Find an example of a significant bottleneck (constraint) in any organization that you are familiar with and explain how you can apply the Theory of Constraints to solve the bottleneck.
Be Clear and Succinct
Make sure you identify the Bottleneck
Make sure you identify the steps you are taking
Select appropriate example
Clearly Identify the Bottleneck
Suggest ways to apply the TOC
Theory of Constraints – A method for bringing about continuous improvement
- Identify the Bottleneck/constraint
- Exploit the Bottleneck/binding constraint
- Subordinate everything else to the decision made in step #2
- Elevate the binding constraint/Bottleneck
- Go to step #1
– the rate at which an organization generates money through SALES
= Sales – Unit level variable costs. Direct Labor is treated as fixed.)
is all of the money the company spends turning materials into throughput.
are defined as the money the organization spends to turn inventory into throughput.
The HW is due in 8 hrs if you cant do it please dont send a handshake