Operations
This principle focuses on optimizing the limiting factor in a production system rather than individual resource efficiency.
Theory of Constraints (TOC)
This alternative accounting method prioritizes throughput, inventory, and operational expense to align with overall profitability.
Throughput accounting
Rather than focusing on increasing the number of sales, The Goal emphasizes this key factor for customer satisfaction.
Ensuring reliable and on-time order fulfillment
This principle challenges leaders to move beyond short-term solutions and instead focus on optimizing the bottleneck to improve the overall performance of the system.
Leadership through the Theory of Constraints
information systems should be designed to track and align performance across departments, rather than optimizing individual departments in isolation. What is the goal of this approach?
Optimizing the entire system
In The Goal, this system replaces the traditional "push" approach, where production is driven by actual customer demand, reducing inventory and waste.
Pull system
The Goal shows that maximizing resource utilization doesn’t always improve performance, sometimes managers ignore the issues or push them harder - assuming they will go faster. What does it recommend instead?
Optimizing the flow of work and managing the bottleneck.
This traditional accounting method focuses on efficiencies and cost reductions but often leads to overproduction and higher inventory.
Standard Cost Accounting
Reducing batch sizes and improving response times can help meet new targets and reduce inventory. To align with these changes, Alex asks this person to create a marketing strategy that reflects the plant's new operational approach.
Johnny Johns, the division sales manager
The Goal critiques this management style focused on top-down control. What is it called?
Command-and-control leadership
Alex Rogo learns that information systems should provide this type of feedback to improve system performance.
Real-time feedback on the status of bottlenecks and the availability of critical resources.
How many pages are there in the 30th Anniversary Edition paperback book of The Goal?
362
This inventory system, recommended in The Goal, focuses on producing only what is needed at the moment to minimize waste.
Just-in-Time (JIT) Inventory
This financial metric measures the rate at which the system generates money through sales, emphasizing system-wide performance.
Throughput
This system, advocated by The Goal, prioritizes production based on the bottleneck's capacity, ensuring that orders are fulfilled without overloading the system.
Priority-based order fulfillment
Alex Rogo learns that this leadership approach, which fosters collaboration and questioning assumptions, is key to organizational success.
Participative leadership
What 3 key performance indicators (KPIs) does The Goal emphasize for clearer decision-making?
Throughput, inventory, and operating expenses
This strategy emphasizes working closely with suppliers to synchronize material flow with production needs, reducing lead times and enhancing the efficiency of the bottleneck.
Collaborative Vendor Relationships