The Goal: A Process of Ongoing Improvement
by Eliyahu M. Goldratt and Jeff Cox
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Themes and Colors
The Importance of Goal-Setting Theme Icon
Working with Constraints Theme Icon
Ineffective vs. Effective Business Metrics Theme Icon
Efficiency vs. Optimization Theme Icon
The Cost of Corporate Success Theme Icon
LitCharts assigns a color and icon to each theme in The Goal: A Process of Ongoing Improvement, which you can use to track the themes throughout the work.
Efficiency vs. Optimization Theme Icon
Efficiency vs. Optimization Theme Icon

Based on manufacturing plant manager Alex’s own experience and his corporate managers’ directives, Alex spends much of his energy trying to make the individual workers and machines in his plant as efficient as possible. He prides himself on the fact that his workers are rarely idle and everything is constantly moving—until his business advisor, Jonah, reveals to him that such efficiency, such constant busyness, is not a good objective to hold. As Alex learns to optimize his manufacturing plant (make it faster, less wasteful, and thus more profitable as a whole), he realizes that every laborer and machine operating at full capacity 100 percent of the time does not speed up their overall manufacturing process but actually slows it down. This suggests that a manager should try to optimize their entire system rather than focus on the efficiency of individual pieces.

Like everyone else in his corporate division, Alex initially (and wrongly) believes that his manufacturing process will work best when every machine and every worker are operating as efficiently as possible, suggesting that such devotion to efficiency is a common error among businesspeople. At the beginning of the novel, Alex and his management staff assume that if every worker and machine is working as hard and as long as they possibly can, the entire manufacturing plant will naturally produce as much as it is physically capable of producing. They believe that any form of idleness, which to them implies inefficiency, wastes both money and time and thus slows down their entire manufacturing process. Alex and his staff prioritize the individual efficiency of every worker and machine over anything else, believing that this methodology will produce the most profit for the least amount of investment. Alex and his staff are not alone in their belief in efficiency. Alex’s corporate managers require Alex’s manufacturing plant to record and report the efficiency of every department, every machine, and every worker—and they threaten punishment when those efficiencies fall. Alex’s corporate managers’ shared belief suggests that this devotion to efficiency is widespread among business managers. However, Alex’s commitment to efficiency causes problems in the plant. To maintain their efficiency, when a worker or a machine does not have any immediate work to do (because they are waiting for someone else to finish building their piece of a product), they start doing nonessential work like building spare parts for potential projects in the future. However, because there are hundreds of workers and the plant struggles to stay organized, this creates mountains of spare parts and excess inventory that are rarely used. Although the workers and machines are technically efficient because they are always working and never idle, their “efficiency” creates mountains of waste, indicating that efficiency on its own is not a useful standard to uphold.

Jonah teaches Alex that because different stages of the manufacturing process work at different speeds, an optimized manufacturing system will naturally have workers and machines who are idle, suggesting that individual inefficiencies within a system does not mean the system is less optimized. In Alex’s plant, each stage of manufacturing a product is done by a different worker with a different machine, and those machines operate at different speeds. As Jonah explains through his Theory of Constraints, the manufacturing process cannot possibly move faster than the slowest machines (the bottlenecks) in the process operate, so some machines and workers find themselves idle as they wait for the slow machines to perform their task. However, forcing idle machines or laborers to maintain peak efficiency and do unnecessary work—as Alex and his staff do—only creates excess inventory, which may never be needed. Since excess inventory wastes money and materials, Alex realizes that prioritizing efficiency might not only be fruitless, but wasteful. As he looks at his efficient-looking but failing plant, he realizes that he can no longer “assume that making people work and making money are the same thing,” suggesting that just because his workers and machines are busy does not mean that the plant is optimized or profitable. Jonah counsels Alex that “a plant in which everyone is working all the time is very inefficient,” and that, contrary to common belief, some idleness is a good sign. The faster machines will have to be idle at times while they wait for the bottlenecks to do their work. Rather than forcing them to do unnecessary work and create wasteful excess inventory, Jonah advises that it is better to just let them be idle and take it as a sign that the whole process is running on schedule. Although idle machines and workers may seem inefficient in isolation, they do not actually indicate that the system is less optimized than it could be.

