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.
Select appropriate example
5
Clearly Identify the Bottleneck
5
Suggest ways to apply the TOC
10
Possible Points
20
Theory of Constraints – A method for bringing about continuous improvement
Movie Notes
TOC Steps
Throughput the rate at which an organization generates money through SALES
(Throughput= Sales Unit level variable costs. Direct Labor is treated as fixed.)
Inventoryis all of the money the company spends turning materials into throughput.
Operating expensesare 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
