Theory Of Constraints (Toc)

Concepts and methodology aimed (like lean production) mainly at achieving most efficient flow of material in a plant through ‘continuous process improvement’ (CPI). Basically a scheduling and inventory control philosophy, it proposes that (1) a firm is a ‘chain’ of interdependent links (departments, functions, resources) some of which may have potential for greater performance but cannot realize it because of a weak link that is an (2) external or internal bottleneck (constraint) and every firm has at least one. (3) The highest priority of a management is (or should be) to maximize the firm’s throughput (rate of generation of revenue) and not just output (rate of generation of goods or services).

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