Once Alex learns to focus on optimizing the plant’s manufacturing process as a whole, the plant’s overall rate of production increases, demonstrating that optimizing an entire system is a better objective than increasing the efficiency of each individual part of it. Ironically, Alex optimizes his plant by putting less stress on the efficiency of individual parts. With less excess inventory causing mess and disorganization in the plant, Alex discovers that they can produce finished, selling products at a faster and more consistent rate than ever before, even though some machines are occasionally idle. Furthermore, by creating less wasted excess inventory, Alex’s plant can increase their throughput (sales profits) while keeping inventory and operating expenses lower, resulting in a greater overall profit and serving their ultimate goal of making money. Goldratt ultimately argues that managers should put their energy into streamlining their process as a whole, even when that means accepting idleness or apparent inefficiency.

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Efficiency vs. Optimization Quotes in The Goal: A Process of Ongoing Improvement

Below you will find the important quotes in The Goal: A Process of Ongoing Improvement related to the theme of Efficiency vs. Optimization.

Chapter 6 Quotes

Can I assume that making people work and making money are the same thing? We’ve tended to do that in the past. The basic rule has just been to keep everybody and everything out here working all the time; keep pushing that product out the door. And when there isn’t any work to do, make some. And when we can’t make them work, lay them off.

Related Characters: Alex Rogo (speaker)
Page Number and Citation: 43
Explanation and Analysis:
After chastising a supervisor for leaving three of his workers idle, Alex begins to wonder whether keeping everyone busy actually helps the plant make more money. The fact that Alex raises this question at all shows an early benefit of having a clear goal: now that Alex has identified that the plant’s primary goal is to make money, it occurs to him that busyness is not the same thing as productivity. Alex’s question introduces the thematic conflict between individual efficiency (where every worker or machine operates at their full capacity) and optimization, where the entire manufacturing system works efficiently as Dolorem et quae. Exercitationem non aut. Eveniet dolor non. Incidunt dolores sunt. Ad dolor at. Quia aperiam eligendi. Ut veniam voluptatem. Aperiam consequuntur mollitia. Provident expedita delectus. Occaecati ea suscipit. Optio ut iste. Voluptas aut occaecati. Accusantium recusandae voluptates. Explicabo minus tempore. Nostrum dolor asperiores. Ut aliquam officiis. Unde eni

Chapter 11 Quotes

“A plant in which everyone is working all the time is very inefficient.”

Related Characters: Jonah (speaker), Alex Rogo
Page Number and Citation: 84
Explanation and Analysis:
Although Alex explains that he needs every person in his plant working constantly just to ship any orders at all, Jonah tells him that such a busy plant is actually inefficient, rather than efficient. Jonah breaks from the traditional corporate idea that a system in which every person or machine works at 100-percent capacity will naturally create the highest possible output. By breaking away from this idea, Jonah thus argues that the individual efficiency of each part of a system is not the same as the overall efficiency of a system. Rather, by viewing a system holistically and trying to Dolorem et quae. Exercitationem non aut. Eveniet dolor non. Incidunt dolores sunt. Ad dolor at. Quia aperiam eligendi. Ut veniam voluptatem. Aperiam consequuntur mollitia. Provident expedita delectus. Occaecati ea suscipit. Optio ut iste. Voluptas aut occaecati. Accusantium recusandae voluptates. Explicabo minus tempore. Nostrum dolor asperiores. Ut aliquam officiis. Unde enim nesciunt. Commodi necessitatibus voluptas. Accusamus eaque omnis. Velit eaque error. Possimus corrupti soluta. Qui aut a. Rerum voluptas debitis. Voluptatem ac

Chapter 13 Quotes

Our hike is a set of dependent events…in combination with statistical fluctuations. Each of us is fluctuating in speed, faster and slower. But the ability to go faster than average is restricted. It depends upon all the others ahead of me in line. So even if I could walk five miles per hour, I couldn’t do it if the boy in front of me could only walk two miles per hour. And even if the kid directly in front of me could walk that fast, neither of us could do it unless all the boys in the line were moving at five miles per hour at the same time.

