The Theory of Constraints (TOC) differs from traditional decision-making approaches by focusing more on timing rather than just cost when adjusting resources that limit business performance. Key points include:
Identification of Bottlenecks: TOC identifies and addresses the most critical bottlenecks that constrain the system's overall throughput.
Focus on Throughput: Emphasizing increasing throughput rather than just cost reduction ensures that the entire system's performance improves.
Timing and Synchronization: TOC places significant emphasis on the timing and synchronization of processes to ensure that bottlenecks are effectively managed and do not impede overall production flow.
Continuous Improvement: By continually identifying and addressing constraints, TOC fosters a culture of continuous improvement and operational efficiency.
[References:, Goldratt, E. M., & Cox, J. (2004). The Goal: A Process of Ongoing Improvement. North River Press., Dettmer, H. W. (1997). Goldratt's Theory of Constraints: A Systems Approach to Continuous Improvement. ASQ Quality Press., , , , ]
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