Throughput Accounting

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August 11, 2017 at 8:38 am #401446
zainmansoor528
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In Theory Of Constraints there are some steps to deal with constraints
Step 1:Identify the system Bottlenecks
Step 2:Decide how to exploit the system bottlenecks
Step 3:Subordinate everything else
to the decisions made in Step 2
Please explain the Step 3..What does it mean??
August 11, 2017 at 5:16 pm #401521
John Moffat
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It just means that having identified the bottleneck process, you make the decisions about which products to produce based on the bottleneck (and effectively ignore the other processes).
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