“The Goal” by Eliyahu is one of the most renowned books of management. The book gives a practical example through narrating about Alex, whose job was at jeopardy due to failing company results. He decides to consult Jonah, who helps him in analyzing the company through several questions such as the goal of the company. Several issues raise interest, which every organization would find use. The book focuses on the theory of constraints that is considered quite important in management. The book makes three points about the theory of constraints that are of interest to me. The first point of aspect is what s to be changed, what to change to, and how to make the change come true. The book gives an account of how to eliminate the constraints (Eliyahu 47).
Another point of interest is about the goal of a company. The goal of any company is making money. Thus, any operation that is designed to making more money is a step towards achieving the company goals, while any operation that is not designed to make money does not help the company in realizing its goals. This is no exemption to other companies despite engaging in other activities such as sponsorship of activities. The main goal of any business organization is making money.
The third point of interest is the points addressed in the book that can be used for achieving the goal of making money. The book suggests three elements, which are throughput, operational expense as well as the inventory. The throughput is the rate at which the company generates money through sales. Inventory on the other hand is the amount of money of resources used purchasing of items to be sold to consumers. Finally, the operational expense consists of the money used to turn the inventory into sales of throughput (Eliyahu 56).
The three points would be of great help to me as a sales manager in a quick restaurant. The three points would help in achieving the main goal of the restaurant, which is making money just as any other business. With the first point, in every business, there are constraints. This would be the first thing to analyze. With the sales team, I would analyze all the constraints of driving sales to the customer. Here, I would be seeking to find out what change would be necessary, and how such change should occur as well as where.
After identifying the sales constraints, the next thing would be seeking to eliminate them to achieve the goal. The goal of the restaurant is making money or as much profits as possible. I would ensure every sales person is aware of this goal, and the means of achieving the goal. The means are found in the three elements of throughput, inventory, and operational expenses. With the throughput, I would be considering the product that would remain worth if sold at the market value after subtracting inventory and operational expenses. The inventory should be maintained at minimum, while sales are maximizing as opposed to having too much inventory when sales are going down. This ensures to save costs of holding inventory by producing only what is demanded by customers. Finally, the costs of operation would have to be reduced, to include only those that add value o products. Those that are not associated directly with the products or selling to the customers would be eliminated to ensure costs are maintained at minimum while quality is maximized.
Eliyahu M. Goldratt. The Goal: A Process of Ongoing Improvement. New York, N.Y: North River Press, 2004