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1) What makes a constraint critical or active? Explain.
2) Jim has used the theory of constraints to maximize the production of his active constraints and match the production rate in the rest of his facility to the bottlenecks. Output of finished goods per week has improved by 15% and WIP across the facility has decreased 40%. But his efficiencies on some individual workstations have dropped by 50% and the boss feels that this is cutting into already slim profit margins. What is going on? What should he do?
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Traditional Accounting Based Measurements and Their Limitations Neely (1999) suggests that traditional financial measures of performance are criticised because they:
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