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Continue the summaryThe Goal, a masterfully crafted business novel by Eliyahu M. Goldratt, exposes readers to the world of constraints in the manufacturing process using a well-framed fictional example with which they can readily relate. Eliyahu M. Goldratt was a teacher, author, physicist, philosopher, and business chief. Co-author Jeff Cox is a decorated author of seven business books, many of which are bestsellers. He has also authored several books on gardening.
As managers struggle with finding the proper techniques to apply to break even, Eliyahu Goldratt has a solution in this educative and captivating piece of literature. He outlines what causes businesses to experience hard times and how to handle them when they arise. The goal of management is to maximize profit while ensuring the resources are saved. If you want to be a good manager, this is the tidbit for you.
"So, this is the goal: To make money by increasing net profit, while simultaneously increasing return on investment, and simultaneously increasing cash flow." ~ Eliyahu Goldratt
Key points
1
The art of management: an in–depth look into the machinations of management
Management describes planning, organizing, leading, motivating, and controlling the resources of an organization to reach its goals efficiently and effectively. It entails the careful orchestration of the many parts of an organization to achieve an endpoint.
Management ensures all the working parts of an organization are geared towards success and profit.
Management isn't only applicable in firms or corporations; it is essential in just about every organization. There are examples of organizations in every sphere of life. Organization refers to a collection of people who are involved in pursuing defined objectives. It can also be referred to as the second most crucial managerial function that coordinates employees' work, procures resources, and combines the two to pursue the company's goals.
A manager must devise workable strategies that will maximize output and profit.
A manager is an individual that is responsible for the supervision and motivation of a firm’s employees. They are also in charge of directing the running and progress of an organization. A good manager makes it his duty to adequately handle the organization's affairs to maximize output and profit at the same time. If a manager cannot properly “manage” his resources: human, financial, etc., he is sure to fail and will get replaced.
Some managers struggle with finding the proper techniques to apply to break even, but Eliyahu Goldratt has a solution in this educative and captivating piece of literature. He outlines what causes businesses to experience hard times and how to handle them when they arise. The goal of management is to maximize profit while making sure the resources are safe. If you want to be a good manager, this is the tidbit for you.
Some managers struggle with finding the proper techniques to apply to break even, but Eliyahu Goldratt has a solution in this educative and captivating piece of literature. He outlines what causes businesses to experience hard times and how to handle them when they arise. The goal of management is to maximize profit while making sure the resources are safe. If you want to be a good manager, this is the tidbit for you.
2
A good manager can observe a system and identify obstacles to its productivity
When it comes to running a business, there may be certain limitations one might encounter. These constraints hamper productivity and cause the company to lose money instead of making a profit. The goal is to identify them and find solutions to them while maximizing output and profit.
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An intelligent manager should try to utilize any bottleneck to the company's advantage
4
The constraints that are within members of staff/human resources should be handled using clear communication
5
To get the best out of your production process, commit more resources to each working part
6
Without the presence of trained and qualified staff, you run a risk of reduced productivity and output
7
When you dedicate more resources to the bottleneck, it translates into greater productivity
8
Conclusion
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