The goal

by Eli Goldratt

5*/10

Key Ideas:

To optimize a system:

  • Focus on the bottleneck: the resource which is limiting the output of the system (there’s usually 1 at a time, might be more if there is variability)
  • Increase bottleneck capacity, or take some of the load off the bottlenecks and give it to non-bottlenecks
  • This will move the “bottleneck” to another part of the system, so start again the previous process

Other interesting notes:

The Goal: Increase throughput while simultaneously reducing both inventory and operating expense.
If your whole plant earns $1,000 an hour, then an hour lost on the bottleneck is $1,000 lost.

Thoughts on the book:

*Life changing idea, but didn’t need to be a full book. It is written as a novel, which makes it somewhat entertaining and memorable, if that’s your kind of thing.

Longer summary/notes: NE

If you like this, you’ll probably like: 80/20 principle, High output management, The e-myth revisited, 4 hour work week, books