Question

Explain how the TOC steps are applied in making the decisions

Answer 1

Theory of constraints (TOC) is a method of finding a limiting factor which restricts to achieve a goal of an organization and then gradually trying to improve that limiting factor until it is no longer a barrier. The steps in the TOC process aims to restructure the entire organization so that it can achieve its goals successfully. While making manufacturing decision making, TOC tries to improve the process with high speed automated production lines so to remove any kind of bottleneck. On the other hand, while making decisions for supply chain and logistics, it tries to eliminate surpluses as well as to provide goods available at a greater quantity. TOC also makes decisions in finance and accounting after examining the operating expenses and investments. TOC also removes buffer from project related activities so that it can run smoothly.

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