Q1. What is the primary goal of most manufacturing companies as per TOC?
A. Customer satisfaction
B. Zero defects
C. Profit in short and long term
D. Global expansion
✅ Answer: C. Profit in short and long term
Q2. What does TOC stand for?
A. Tools of Control
B. Theory of Chains
C. Theory of Constraints
D. Total Organizational Control
✅ Answer: C. Theory of Constraints
Q3. Who introduced the Theory of Constraints to a wide audience?
A. Peter Drucker
B. Michael Porter
C. Dr. Eliyahu Goldratt
D. Henry Ford
✅ Answer: C. Dr. Eliyahu Goldratt
Q4. What is the title of Goldratt’s bestselling novel that popularized TOC?
A. The Factory
B. The Goal
C. The Process
D. The Machine
✅ Answer: B. The Goal
Q5. What is the 'constraint' in TOC commonly referred to in manufacturing?
A. Deadlock
B. Delay
C. Bottleneck
D. Redundancy
✅ Answer: C. Bottleneck
Q6. According to TOC, what should improvement efforts focus on?
A. Every part equally
B. The constraint
C. Labor optimization
D. Financial audits
✅ Answer: B. The constraint
Q7. What are the Five Focusing Steps in TOC meant for?
A. Increasing workforce
B. Identifying and eliminating constraints
C. Reducing costs
D. Improving customer service
✅ Answer: B. Identifying and eliminating constraints
Q8. What is 'Throughput Accounting' in TOC?
A. A tax strategy
B. A method for cost cutting
C. A performance measurement and decision-making tool
D. An HR payroll system
✅ Answer: C. A performance measurement and decision-making tool
Q9. Which of the following is NOT a stated benefit of implementing TOC?
A. Increased profit
B. Longer lead times
C. Reduced inventory
D. Improved capacity
✅ Answer: B. Longer lead times
Q10. What does TOC consider the weakest link in a process chain?
A. The non-value-added task
B. The constraint
C. The operator
D. The machinery
✅ Answer: B. The constraint
Q11. What key value does TOC place on improvement efforts?
A. Volume
B. Focus
C. Diversity
D. Technology
✅ Answer: B. Focus
Q12. What happens after improving the current constraint according to TOC?
A. Stop further improvement
B. Focus moves to the next constraint
C. Revert to traditional methods
D. Eliminate all processes
✅ Answer: B. Focus moves to the next constraint
Q13. What happens if companies focus on non-constraints?
A. High profits
B. Operational excellence
C. Little to no benefit
D. Faster delivery
✅ Answer: C. Little to no benefit
Q14. Which of the following is NOT part of the TOC toolkit?
A. Throughput Accounting
B. Just-in-Time inventory
C. Thinking Processes
D. Five Focusing Steps
✅ Answer: B. Just-in-Time inventory
Q15. Which term best describes TOC’s approach to improvement?
A. Reactive
B. Scientific
C. Random
D. Emotional
✅ Answer: B. Scientific
Q16. What does the constraint determine in a system?
A. Quality levels
B. Market share
C. Maximum throughput
D. Employee satisfaction
✅ Answer: C. Maximum throughput
Q17. What is a direct result of optimizing the constraint?
A. Increased WIP
B. Higher prices
C. Reduced lead time
D. More complexity
✅ Answer: C. Reduced lead time
Q18. What does TOC recommend doing once a constraint is no longer a bottleneck?
A. Celebrate success
B. Recheck all departments
C. Find the next constraint
D. Increase inventory
✅ Answer: C. Find the next constraint
Q19. What is one of the most appealing features of TOC?
A. Use of high-tech tools
B. Prioritization of the most urgent constraint
C. Customer interviews
D. Free software
✅ Answer: B. Prioritization of the most urgent constraint
Q20. How does TOC differ from traditional improvement methods?
A. It avoids use of data
B. It improves everything at once
C. It focuses on the weakest link
D. It replaces all processes
✅ Answer: C. It focuses on the weakest link
Q21. What does TOC primarily aim to improve in a system?
