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Necessary But Not Sufficient, by Eliyahu M. Goldratt, Eli Schragenheim, Carol A. Ptak
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After reading the newspapers and following the sharp oscillations of the stock market, it becomes apparent that hi-tech companies are of a different breed. Never before have the chances of making a fortune been so realistic and never before have large companies been so fragile. What is really going on inside these hi-tech companies? What types of pressures and challenges are they facing? And how do they cope?
Computer software providers, especially the ones that specialize in handling the data needs of organizations, are prime examples of these volatile companies. In the nineties we witnessed their growth from small businesses into multi-billion dollar giants. No wonder investors were attracted.
In 1998 it was easy for such companies to raise as much money as they wanted. But now, investment funds have dried up. Why? And more importantly, is there a way to reverse the trend? This book gives the answers.
- Sales Rank: #611544 in Books
- Color: Other
- Brand: Brand: North River Pr
- Model: 1050434
- Published on: 2000-10
- Original language: English
- Number of items: 1
- Dimensions: 8.75" h x 5.75" w x .50" l, .79 pounds
- Binding: Paperback
- 231 pages
- Great product!
About the Author
Eliyahu M. Goldratt was the creator of the Theory of Constraints and the author of the bestsellers The Goal, It's Not Luck and Critical Chain. Carol A. Ptak is a leading authority in the use of ERP and Supply Chain tools to drive improved bottom line performance, Ms Ptak's expertise is well grounded in over two decades of practical experience as a successful practitioner, consultant and educator in manufacturing operations. Eli Schragenheim is one of the pioneers of TOC and is recognized as an authority in ERP related simulations. He has published several papers in academic and practitioner journals and has delivered hundreds of workshops for managers.
Most helpful customer reviews
0 of 0 people found the following review helpful.
A few insights, but otherwise superfluous
By Tiago
I think the narrative format originally deployed in The Goal has been overextended here. Once you understand the heavyweight ideas of TOC, you're ready to accept new ideas in a more condensed format, such as in The Race. This book felt like a short commentary on some of the technological implications of TOC, embedded in a rather boring story short on details. I'm also afraid that technology has evolved much faster and farther in the years since publication, with far greater implications than anyone would have guessed. Technology may still be necessary but not sufficient, but increasingly it is changing the rules, not just operating within them.
16 of 18 people found the following review helpful.
Thought Provoking
By H.C. Joiner
To say that there's nothing of value here is incorrect. True, it helps to have read The Goal. Not only is an explanation of drum-buffer-rope needed, so is a definition of Murphy. No doubt this alienates the uninitiated, as might the book's meandering plot. However, there are a few ideas here that are pure gold.
One such idea is that using technology to add value by increasing capacity only improves net income when overhead is cut. I have personally seen ERP value proposition spreadsheets that haphazardly combine income statement and capacity improvements to arrive at a total "value created" number for the client. Capacity improvements are a means to value creation, not an end. Technology firms that misunderstand this will have problems cost justifying their solutions to their clients. They should read this book.
Another golden idea is that technology deployment is only one part of the business improvement process. The other (perhaps more important) part of the process comes from changing the success metrics surrounding the area that deploys the technology. For example, if Tyson pays its plant managers to maximize efficiencies, it's natural that they will increase the chicken supply regardless of expected demand, burning cash in the process. Accordingly, technology driven capacity increases will drive up finished goods inventories unless firms change the way they reward their plant managers.
This book has bold implications for CPFR software users. How likely is it that plant managers at the top of the supply-chain will do what's in the best interest of the entire supply-chain if doing so makes them look like they are doing a poor job? Not many. And what if the members of a given supply-chain are different companies, with different lending ratios, stock prices, industry benchmarks, and so on? And whose customer is the end-user anyway? Thought provoking.
If anything, the book educates supply-chain students that for every action, there is an equal and opposite reaction. Sure it's fun to think theoretically about supply-chain management, but the real world is a cruel mistress. This book reminds us that if CPFR and ERP were such a great ideas, then there would be no unprofitable vertically integrated companies. Reason enough to buy the book.
0 of 0 people found the following review helpful.
great book
By Jason Crowe
Great book.
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