Theory of Constraints, Accounting HW

Theory of Constraints, Accounting HW. 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 SuccinctMake sure you identify the BottleneckMake sure you identify the steps you are takingSelect appropriate example5Clearly Identify the Bottleneck5Suggest ways to apply the TOC10Possible Points20Theory of Constraints – A method for bringing about continuous improvementÿMovie NotesTOC StepsIdentify the Bottleneck/constraintExploit the Bottleneck/binding constraintSubordinate everything else to the decision made in step #2Elevate the binding constraint/BottleneckGo to step #1Throughputÿ? the rate at which an organization generates money through SALES(Throughputÿ= Sales ? Unit level variable costs.ÿ Direct Labor is treated as fixed.)Inventoryÿis all of the money the company spends turning materials into throughput.Operating expensesÿare defined as the money the organization spends to turn inventory into throughput.ÿThe HW is due in 8 hrs if you cant do it please dont send a handshake

Theory of Constraints, Accounting HW


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