A. Departmental harmony
B. Throughput
C. Employee satisfaction
D. Supplier relationships
✅ Answer: B. Throughput
Q22. What does Goldratt consider the essence of TOC?
A. Automation
B. Workforce motivation
C. Focus
D. Budget control
✅ Answer: C. Focus
Q23. What should happen if the current constraint is optimized?
A. Operations should halt
B. Re-focus on a new constraint
C. Ignore future improvements
D. Increase investment in marketing
✅ Answer: B. Re-focus on a new constraint
Q24. What kind of approach does TOC take to systems improvement?
A. Philosophical
B. Scientific
C. Legal
D. Creative
✅ Answer: B. Scientific
Q25. What does TOC consider every process to have?
A. Redundancy
B. A constraint
C. A manager
D. A variable cost
✅ Answer: B. A constraint
Q26. What is the key measure TOC focuses on to guide management decisions?
A. ROI
B. Revenue
C. Throughput
D. Market share
✅ Answer: C. Throughput
Q27. Which step is NOT part of the Five Focusing Steps?
A. Identify the constraint
B. Exploit the constraint
C. Elevate the constraint
D. Standardize quality
✅ Answer: D. Standardize quality
Q28. What does "exploiting the constraint" mean in TOC?
A. Outsourcing it
B. Reducing its cost
C. Making the most of its existing capacity
D. Ignoring it
✅ Answer: C. Making the most of its existing capacity
Q29. Which TOC principle reduces work-in-process (WIP)?
A. Inventory optimization
B. Constraint optimization
C. Flexible scheduling
D. Marketing campaigns
✅ Answer: B. Constraint optimization
Q30. In TOC, what is the final step after elevating the constraint?
A. Increase quality
B. Return to step one
C. Decrease training
D. Eliminate customer complaints
✅ Answer: B. Return to step one
Q31. What does TOC use to analyze and resolve problems?
A. Brainstorming
B. Thinking Processes
C. SWOT Analysis
D. Fishbone Diagram
✅ Answer: B. Thinking Processes
Q32. What is a key benefit of focusing on a single constraint at a time?
A. Quick wins
B. Easier hiring
C. Better branding
D. Lower customer churn
✅ Answer: A. Quick wins
Q33. What happens if an organization ignores the constraint?
A. The system may still improve
B. Profits will increase
C. Bottlenecks will persist
D. Processes will become lean
✅ Answer: C. Bottlenecks will persist
Q34. Which area is typically NOT considered a constraint in TOC?
A. Machines
B. Policies
C. Market demand
D. Brand logo
✅ Answer: D. Brand logo
Q35. What is the result of reducing inventory via TOC?
A. Increased WIP
B. Slower throughput
C. Smoother flow
D. Higher transportation costs
✅ Answer: C. Smoother flow
Q36. What type of accounting does TOC recommend over traditional cost accounting?
A. Lean accounting
B. Throughput Accounting
C. Activity-Based Costing
D. Fixed Cost Accounting
✅ Answer: B. Throughput Accounting
Q37. Which of the following best describes the goal of TOC?
A. Total quality improvement
B. Constraint elimination
C. Sustained profitability through constraint focus
D. Employee involvement in all processes
✅ Answer: C. Sustained profitability through constraint focus
Q38. TOC is based on the premise that systems are:
A. Random
B. Unrelated
C. Linked activities
D. Decentralized
✅ Answer: C. Linked activities
Q39. What is the weakest link in the TOC analogy of a chain?
A. The manager
B. The employee
C. The constraint
D. The product
✅ Answer: C. The constraint
Q40. Which of the following best reflects TOC’s philosophy?
A. Focus on lowest cost
B. Focus on average output
C. Focus on the constraint
D. Focus on external benchmarking
✅ Answer: C. Focus on the constraint
Q41. In TOC, why is it inefficient to optimize non-constraints?
A. They change too often
B. They are already optimized
C. They don't significantly improve overall throughput
D. They are hard to identify
✅ Answer: C. They don't significantly improve overall throughput
Q42. What happens to system output when the constraint is improved?
