The Theory of Constraints Was Developed to Maximize the Performance

question 79

Essay

The Theory of Constraints was developed to maximize the performance of a value chain.According to the theory,five steps are required to maximize and improve the performance of a value chain.
Required:
a.List the five steps.
b.Define the two terms bottleneck process and throughput contribution.Indicate how these terms are related to the theory of constraints.
Unit 8-4,

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Definitions:

Mortgage Insurance

Insurance that compensates a lender for losses due to a borrower’s default on a mortgage loan.

Debtor

An individual or organization that owes money to another party, typically as a result of being lent a sum of money or extended credit.

Default

Failure to pay a debt when it is due.

Mortgage

A legal agreement by which a bank, building society, etc. lends money at interest in exchange for taking title of the debtor's property, with the condition that the conveyance of title becomes void upon the payment of the debt.