12.5 Chapter 12 Assessment

Conceptual Questions:

Section 12.1: Introduction

• Question: According to the Theory of Constraints (TOC), what fundamentally limits the output of any system?

Section 12.2: The Five Focusing Steps

• Question: What is the first step in the Five Focusing Steps of the Theory of Constraints, and what does it involve?
• Question: What does the second step, “Exploit the Constraint,” specifically aim to achieve?
• Question: What is the purpose of the third step, “Subordinate Everything to the Constraint”?
• Question: What actions are taken during the “Elevate the Constraint” step?
• Question: What is the significance of the final step, “Do Not Let Inertia Creep In,” in the Theory of Constraints?

Section 12.3: The Drum-Buffer-Rope Method

• Question: In the Drum-Buffer-Rope method, what does the “drum” represent?
• Question: What role does the “buffer” play in the Drum-Buffer-Rope method?
• Question: How does the “rope” function within the Drum-Buffer-Rope method?

Section 12.4: Throughput Accounting

• Question: What is “Throughput” (T) in the context of throughput accounting?
• Question: How is “Operating Expense” (OE) defined in throughput accounting?

Situational Questions:

Situation 1: You manage a factory where the painting department has been identified as a bottleneck. Using the Five Focusing Steps, explain how you would approach improving the throughput of the entire factory.

Situation 2: In a call center, you notice that the call-handling team frequently has idle time due to inconsistent call volumes, while the team responsible for complex customer issues is overwhelmed. Describe how the Drum-Buffer-Rope method could be applied to balance the workload between these teams.