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The use of theory of constraints (TOC) differs from traditional decision making because it:
Correct Answer: C
The Theory of Constraints (TOC) differs from traditional decision-making approaches by focusing more on timing rather than just cost when adjusting resources that limit business performance. Key points include: * Identification of Bottlenecks: TOC identifies and addresses the most critical bottlenecks that constrain the system's overall throughput. * Focus on Throughput: Emphasizing increasing throughput rather than just cost reduction ensures that the entire system's performance improves. * Timing and Synchronization: TOC places significant emphasis on the timing and synchronization of processes to ensure that bottlenecks are effectively managed and do not impede overall production flow. * Continuous Improvement: By continually identifying and addressing constraints, TOC fosters a culture of continuous improvement and operational efficiency. References: * Goldratt, E. M., & Cox, J. (2004). The Goal: A Process of Ongoing Improvement. North River Press. * Dettmer, H. W. (1997). Goldratt's Theory of Constraints: A Systems Approach to Continuous Improvement. ASQ Quality Press.