Overview

theory of constraints


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A systematic approach that aims to identify and eliminate all bottlenecks in a production system. TOC aims to increase profits while simultaneously reducing stock levels and operating expenses.

Examples of TOC solutions include: providing additional training for employees to improve working speeds; replacing an existing bottleneck machine with a faster one; changing the design of a product to reduce manufacturing time.

providing additional training for employees to improve working speeds;

replacing an existing bottleneck machine with a faster one;

changing the design of a product to reduce manufacturing time.

Subjects: Accounting.


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