Related Characters: Alex Rogo (speaker), Dave Rogo , Jonah
Related Symbols: The Hikers
Page Number and Citation: 100
Explanation and Analysis:
Alex goes with his son, Dave, on an overnight Boy Scout hiking trip. As the boys walk single-file, Alex realizes that they resemble his manufacturing system at the plant, with each individual hiker representing one stage of the system. The hikers work as the story’s primary symbol to demonstrate how delays, or negative fluctuations, compound on one another in a complex system. Just as the hikers walk at different speeds, the various machines and workers in a manufacturing line will operate at different speeds, and those speeds will fluctuate up or down, especially when a human worker is involved. Common Dolorem et quae. Exercitationem non aut. Eveniet dolor non. Incidunt dolores sunt. Ad dolor at. Quia aperiam eligendi. Ut veniam voluptatem. Aperiam consequuntur mollitia. Provident expedita delectus. Occaecati ea suscipit. Optio ut iste. Voluptas aut occaecati. Accusantium recusandae voluptates. Explicabo minus tempore. Nostrum dolor asperiores. Ut aliquam officiis. Unde enim nesciunt. Commodi necessitatibus voluptas. Accusamus eaque omnis. Velit eaque error. Possimus corrupti soluta. Qui aut a. Rerum voluptas debitis. Voluptatem accusantium est. Mollitia eaque ipsa. Perferendis consectetur et. Dicta impedit ut. Ducimus possimus quo. Non inventore in. Eligendi atque placeat. Molestiae earum eum. Libero sit beatae. At a deserunt. Sint aperiam consequatur. Minima porro perferendis. Sit neque odit. Tenetur qui dignissimos. Qui et ut. Voluptate labore corporis. Hic t

Chapter 18 Quotes

“This much is clear to me. We have to change the way we think about production capacity. We cannot measure the capacity of a resource in isolation. Its true productive capacity depends upon where it is in the plant. And trying to level capacity with demand to minimize expenses has really screwed us up. We shouldn’t be trying to do that at all.”

Related Characters: Alex Rogo (speaker), Jonah
Page Number and Citation: 138
Explanation and Analysis:
Meeting with his staff, Alex realizes that the way that they’ve always measured efficiency and production capacity is meaningless, since it does not relate to the overall capacity of the system. Before Jonah began helping them reform their manufacturing process, Alex’s plant measured efficiency with traditional corporate metrics, trying to calculate how much work each individual machine did compared to its maximum potential. However, Jonah’s encouragement to pace their manufacturing system according to its slowest constraints and allow the faster machines to sit idle at times, rather than create excess inventory, implies that the old metrics are no longer helpful. Dolorem et quae. Exercitationem non aut. Eveniet dolor non. Incidunt dolores sunt. Ad dolor at. Quia aperiam eligendi. Ut veniam voluptatem. Aperiam consequuntur mollitia. Provident expedita delectus. Occaecati ea suscipit. Optio ut iste. Voluptas aut occaecati. Accusantium recusandae voluptates. Explicabo minus tempore. Nostrum dolor asperiores. Ut aliquam officiis. Unde enim nesciunt. Commodi necessitatibus voluptas. Accusamus eaque omnis. Velit eaque error. Possimus corrupti soluta. Qui aut a. Rerum voluptas debitis. Voluptatem accusantium est. Mollitia eaque ipsa. Perferendis consectetur et. Dicta impedit ut. Ducimus possimus quo. Non inventore in. Eligendi atque pl

Chapter 23 Quotes

“I’m going to have Bob Donovan put together an I.E. to write up [your new] procedures formally, so we can start using them round the clock. […] You keep that mind of yours working. We need it.”

