Skip to content

ACCA Strategic Professional · Advanced Performance Management · Performance improvement models and techniques

Harbin Foods applies the Theory of Constraints. Management has identified the bottleneck as its packing line and has ensured it is never idle. Which action is the next step in the five focusing steps?

The next step is to subordinate everything else to the constraint, for example by scheduling upstream production to match the packing line's pace. This follows identifying and exploiting the bottleneck. Elevation, such as buying more capacity, comes afterwards, and then the process repeats.

  1. ASubordinate all other activities to the decisions made about the constraintCorrect
  2. BElevate the constraint by purchasing another packing line
  3. CIdentify a new constraint and repeat the process
  4. DReduce labour costs in non-bottleneck departments

Explanation

The five steps are identify, exploit, subordinate, elevate, repeat. Exploiting (keeping the packing line fully used) has been done, so subordinating other activities to the constraint comes next. Elevating comes only after subordination if the constraint remains.

Did you get it right without looking?

One question tells you little. A timed set on Performance improvement models and techniques shows your real accuracy, how long you take and where you lose marks.

Practise Performance improvement models and techniquesFree diagnostic mock

More Performance improvement models and techniques questions