Certified Supply Chain Professional (CSCP) Practice Exam

Which of the following is NOT a goal of the five-step TOC process?

1. Maximizing output without major changes.

2. Minimizing costs associated with inventory.

3. Subordinating processes to operate at new speeds.

4. Continuously identifying new constraints.

The correct answer is: Minimizing costs associated with inventory.

The five-step Theory of Constraints (TOC) process focuses on improving organizational performance by identifying and managing constraints. One of the fundamental aspects of this process is that it encourages achieving optimal flow through the system rather than simply minimizing costs. Each of the steps in the TOC process aims to elevate throughput, reduce lead times, and optimize the entire system rather than concentrating solely on cost reduction. Minimizing costs associated with inventory might seem beneficial; however, it is not a direct goal of the five-step TOC process. Instead, the TOC emphasizes the importance of managing constraints effectively, which could sometimes involve maintaining certain levels of inventory to ensure that the system is functioning at its maximum efficiency. In TOC, the idea is to ensure that the entire system operates optimally, and focusing only on minimizing costs could detract from the overall goal of maximizing throughput and ensuring the continuous flow of value. The other goals in the TOC process, such as maximizing output without major changes, subordinating processes to operate at new speeds, and continuously identifying new constraints, directly aim at enhancing the productivity of the entire system by strategically changing the way processes operate in relation to the identified constraint.