|Date:||July 26, 2015|
|Length:||1 / 223|
|No of views:||0|
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Inventory is all the money that the system has invested in purchasing things which intends to sell, and operational expense is all the money the system spends in order to turn inventory into throughput. Then it turns out that the goal of an organization is to increase throughput while simultaneously reducing both inventory and operating expense...
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Theory of constraints approach includes the following steps to improve the performance of a system:
• Identify the system's constraint(s)
• Decide how to exploit the system's constraint(s)
• Subordinate everything else to exploit the constraint(s)
• Elevate the system's constraint(s)
• If in the previous steps a constraint has been broken, go back to step 1, but do not allow inertia to cause a system's constraint...
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