The theory of constraints is a method for bringing about continuous improvement (the five TOC steps are a continuous improvement loop). In effect, TOC addresses three questions: (1) what to change, (2) what to change to, and (3) how to cause the change. The answers to these questions have to do with what is called the "Thinking Process." Six specific thinking process tools are suggested: the current reality tree, the evaporative cloud, the future reality tree, the negative branches, the pre- requisite tree, and the transition tree. Supporters of TOC claim that the method can bring about significant improvements in lead time, inventory, and financial perfor- mance. Furthermore, some advocate changing to what is called "constraint account- ing." These issues create some significant opportunities for TOC-related Internet research.

Required

1. Search the Internet, and find definitions of the thinking process and the indicated thinking process tools.

2. Search the Internet, and find examples of three companies that have successfully used the theory of constraints. List some of the benefits achieved by these companies. Is TOC more than an inventory management method?

3. Search the Internet, and find information on constraint accounting. What is constraint accounting? Is it an alternative to activity- and functional-based accounting? Explain.