1) A bottleneck is an operation that has
the lowest effective capacity of any operation in the process.
2) The process with the least capacity is
called a bottleneck if its output is less than market demand.
3) The process with the least capacity is
called a bottleneck if its output is still greater than the market demand.
4) Operating processes close to their
capacity can result in low customer satisfaction and even losing money despite
high sales levels.
5) The Theory of Constraints method is
also referred to as the drum-buffer-rope method.
6) According to the Theory of Constraints,
the four operational measures include inventory, throughput, delivery lead
times and utilization.
7) A business school with plenty of
classroom space that hires adjunct faculty for a semester to meet unusually
high student demand for courses is an example of elevating a bottleneck.
8) Any system composed of resources that
are operating at maximum output will, by definition, have maximum output for
the entire system.
9) In a shop managed according to TOC
principles, inventory is needed only in front of bottlenecks in order to
prevent them from sitting idle.
10) The first step in applying the Theory
of Constraints is to identify the constraint.
11) The final step in applying the Theory
of Constraints is to repeat the first four steps.
12) Lanny discovers that the bottleneck is
the riveting machine so he schedules all production around when that machine is
available. This is an example of elevating the constraint in the five-step
constraint management process.
