Theory of constraints and continuous improvement process vs just in time methodology (jit) and abc cost

Abstract

Currently, the main goal of every business that is based on a specific set of operating costs is interlacing each element thereof to generate large profits, and can only say that if something is really productive. This main objective is achieved somehow looking all the capabilities of the company can be aligned in a single production system, without neglecting the constraints that arise in such a system. By which must make the most of resources and have a minimum and adequate inventory turnover which is the goal of all systems costs. That is why in this article aims to compare the method used by almost all companies in the manufacturing sector, which is the Theory of Constraints to the applicability of Continuous Improvement Process for making decisions aimed at maximizing business profits in contrast to the implementation of the JIT (Just In Time) Methodology based on ABC Cost System, in which the characteristics of each are analyzed comparing with the throughput & puts out, and it was established by a case study as influencing a production system methodologies raised analyzing the pros and cons of each of these resulting from this comparison the great importance of inventory reduction in the production system, leading the company or organization to a state of production on a larger scale with good flow management inventories with best quality using methodology JIT and ABC cost, not ignoring the fact that the Theory of Constraints also generates benefits which are mentioned in Article. It should be noted that the methodology used in this formulation is Descriptive type character with correlational study, as it seeks to determine how two variables relate to each other to generate benefit to a specific phenomenon, where the goal is not simply to collect data but the benefits of identification and the relationships between these methodologies.