Good Example Of Report On Definitions

Type of paper: Report

Topic: Children, System, Theory, Management, Inventory, Family, Production, Kid

Pages: 2

Words: 550

Published: 2021/03/21

Analysis of The Goal

The theory of constraints has three variations; inventory, throughput and the operation expense. Inventory is applied to explain the money, which the system has utilized to purchase the materials that it wants to sell (Lang 87). The operational expenses involve the finances used by the system to transform the inventory to the throughput. Throughput involves the rate that the system applies in generating money by sales. The three variations operate in an interlinked manner, because one variable has the ability of influencing the other variable. The variations have different meanings to the traditional definitions. This is because the meanings illustrated in the novel are mainly in monetary form, while the understanding in traditional form encompasses diverse issues like materials and technology. The three variations are very useful in the business processes. This is because they illustrate how business organizations conduct their operations and transactions (Goldratt & Cox 13).

Real Life Example

The statistical fluctuations and the dependent events are adequately analyzed in terms of the example on the marching scouts. One real life example involves marching kids. The children are described as marching in one queue and along a straight line. The leader is usually at the front of the queue, and the other children mainly follow from behind. The main aim of the march is to move the children from one point to another. No kid is allowed to overtake another, thus the marching speed of one child cannot be greater than the child immediately in front. If the slowest kid marches at a slower rate than the child in front, the space between them increases. The children behind the slowest kid are therefore limited in marching speed. The slowest child illustrates bottlenecks existing in the line of production (Robert 212).

Production Scheduling Principles

Several principles are discussed in The Goal. One principle involves processes as chains. If the production processes operate as chains, then it is very easy to locate the weak links. The linkages mainly connect several organizations along the supply chain. The total system impact is another principle. The entire organizations comprise interdependent activities with different variability categories. To improve performance, the management must address the general system impact (Goldratt & Cox 15). The physical versus policy constraints illustrate another principle. Majority of constraints within the systems are due to the policies, and not physical causes. Policy constraints include attitudes or behaviors. Cause and effect principle explains that production is based on one event resulting to the other related events. Cause and effect significantly leads to the optimization of the system performance.
The theory of constraints has pitfalls in relation to utilizing the accounting practices in coming up with the manufacturing decisions. It does not operate effectively with the normal accounting systems, which greatly focuses on the cost absorption, and also the standard cost variance analysis. There are several reasons for this; for instance, developing the inventories to get overhead is a foreign concept within the theory of constraints (Lang 91). In the traditional cost management, the mangers mainly concentrate on minimizing unit costs. Other managers may also place emphasis on reducing the operating expenses and the inventory investments. The managers, therefore, minimally concentrate on the improvement of the throughput and the output. The theory of constraints supporters illustrate that this worrisome issue is based on the management accounting system, in addition to the increased attention to the unit costs and also allocations.

Works Cited

Eliyahu, Goldratt & Jeff, Cox. The Goal. MA: North River Press. 2004. Print.
Lisa, Lang. Achieving a Viable Vision: The Theory of Constraints Strategic Approach to Rapid Sustainable Growth. NY: Throughput Publishing, Inc. 2013. Print.
Stein, Robert. The Theory of Constraints. NY: Marcel Dekker.

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Good Example Of Report On Definitions. Free Essay Examples - Published Mar 21, 2021. Accessed April 13, 2024.

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