Describe the theory of Constraints?
Breakeven Analysis
Break Even Analysis is a term used in business, cost accounting and economics. It refers to a point where the total cost incurred becomes equal to the total revenue earned. Break Even Analysis determines the number of units to be sold to earn the revenue required to cover the total costs. Total cost is a sum total of fixed and variable costs.
Process analysis
The term process analysis can be defined as breakdown of production process into different phases that converts inputs into output. A series of routine activities are incorporated using organizational resources with a view to achieve operational excellence.
Describe the theory of Constraints?
The Theory of Constraints is a technique for determining the most relevant constraint that is in the path of reaching a target and then strengthening the restriction progressively so that it is no longer the major bottleneck. The restriction is also referred to in manufacturing as a bottleneck. A scientific approach to change is taken from the Theory of Constraints. It implies that any complicated framework consists of numerous connected operations, like development processes, one of which functions as a limitation on the overall network.
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