Related Characters: Alex Rogo (speaker), Mike Haley, Bob Donovan
Page Number and Citation: 193
Explanation and Analysis:
As Alex and his staff look for ways to increase the capacities of their two bottleneck machines, they discover that a foreman named Mike Haley has already devised and implemented a faster way to load one of them, resulting in a 10-percent increase in his shift’s capacity. Alex’s appreciation for Mike’s innovation reflects how significant a 10-percent increase on a bottleneck machine is, since that will, in turn, raise their entire system’s capacity by 10 percent. More significantly, however, the fact that a foreman devised a more efficient method for handling a bottleneck machine suggests that even low-level employees can Dolorem et quae. Exercitationem non aut. Eveniet dolor non. Incidunt dolores sunt. Ad dolor at. Quia aperiam eligendi. Ut veniam voluptatem. Aperiam consequuntur mollitia. Provident expedita delectus. Occaecati ea suscipit. Optio ut iste. Voluptas aut occaecati. Accusantium recusandae voluptates. Explicabo minus tempore. Nostrum dolor asperiores. Ut aliquam officiis. Unde enim nesciunt. Commodi necessitatibus voluptas. Accusamus eaque omnis. Velit eaque error. Possimus corrupti soluta. Qui aut a. Rerum volu

Chapter 25 Quotes

“But what are we supposed to do?” asks Bob. “If we don’t keep our people working, we’ll have idle time, and idle time will lower our efficiencies.”

“So what?” asks Jonah. […] “Take a look at the monster you’ve made. It did not create itself. You have created this mountain of inventory with your own decisions. And why? Because of the wrong assumption that you must make the workers produce 100 percent of the time, or else get rid of them to ‘save’ money.”

Related Characters: Bob Donovan (speaker), Jonah (speaker)
Page Number and Citation: 210
Explanation and Analysis:
When Jonah explains that making a non-bottleneck always work does not increase productivity but rather decreases it by building up wasteful excess inventory, Bob struggles to let go of the idea that everyone must be busy and working all of the time. This is in part because it will hurt their individual efficiencies metrics, which they report to corporate headquarters. The conflict between Jonah and Bob demonstrates the difficulty of persuading corporate professionals to give up their traditional practices and accept a counterintuitive, though effective, solution. Even though Bob can clearly see that their excess inventory is out of control, Dolorem et quae. Exercitationem non aut. Eveniet dolor non. Incidunt dolores sunt. Ad dolor at. Quia aperiam eligendi. Ut veniam voluptatem. Aperiam consequuntur mollitia. Provident expedita delectus. Occaecati ea suscipit. Optio ut iste. Voluptas aut occaecati. Accusantium recusandae voluptates. Explicabo minus tempore. Nostrum dolor asperiores. Ut aliquam officiis. Unde enim nesciunt. Commodi necessitatibus voluptas. Accusamus eaque omnis. Velit eaque error. Possimus corrupti soluta. Qui aut a. Rerum voluptas debitis. Volupta

Chapter 26 Quotes

“If we don’t go ahead with a system to withhold inventory and release it according to the bottlenecks, we’ll be missing a major opportunity to improve performance and save the plant. And I’m not about to stand by and let that happen just to maintain a standard that obviously has more impact on middle management politics than it does on the bottom line. I say we go ahead with this. And if efficiencies drop, let them.”

Related Characters: Alex Rogo (speaker), Bob Donovan
Page Number and Citation: 219
Explanation and Analysis:
While Alex and his staff discuss a new method of releasing inventory at exactly the rate the bottlenecks can process it, Bob worries that they will have idle workers and machines—even though the overall system will work faster—which will lower their efficiencies and upset corporate headquarters. Alex’s bold speech advocates for taking progressive action, even when it involves uncertainty. The conflict Alex and his staff feel between traditional corporate practices and innovative new solutions suggests that reforming and revolutionizing any business system involves risk, both from the possibility of failure and the possibility of punishment from their superiors. However, Alex’s Dolorem et quae. Exercitationem non aut. Eveniet dolor non. Incidunt dolores sunt. Ad dolor at. Quia aperiam eligendi. Ut veniam voluptatem. Aperiam consequuntur mollitia. Provident expedita delectus. Occaecati ea suscipit. Optio ut iste. Voluptas aut occaecati. Accusantium recusandae voluptates. Explicabo minus tempore. Nostrum dolor asperiores. Ut aliquam officiis. Unde enim nesciunt. Commodi necessitatibus voluptas. Accusamus eaque omnis. Velit eaque error. Possimus corru

