Goldratt, E. M., & Cox, J. (1984). The goal: A process of ongoing improvement. North River Press.
The Goal is a business novel that became a management-school classic. Alex Rogo, a plant manager, has three months to turn around a site facing closure. Guided by Jonah, a physicist, he discovers that the goal of the company is neither the productivity of every machine nor the utilisation of every person: it is to make money, now and in the future.
Goldratt measures that goal with just three quantities: throughput, the money the system generates through sales; inventory; and operating expense. And he shows that the throughput of the whole plant is set by a single resource, the bottleneck. An hour lost at the bottleneck is an hour lost for the whole system; an hour saved elsewhere is a mirage. The theory of constraints grew out of this novel.
