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How often is a plant manager asked to "improve efficiency" by keeping the assembly line flowing, reducing employee downtime, and increasing inventory stockpiles? Far too often, according to Goldratt, who convincingly proves that 'bottleneck' activities are the ultimate constraint in a manufacturing system. Likening bottlenecks to the slowest member of a hiking group, he contends a manufacturing line can only move as fast as its slowest activity - a bottleneck activity. Poor production planning can result in an inventory pileup in front of a bottleneck activity. Activities circumventing the bottleneck cause inventory problems in assembly and are similarly constrained by market demand. The solution is to pull inventory through the bottleneck activities according to this demand, while utilizing non-bottleneck activities as necessary. Idle time at non-bottlenecks is perfectly acceptable.
Goldratt also examines the critical flaw of cost accounting systems - reducing total product costs do not simply correlate to higher profits. In many manufacturing organizations, performance measures are based upon efficiencies and variances, rather than bottom-line impact. Therefore, the goal of management (make more money) is misaligned with that of the front-line worker (increase efficiency).
They are simple, yet often forgotten lessons. What is the GOAL of a business? It is simply to make more money, and any action you take towards that goal is a good decision. Any action taking you away from that goal is a poor decision. Goldratt makes the distinction clear both in a personal and professional context. He concludes his discussion by asking the reader to consider how such action can successfully be implemented across an organization. Without providing a definitive answer, he implores the reader to examine the lessons learned throughout his writing - seek and ye shall find.
One word of warning can be drawn from the narrative - many managers will be tempted to duplicate the examples without regard for the process leading to those conclusions. Many will consider their own organization a "special case" to which these lessons do not apply. Such criticism is clearly unfounded; the true lesson of The Goal is that change is implemented through a process of ongoing improvement specific to each organization. The framework outlined through the narrative is broad, providing the fundamentals necessary to drill down into the core problems plaguing manufacturing profitability.
For successfully authoring an entertaining and informative composition, based upon the Socratic method, Goldratt deserves high praise.
Back in Chemical Engineering school, we often talked about "rate-determining steps" of a chemical reaction. It's a similar idea in maximizing production rates. In that case it had to do with understanding the sequential steps of a chemical reaction to determine which step was so much slower than the other steps that it determined the overall rate. Once you understand what step controls the reaction rate, you are then able to do something to increase the reaction rate with the end result of higher throughput, smaller equipment, lowered cost, etc. I found after really learning that datum in school, I looked at non-chemical processes in a similar way with the net effect of boosting rates in many endeavors. You could even apply this to your own life, much like the novel shows the effects of constraints on a camping trip. It can open a door to improvement and even optimization.
Similar to the "rate-determining step" idea, this book should help you see manufacturing processes in a different way by identifying the real constraints that determine the overall rate of production. Once you know what the constraints are, you are then able to act.
It's useful, applicable knowledge at a next-to-nothing cost.
As for skipping this book and jumping right into six-sigma, in my opinion that is BAD advice. They are not the same thing. They share the same goal: improvement. So both have merit.
One final note: the book is a quick read.
Not in a manufacturing business? This book is set in a manufacturing plant, but the concepts apply broadly. I currently work in a service business, with no tangible products whatsoever, and the keys of this book are as useful here as anywhere.
This book is engaging and easy to read, but it's not written to the lowest common denominator. It's for people who want to improve the way their business is run, no matter what level they are - though obviously, the higher you are, the bigger impact you can have.
I read this book for the first time in college, and have reread it every two or three years since. It belongs in the company of such business and self-help classics as Seven Habits, See You at the Top, One Minute Manager, and Win Friends/Influence People. Perhaps the highest recommendation I can give this book is that I have bought it and given it as a gift, out of my own pocket, to about half a dozen different people in the company I have worked for over the last six years - all VPs, SVPs, and EVPs. I figure, if they apply the principles, it's ultimately going to make the company (and me) more successful. All of them have commented positively on the book, and some have in turn passed it along.
Whether you are just starting out in business, or have already attained a high level and want to broaden (and brighten) your horizons, this is a must-read that will positively impact your business, and your life.
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A year or so later, I met Harry Lorayne during a show (he was a mental expert and I was a musician). I was absolutely astounded at what he did and decided that however he did it, I would do the same thing. I told Harry that, and he laughed and said, "Just buy any of my books--they all say the same thing."
I promptly bought ALL of his available books, found that he was correct, and returned all but one, "How to Develop a Super-power Memory." Yes, the method Harry teaches may seem to be a "kiddy way" or simplistic, but it REALLY works. My grades were "A"s thereafter. I remembered whatever I wanted, whenever I wanted, regardless of the detail.
If Harry Lorayne's methods don't work for you, it is ONLY because you did not apply them. Period. Do not for a moment think that "miraculous" results cannot spring from "simple" methods.
I also recommend anything Dr. Kenneth Higbee has written.
Get Lorayne's and Higbee's books; do what they say; you WILL be successful.
Peace.
I also reccomend The Memory Book by Harry Lorayne and Jerry Lucas. Its kind of like a big brother to this book and covers a llittle more info but does not focus specifically on school.
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