Goldratt’s “Theory of Constraints” A 2-3 line answer/explanation is enough for each question. #1. What is the goal? #2. Alex’s thinking seems to be “distorted” by conventional management accounting...

Goldratt’s “Theory of Constraints”


A 2-3 line answer/explanation is enough for each question.



#1.  What is the goal?

#2.  Alex’s thinking seems to be “distorted” by conventional management accounting metrics. What problem or problems does this lead to?
#3. What are the three operational measurements? Include a one or two sentence description of each.

#4. How is each operational measurement computed?

#5. Of the three measures, which measure has the greatest impact on profitability? Briefly, describe why this differential impact might be true.
#6. What are the five focusing steps as first described?
#7. What are the five focusing steps that are finally settled upon?
#8.  What are the six “takeaways” on how to drive continuous improvement?

#9.  How might this approach be useful almost any organization)?

#10. Any other comments that you care to make. *** Your general assessment of TOC. *** *** Of special interest is any experience you might have had with using the TOC. Basic situation or problem.  Action taken.   Success or failure?