The Fourth Step in Theory of Constraints Application, "Elevate the Bottleneck(s)

question 51

Multiple Choice

The fourth step in Theory of Constraints application, "elevate the bottleneck(s) ," means that the analyst should:

• A) create a schedule that maximizes the throughput of the bottlenecks.
• B) repeat the analysis process to look for other bottlenecks.
• C) consider increasing capacity of the bottleneck.
• D) schedule non-bottleneck resources to support the bottleneck.

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Definitions:

Remuneration Expense

Costs incurred by an organization to compensate its employees, including salaries, wages, bonuses, and benefits.

Vesting Period

The time period an employee must wait before gaining access to the employer's contributions in a pension plan or stock options.

Incremental Fair Value

The additional amount that a company expects to earn from acquiring a new asset over its current market value.

Vesting Period

The period of time an employee must wait until they have the full right to exercise their stock options or benefits.