One Way to Manage Throughput Efficiently Is to Use a Theory

question 91

True/False

One way to manage throughput efficiently is to use a theory of constraints approach in an attempt to identify and remove bottlenecks in the system of production.

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Definitions:

Indirect Materials

Materials used in the production process, but cannot be directly associated with a specific product.

Finished Product

A good that has completed the manufacturing process and is ready for sale to customers.

Production Process

Refers to the method or sequence of operations involved in the production of a good or service.

Prime Costs

The combined costs of direct materials and direct labor, which are directly attributable to the production of goods.