The Goal: A Process of Ongoing Improvement

The Goal: A Process of Ongoing Improvement

by

Eliyahu M. Goldratt and Jeff Cox

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Net profit measures the actual profit a company makes after all working expenses have been paid.

Net Profit Quotes in The Goal: A Process of Ongoing Improvement

The The Goal: A Process of Ongoing Improvement quotes below are all either spoken by Net Profit or refer to Net Profit. For each quote, you can also see the other terms and themes related to it (each theme is indicated by its own dot and icon, like this one:
The Importance of Goal-Setting Theme Icon
). Note: all page numbers and citation info for the quotes below refer to the The North River Press edition of The Goal: A Process of Ongoing Improvement published in 1984.
Chapter 36 Quotes

“Everywhere, improvement was interpreted as almost synonymous to cost savings. People are concentrating on reducing operating expenses as if it’s the most important measurement.”

“Not even that,” Bob interrupts. “We were busy reducing costs that didn’t have any impact on reducing operating expenses.”

“Correct,” Lou continues. “But the important thing is that we, in our plant, have switched to regard throughput as the most important measurement. Improvement for us is not so much to reduce costs but to increase throughput.”

Related Characters: Lou (speaker), Bob Donovan (speaker), Alex Rogo , Eliyahu Goldratt
Page Number: 297-298
Explanation and Analysis:
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The Goal: A Process of Ongoing Improvement PDF

Net Profit Term Timeline in The Goal: A Process of Ongoing Improvement

The timeline below shows where the term Net Profit appears in The Goal: A Process of Ongoing Improvement. The colored dots and icons indicate which themes are associated with that appearance.
Chapter 4
Ineffective vs. Effective Business Metrics Theme Icon
Efficiency vs. Optimization Theme Icon
Alex insists that a more efficient plant costs less money and thus makes a greater net profit . However, Jonah asks if his number of employees or amount of excess inventory has... (full context)
Chapter 6
The Importance of Goal-Setting Theme Icon
Ineffective vs. Effective Business Metrics Theme Icon
...a business needs to know if it makes more sales than its investments cost ( net profit ), how much return on its investment (ROI) it’s creating, and whether or not it... (full context)
The Importance of Goal-Setting Theme Icon
Ineffective vs. Effective Business Metrics Theme Icon
...home, Alex sits with a pad of paper and a pencil. He writes out “ net profit , ROI, and cash flow,” and stares at them, wondering if one can be prioritized... (full context)