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Question 334 - CSCP discussion

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The use of theory of constraints (TOC) differs from traditional decision making because it:

A.
examines the resource's utilization rather than the cost of a product
Answers
A.
examines the resource's utilization rather than the cost of a product
B.
recognizes that the individual resources that limit business performance are difficult to find and manage
Answers
B.
recognizes that the individual resources that limit business performance are difficult to find and manage
C.
places greater emphasis on timing than cost in adjusting resources that are limiting business performance
Answers
C.
places greater emphasis on timing than cost in adjusting resources that are limiting business performance
D.
provides a way to analyze the operating cost of a resource that is easier to use than traditional accounting methods
Answers
D.
provides a way to analyze the operating cost of a resource that is easier to use than traditional accounting methods
Suggested answer: C

Explanation:

The Theory of Constraints (TOC) differs from traditional decision-making approaches by focusing more on timing rather than just cost when adjusting resources that limit business performance. Key points include:

Identification of Bottlenecks: TOC identifies and addresses the most critical bottlenecks that constrain the system's overall throughput.

Focus on Throughput: Emphasizing increasing throughput rather than just cost reduction ensures that the entire system's performance improves.

Timing and Synchronization: TOC places significant emphasis on the timing and synchronization of processes to ensure that bottlenecks are effectively managed and do not impede overall production flow.

Continuous Improvement: By continually identifying and addressing constraints, TOC fosters a culture of continuous improvement and operational efficiency.

Goldratt, E. M., & Cox, J. (2004). The Goal: A Process of Ongoing Improvement. North River Press.

Dettmer, H. W. (1997). Goldratt's Theory of Constraints: A Systems Approach to Continuous Improvement. ASQ Quality Press.

asked 16/09/2024
Juliet Kihonge
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