According to the theory of constraints, a non-bottleneck is any resource where capacity is less than the demand placed on it.

According to the theory of constraints, a non-bottleneck is any resource where capacity is less than the demand placed on it.

Answer: False

According to the theory of constraints, a bottleneck is any resource whose capacity is greater than the demand placed on it.

According to the theory of constraints, a bottleneck is any resource whose capacity is greater than the demand placed on it.

Answer: False

According to the theory of constraints, it is wrong for manufacturers to try to match capacity with demand by attempting to balance capacity across a sequence of processes. Unbalanced capacity is better.

According to the theory of constraints, it is wrong for manufacturers to try to match capacity with demand by attempting to balance capacity across a sequence of processes. Unbalanced capacity is better.

Answer: True

According to the theory of constraints, the term "productivity" is defined as all those actions that bring a company closer to its goals.

According to the theory of constraints, the term "productivity" is defined as all those actions that bring a company closer to its goals.

Answer: True

Mr. Goldratt's "theory of constraints" is useful only in manufacturing settings.

Mr. Goldratt's "theory of constraints" is useful only in manufacturing settings.

Answer: False

From an operations standpoint, one of the goals of the firm under the theory of constraints is to increase throughput while simultaneously reducing inventory and reducing operating expense.

From an operations standpoint, one of the goals of the firm under the theory of constraints is to increase throughput while simultaneously reducing inventory and reducing operating expense.

Answer: True

The operational measure of throughput is "the rate at which money is generated by the system through production of goods and services that might be sold."

The operational measure of throughput is "the rate at which money is generated by the system through production of goods and services that might be sold."

Answer: False

Dr. Eli Goldratt feels that the goal of a firm is to make useful products efficiently.

Dr. Eli Goldratt feels that the goal of a firm is to make useful products efficiently.

Answer: False

Synchronous manufacturing refers to the entire production process working together in harmony to achieve the goals of the firm.

Synchronous manufacturing refers to the entire production process working together in harmony to achieve the goals of the firm.

Answer: True

OPT stands for optimal purchasing technique.

OPT stands for optimal purchasing technique.

Answer: False