A. Output decreases
B. Output remains the same
C. Output increases
D. Output becomes unstable
✅ Answer: C. Output increases
Q43. What mindset does TOC encourage for managing improvement?
A. Blanket optimization
B. Targeted focus
C. Strategic outsourcing
D. Cost-cutting
✅ Answer: B. Targeted focus
Q44. What type of systems does TOC apply to?
A. Only mechanical systems
B. Only software systems
C. Only HR systems
D. Any complex system with linked activities
✅ Answer: D. Any complex system with linked activities
Q45. What does reducing lead time help improve according to TOC?
A. Recruitment
B. Supplier dependency
C. Customer satisfaction
D. Marketing budgets
✅ Answer: C. Customer satisfaction
Q46. What is the first of the Five Focusing Steps in TOC?
A. Elevate the constraint
B. Subordinate everything else
C. Identify the constraint
D. Exploit the constraint
✅ Answer: C. Identify the constraint
Q47. What is the second step in the Five Focusing Steps?
A. Exploit the constraint
B. Ignore the constraint
C. Automate the process
D. Increase raw materials
✅ Answer: A. Exploit the constraint
Q48. What is the third step in the Five Focusing Steps?
A. Improve customer reviews
B. Subordinate other processes
C. Invest in branding
D. Hire more staff
✅ Answer: B. Subordinate other processes
Q49. What is the fourth step in the Five Focusing Steps?
A. Elevate the constraint
B. Abandon the process
C. Optimize raw material
D. Cut marketing spend
✅ Answer: A. Elevate the constraint
Q50. What is the final (fifth) step in the Five Focusing Steps?
A. Restart with a new product
B. Repeat the process
C. Ignore new constraints
D. Focus on human resources
✅ Answer: B. Repeat the process
Q51. What should TOC ideally reduce along with bottlenecks?
A. Employee morale
B. Lead times
C. Product lines
D. Advertising
✅ Answer: B. Lead times
Q52. What kind of results does TOC aim for?
A. Average improvements
B. Slow and steady growth
C. Rapid, focused improvement
D. Product redesign
✅ Answer: C. Rapid, focused improvement
Q53. Which TOC tool helps with resolving conflicts and designing solutions?
A. Bottleneck diagram
B. Control chart
C. Thinking Processes
D. SIPOC analysis
✅ Answer: C. Thinking Processes
Q54. Why is TOC considered a practical methodology?
A. It ignores data
B. It’s based on rules of thumb
C. It uses focused, systematic steps
D. It favors intuition
✅ Answer: C. It uses focused, systematic steps
Q55. Why did Goldratt write “The Goal”?
A. To propose cost reduction methods
B. To describe Just-in-Time
C. To communicate TOC concepts via a story
D. To outline TQM frameworks
✅ Answer: C. To communicate TOC concepts via a story
Q56. What happens if improvement is attempted on multiple non-constraints at once?
A. Great success
B. No change in throughput
C. Improved focus
D. Better team morale
✅ Answer: B. No change in throughput
Q57. Which of the following best demonstrates a TOC bottleneck?
A. An over-performing department
B. A frequently idle resource
C. A step where work consistently piles up
D. A team with flexible shifts
✅ Answer: C. A step where work consistently piles up
Q58. What is the relationship between constraint optimization and capacity?
A. No relationship
B. It increases available capacity
C. It decreases efficiency
D. It removes human dependency
✅ Answer: B. It increases available capacity
Q59. In TOC, what is a system's 'throughput'?
A. Total expenses
B. Output after subtracting raw material cost
C. Total inventory on hand
D. Profit per employee
✅ Answer: B. Output after subtracting raw material cost
Q60. Which of the following best captures TOC’s philosophy in one word?
A. Cost
B. Control
C. Focus
D. Quantity
✅ Answer: C. Focus
Q61. What is a common misconception in operations that TOC challenges?
A. More inventory means higher profits
B. All departments should be improved equally
C. Bottlenecks are inevitable and unchangeable
D. Profit cannot be measured
✅ Answer: B. All departments should be improved equally
Q62. According to TOC, what determines the pace of production in a system?
