![the goal eliyahu goldratt summary chapter 2 the goal eliyahu goldratt summary chapter 2](https://www.coursehero.com/thumb/c0/a4/c0a49fda60421cd0e9f363c8e9616dd017d2c42f_180.jpg)
I think if you can explain a situation as well or even better than someone involved, it draws them in. I get the same response from my 9 Challenges ebook where I apply the concepts in the The Goal to custom job shops and machine shop scheduling. Eli received many letters and emails stating something similar. So why is The Goal so popular? I think because it seems that Eli spent time in your plant documenting what was happening. You can find more information on flow and flow based scheduling <– here.
#THE GOAL ELIYAHU GOLDRATT SUMMARY CHAPTER 2 HOW TO#
You can find a full, how to description of Throughput Accounting <– here.
![the goal eliyahu goldratt summary chapter 2 the goal eliyahu goldratt summary chapter 2](https://cdn.slidesharecdn.com/ss_thumbnails/goal-100917093931-phpapp01-thumbnail-4.jpg)
Here’s some stats compiled by on bestselling business books. The publisher, North River Press, has indicated on the 30 th anniversary edition (2014) that over 6 million copies have been sold. There, of course, is no hard evidence of this. With The Goal, for each one purchased it was passed to 4 different people to read. Eli also explained another phenomenon that occurs – he said that most business books are purchased but only 1 in 4 are actually read. And pirated copies have been found in other languages around the world. I say probably because it’s difficult to track worldwide sales. The Goal is probably the most read business book of all time - in the world. This turned out to be a great thing for Eliyahu Goldratt and a big missed opportunity for Jeff Cox. He also explained that his co-author wanted to get paid a flat guaranteed fee for his work. In the account I heard, he said it took talking to over 30 publishers before finding one that would take the risk. Eliyahu Goldratt or Eli would tell a story about publishers passing on his book because it was a business book and a “love story”, and they did not know what shelf to put it on. If you want to find out more, you'll have to read the book yourself.The path to publishing The Goal book was difficult.
![the goal eliyahu goldratt summary chapter 2 the goal eliyahu goldratt summary chapter 2](https://d20ohkaloyme4g.cloudfront.net/img/document_thumbnails/d965ff6096d8a9cb396e8a1d55b674f7/thumb_1200_1553.png)
If the capacity of your bottleneck is greater than market demand, then market demand becomes your bottleneck and you should find ways to increase it (e.g. make it more efficient or get more resource). If the market demand is greater than the capacity of your bottleneck, you need to try and find ways to increase the capacity of the bottleneck (e.g. A slower flow will result in a slower throughput of sales, a faster flow will result in more inventory. Once identified, the flow through a bottleneck should be controlled and made equal to the demand from the market. Start by identifying the Bottlenecks (resources whose capacity is equal to or less than the demand placed on them) and non-bottlenecks (resources whose capacity is greater than the demand placed on it). The key to reducing inventory and increasing throughput of sales is not to look at each local area and optimize but instead to look at the entire system. Operational expense is the money that is spent in order to turn inventory into sales (i.e.Inventory is the money that has been invested in purchasing things which are intended to be sold (i.e.Throughput of sales is the rate at which money is generated through sales (i.e.In a nutshell, it states that the goal of a business is to make money and that, in order to achieve this goal, you need to increase throughput of sales, reduce operational expense and reduce inventory.
![the goal eliyahu goldratt summary chapter 2 the goal eliyahu goldratt summary chapter 2](https://itrevolution.com/wp-content/uploads/2019/12/DraggedImage-1-1.png)
It's an excellent book for anyone looking to change the way they think about work. I recently finished reading The Goal by Eliyahu Goldratt.