The theory of constraints is a management approach that examines the limiting factors that are preventing an organization from achieving its goals. This is based on the idea that a chain is only as strong as its weakest link. As such, the theory of constraints is focused on identify and clearing bottlenecks in processes, policies and procedures.
A theory of management that states that bottlenecks are often the cause of process and project inefficiency.
A telecom company takes an average of 7 days to deliver an order to business customers. Of that time, 3 days is consumed by internal approval processes that represent an administrative bottleneck.
This is the complete list of articles we have written about management accounting.
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A list of management accounting examples.
A definition of target costing with examples.
A definition of continuous improvement with examples.
An overview of takt time with calculation formula and example.
The difference between lead time and cycle time explained with an example.
How to calculate productivity with 3 examples.
A definition of complexity cost with examples.
The definition of run rate with calculation examples.
The definition of managerial economics with examples.
A list of decision making techniques.
The observation that groups may make collective decisions that are viewed as wrong or irrational by each individual member of the group.
A complete guide to the decision making process.
The difference between rational thought and logic.
The common types of uncertainty in decision making and strategy.
A definition of information costs with examples.
A definition of reverse brainstorming with examples.
The definition of decision fatigue with examples.
Taking a position that you do not necessarily agree with for the purposes of argument.
The definition of paradox of choice with examples.
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