the constraint. 4) Elevate the constraint's capacity. 5) If the constraint is eliminated, return to the first step.
  • Avoiding local optimizations: Do not strive to improve individual parts of the process if it does not enhance the overall system performance. It is important to view the system as a whole.
  • Inventory management: Excess inventory creates additional costs and does not contribute to achieving the goal. It is necessary to optimize inventory management to minimize it while maintaining production stability.
  • Accounting for downtime: It is important to account for equipment and personnel downtime, as this directly affects productivity. Downtime should be minimized, especially at bottlenecks.
  • Process synchronization: All processes in the organization should be synchronized to avoid delays and downtime. This is especially important for bottlenecks that determine overall productivity.
  • Teamwork and involvement: Successful implementation of changes requires the involvement of all employees. Teamwork and a common goal help achieve results faster and more effectively.
The Goal
Date of publication: 15 October 2024
Last updated: 21 October 2024
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The Goal
Original titleeng. The Goal · 1984