A Quick Guide to TOC

Front

What are the benefits of the Theory of Constraints (TOC)?

Back

Reduced Inventories, Reduced operating costs and expenses, Improved workplace synergy, All of the above.

Front

What is the purpose of The Thinking Process in TOC?

Back

To provide tools specifically designed for analysis of problems and coming up with their solutions.

Front

True or False: In business, a bottleneck limits the organization from improving profits.

Back

True.

Front

What is the main goal of the Theory of Constraints (TOC)?

Back

Profit Improvement.

Front

How do you calculate Return On Investment (ROI)?

Back

Net Profit / Investment.

Front

Define 'bottleneck' in the context of TOC.

Back

A bottleneck is a stage in a process that reduces the overall speed of the entire system, limiting throughput.

Front

What is throughput in TOC?

Back

Throughput is the rate at which the system generates money through sales.

Front

Explain the concept of 'constraint' in TOC.

Back

A constraint is any factor that limits the performance of a system and prevents it from achieving its goals.

Front

What is the first step in the TOC process?

Back

Identify the system's constraint.

Front

What does 'elevating the constraint' mean in TOC?

Back

It means taking actions to increase the capacity of the constraint to improve overall system performance.