| Author: | Ruhl, J. |
| Title: | An introduction to the theory of constraints |
| Journal: | Journal of Cost Management
1996 : SUMMER, VOL. 10:2, p. 43-48 |
| Index terms: | THEORIES ACCOUNTING THEORY MANAGEMENT |
| Language: | eng |
| Abstract: | The theory of constraints (TOC) is a systems-management philosophy developed since the early 1980s. This article (the first in a two=part series) provides an introduction to TOC and to the concept of throughput accounting. The fundamental thesis of TOC is that constraints determine the performance of any system. Thus, managers should focus not on cutting costs but instead on managing the constraints in a system. A constraint is a resource that limits the throughput of an entire system. Constraints can be internal to the firm or external to it. |
SCIMA