The Management Practice That Increases Profitability Through the Management of Bottlenecks

question 34

Multiple Choice

The management practice that increases profitability through the management of bottlenecks is known as:

• A) the theory of constraints.
• B) the theory of restraints.
• C) the materiality principle.
• D) total quality management.

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Definitions:

Value-Added

The enhancement a company gives its product or service before offering the product to customers, increasing its value.

Non-Value-Added

Activities or processes that consume resources but do not add value to the product or service from the customer's perspective.

Total Lead Times

The aggregate time taken from the initiation of a process until its completion, often used in manufacturing to describe the period from ordering materials to the final product delivery.

Value-Added Ratio

The proportion of time spent on non-waste activities in the production process.