Module 05 Discussion – Theory of Constraints

Read the article “IS TOC FOR YOU?“ concerning the Theory of Constraints and comment on the following questions:

1. How might the theory of constraints be implemented in a Lean organization? How about in an Activity Based Management organization?
2. How does the Theory of Constraints relate to continuous improvement?
3. One complaint about the Theory of Constraints is its short term focus. Do you feel this is detrimental? Why? Is there a way to give it a more long-term focus?
4. What is your reaction to the concept of all costs other than direct materials are fixed?