Tuesday, June 8, 2010

The Goal - Eliyahu M. Goldratt

I began this book after a hiatus from readin for about 6 months...
First up, the title  was unusual from the usual fiction I read and so is the content!!.
As I went through the book, it became clear... it is fiction with a Goal..aptly matching the title.
The Goal here is to introduce new concepts on a topic which may seen complex on the periphery for a industry layman like me yet a read makes it simple to understand!

Is it really that simple or is it the book?
Handling manufacturing plants boils down to the basic Maths we did in class V.. Profit = SP - CP. Just imagine ;)
All trhis is done and that too is a non preachy way.
You are not spoon fed as in text books about the pros and cons of a measure, decision or technique.
Rather through the story you are put in various situations, you try and work around for solutions in your head, try to beat the author with your own concept and thus learning through this process.
You are introduced to the basics of plant management, the terms inventory, throughput, operational expense,bottlenecks,fluctuations,dependencies,sales and more and more..
Industrial myths are broken :
1. Advanced equipment = High productivity
2. Cost Cutting = Layoffs (This is a myth..wake up managers!!)

Apart from this, the main protagonist (ambitious)Alex's team really impresses you.
Stacey the smart material manager
Bob the "strong" Floor in charge
Lou the old yet sharp accountant
Ralph the computer wiz

They all are 100% commited to their work and progress towards attaining the ultimate goal of making money for their otherwise rotten plant.
They devise strategies.. analyze the flaws and work with the never say die approach to emerge triumphant even in grim circumstances!

Though for me all of this knowledge does not has a direct relevance.. yet deep down.. i guess all these terms make sense for any industry.
Since my profession deals with the software industry i can actually see some parallels right away!

  • The goal of any organization is to make money.
  • Whenever recession hits.. layoffs strike!...(reducing the operational expense)
  • IT has dependencies in the form of SDLC Models -> Planning-> Design -> Coding -> Testing-> Maintainence...Each step cant start before the first is completed.
  • Fluctuations : Planning involves the estimates for the entire project (man hours for each activity).Yet System fault, human error, bugs in code may lead to unexpected delays thus leading to fluctuations
  • Identifying the bottleneck areas. Where the team is less competent(What causes delays??)
  • Resolve bottlenecks as they determine the throughput and hence the profits.Trainings, experienced people , reviews may help to uplift the performances.
  • Manage working hours : Overtime is generally a sign of bad health of the company.
May be there is something in the book that all can take back and apply in their little ways in their professional life.Also always remember the soul of the book..
"Lead a balanced,successful life"
To be successful, don't forget to live a life!!! Go rock it! :) :)

2 comments:

  1. Nice review. Necessary but Not Sufficient by the same author deals with software/IT indstry.
    Regards
    Srinivasamurthy
    ksm@pqp.in
    www.pqp.in

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  2. I think you are late in posting this, as because this has been apt 1 year ago, when whole world was suffering in the heat. But better late than never. So, nice suggestions and a nice try to give your thoughts on the situation.

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