The Theory of Constraints Uses the Following Five Steps to Achieve

question 118

Multiple Choice

The theory of constraints uses the following five steps to achieve its goal of improving organizational performance: What is the correct order for performing these steps?

• A) 3, 1, 5, 2, 4
• B) 3, 5, 1, 2, 4
• C) 1, 3, 5, 2, 4
• D) 3, 1, 5, 4, 2

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Definitions:

Third Party

An entity involved in a transaction besides the two main parties; in insurance, the person other than the policyholder and the insurer who may be affected by or have a claim against the policy.

Costs

The amount that must be paid or spent to buy or obtain something.

Compensation

Payment or benefits received for services rendered or damages incurred; often used in the context of employment.

Invisible Hand

A term coined by Adam Smith to describe the unintended social benefits resulting from individual actions when those actions are motivated by self-interest.