Elijahu M Goldrat’s A Book Report On Gold

The novel “the aim” by Elijahu m. Goldrat, a management-oriented book, downplays a new way for optimizing output levels. It presents constraint theory, commonly known as constraint theory. This book deviates from the conventional method, which focuses on maximizing the output of various equipment in order to achieve large-scale production. The theory of constraints focuses on how to employ bottleneck machines to help diverse organizations achieve their goals. It also attempts to generate money to ensure that the company survives both severe economic times and prepares for the company’s future. In the book, the author presents one Alex who is being mentored by a certain expert to prevent his plant from closing down. The author presents Alex who is a manager and owns a plant called Unico in which he is experiencing a problem at his plant where he is losing money, and he does not know how it experience such situation. This essay therefore, discusses the relationship between people’s actions and their effects to the various managerial positions in their plants as they find a way to make their plants successful.

The problems that are highlighted in the text affect Alex’s plant, he is in a position where the plant is losing a lot of money, and he does not understand where he is missing the point. The first problem that is the plant is losing a lot of money, and his plant will be shut down if he does not improve in the money generating process.

The main area that they needed to improve was more of the organization in the whole plant; it was also realized that they needed to reduce the expenses in the plant. This is seen in the book where Alex thinks that robots have an important role to play which Alex thinks it is reducing the costs of production. The main activity that needed to be changed was to improve the organizational structure of the plant. The improvements in the plant were supposed to be done in step by step manner. First their task was to identify the bottleneck in the ordinary course of their work, secondly was to determine how to exploit the bottleneck this is done by ensuring that they were maintaining the flow through the bottleneck. They should also make sure that they add the capacity of the bottleneck and if at the end of the process the bottleneck is Brocken they needed to repeat the process. Alex and the whole of the management team went through the entire step by step process although they were still going back to the starting point each time they changed the bottleneck. Through this repetitive process, they realize that they make a considerable profit in the course of the process. The break of the group Alex and his team agree to substitute the name from that of the bottle neck to that a constraint.

The impacts of the areas in problem-solving in the book were the key areas in the company that needed to be changed, for the plant to realize an enormous amount of profits. The goal of every company and the current economy is the generating of money and the realization of massive amounts of profits. Alex learns from Jonas various principles in which when applied he would realize a huge amount of profit. They adopt the notion that they need to cut expenses in order to achieve to an increase in profits in the plant.

In conclusion, the author provides a step by step way of generating money in an organization. These measures include, turn over, inventories and operational expenses. It also provides the various operations management that a manager can use in order to rescue their organizations or companies. The author also explains how the theory of constraints works and its benefits to the management of the company.