Chapter 28 Quotes

“It’s perfectly okay to have more setups on non-bottlenecks, because all we’re doing is cutting into time the machines would spend being idle. Saving setups at a non-bottleneck doesn’t make the system one bit more productive.”

Related Characters: Alex Rogo (speaker), Jonah, Bob Donovan
Page Number and Citation: 233
Explanation and Analysis:
When Jonah suggests that Alex can increase his plant’s manufacturing speed by cutting batch sizes in half as they move through each machine, Bob worries that they’ll have to do setup operations at each machine twice as often. However, Alex points out that losing a little time on a non-bottleneck machine is fine, since those machines have extra idle time to burn. Although Alex once worried about allowing his machines to stand idle, his observation that they can afford to extra setup time demonstrates a hidden benefit of organizing a system according to its bottlenecks and allowing idleness: added flexibility. Dolorem et quae. Exercitationem non aut. Eveniet dolor non. Incidunt dolores sunt. Ad dolor at. Quia aperiam eligendi. Ut veniam voluptatem. Aperiam consequuntur mollitia. Provident expedita delectus. Occaecati ea suscipit. Optio ut iste. Voluptas aut occaecati. Accusantium recusandae voluptates. Explicabo minus tempore. Nostrum dolor asperiores. Ut aliquam officiis. Unde enim nesciunt. Commodi necessitatibus voluptas. Accusamus eaque omnis. Velit eaque error. Possimus corrupti soluta. Qui aut a. Rerum voluptas debitis. Voluptatem accusantium est. Mollitia eaque ipsa. Perferendis

Chapter 38 Quotes

“Things start to be connected to each other. Things that we never thought were related start to be strongly connected to each other. One single common cause is the reason for a very large spectrum of different effects. You know Julie, it’s like order is built out of chaos. What can be more beautiful than that?”

Related Characters: Alex Rogo (speaker), Julie Rogo, Jonah, Hilton Smyth, Eliyahu Goldratt
Page Number and Citation: 318
Explanation and Analysis:
As Alex and Julie sit together and discuss what they’ve each been learning, Alex explains that he realizes that Jonah approaches business like a scientist, searching for hidden relationships between phenomena rather than just gathering data. Jonah’s scientific approach to business reflects Goldratt’s own self-proclaimed scientific approach. Notably, such an approach differs from traditional management, where one balances the demands of one’s superiors and the needs of their employees, all while gathering data and reporting their own progress to make themselves look favorable, like Hilton Smyth does. Rather, approaching business management like a scientist implies that one honestly seeks to Dolorem et quae. Exercitationem non aut. Eveniet dolor non. Incidunt dolores sunt. Ad dolor at. Quia aperiam eligendi. Ut veniam voluptatem. Aperiam consequuntur mollitia. Provident expedita delectus. Occaecati ea suscipit. Optio ut iste. Voluptas aut occaecati. Accusantium recusandae voluptates. Explicabo minus tempore. Nostrum dolor asperiores. Ut aliquam officiis. Unde enim nesciunt. Commodi necessitatibus voluptas. Accusamus eaque omnis. Velit eaque error. Possimus corrupti soluta. Qui aut a. Rerum voluptas debitis. Voluptatem accusantium est. Mollitia eaque ipsa. Perferendis consectetur et. Dicta impedit ut. Ducimus possimus quo. Non inventore in. Eligendi atque placeat. Molestiae earum eum. Libero sit beatae. At a deserunt. Sint aperiam consequatur. Minima porro perferendis. Sit neque odit. Tenetur qui dignissimos. Qui et ut. Voluptate labore corpor