Cost Management: A Strategic Emphasis 5th Edition by David Stout, Edward Blocher, Gary Cokins

Exercise 29

What does the term constraint mean in the theory of constraint analysis?

Step 1 of 6

Constraint basically means limiting factor. Company works on the ground which factor are in the way of achieving goals and all efforts are taken to reduce these constraint and help in obtaining the goal. So efforts are made to remove the constraints systematically, until it is no longer being a limiting factor. In the manufacturing industries this constraints is known as bottleneck. Company should made every efforts to eliminate the bottleneck or constraint in the production process or it may not be rigid for the longer period, otherwise have serious impact. As these constraints break the flow of the production and put the management about to rethink and to take corrective action.