A. Supplier delivery time
B. Marketing success
C. The system’s constraint
D. Number of workers
✅ Answer: C. The system’s constraint
Q63. What is the role of “subordination” in TOC?
A. Prioritize all processes equally
B. Align all other processes to support the constraint
C. Outsource the constraint
D. Reduce overhead costs
✅ Answer: B. Align all other processes to support the constraint
Q64. What should happen before elevating the constraint?
A. Analyze profits
B. Maximize exploitation of the existing constraint
C. Hire new staff
D. Conduct training sessions
✅ Answer: B. Maximize exploitation of the existing constraint
Q65. What would be a real-world example of a constraint in a bakery?
A. Type of packaging used
B. Speed of dough-mixing machine
C. Number of parking spots
D. Brand of flour
✅ Answer: B. Speed of dough-mixing machine
Q66. In TOC, how are decisions typically made?
A. Based on intuition
B. Based on traditional cost accounting
C. Based on impact on throughput
D. Based on employee votes
✅ Answer: C. Based on impact on throughput
Q67. What aspect of performance does Throughput Accounting primarily measure?
A. Fixed cost per unit
B. Labor cost
C. System profitability through throughput
D. Gross margin
✅ Answer: C. System profitability through throughput
Q68. Why does TOC discourage high inventory levels?
A. Inventory boosts employee stress
B. Inventory is considered a liability
C. Inventory prevents team collaboration
D. Inventory hides the constraint
✅ Answer: D. Inventory hides the constraint
Q69. In TOC, a constraint can also be a:
A. Policy or outdated rule
B. Brand identity
C. Software update
D. Office furniture
✅ Answer: A. Policy or outdated rule
Q70. What is the recommended time focus for TOC improvements?
A. Long-term only
B. Short-term only
C. Both short and long-term
D. Financial quarter
✅ Answer: C. Both short and long-term
Q71. What is the main financial goal TOC aims to achieve?
A. Revenue growth
B. Tax minimization
C. Profitability
D. Cash reserve buildup
✅ Answer: C. Profitability
Q72. Why is TOC considered “highly focused”?
A. It automates all systems
B. It eliminates employees
C. It targets one constraint at a time
D. It operates using AI
✅ Answer: C. It targets one constraint at a time
Q73. What metric does TOC prioritize over cost per unit?
A. Break-even point
B. Efficiency rate
C. Throughput contribution
D. Cost variance
✅ Answer: C. Throughput contribution
Q74. What does “elevate the constraint” mean?
A. Ignore the constraint
B. Outsource the constraint
C. Increase the constraint’s capacity
D. Add new branding
✅ Answer: C. Increase the constraint’s capacity
Q75. TOC suggests stopping improvement when:
A. All processes are automated
B. Constraint has no impact on throughput
C. Customer satisfaction is 100%
D. There’s no more budget
✅ Answer: B. Constraint has no impact on throughput
Q76. The metaphor “a chain is only as strong as its weakest link” is used to explain:
A. Customer loyalty
B. HR decisions
C. The constraint’s impact
D. Environmental sustainability
✅ Answer: C. The constraint’s impact
Q77. Which of the following is least likely to be a system constraint?
A. Machine capacity
B. Sales demand
C. Government regulations
D. Company logo design
✅ Answer: D. Company logo design
Q78. How does TOC improve delivery reliability?
A. By increasing safety stock
B. By reducing staff
C. By eliminating constraints
D. By shifting warehouses
✅ Answer: C. By eliminating constraints
Q79. Which is a true statement about TOC?
A. It recommends fixing all processes at once
B. It requires major technology upgrades
C. It identifies and focuses on the most limiting factor
D. It only works for small businesses
✅ Answer: C. It identifies and focuses on the most limiting factor
Q80. Why does TOC work well in urgent improvement situations?
A. It relies on motivational programs
B. It provides high-level automation
C. It directs focus to the most impactful area
D. It reduces product lines
✅ Answer: C. It directs focus to the most impactful area
Q81. What is often the result of improving a non-constraint?
A. Reduced lead time
B. Increased throughput
C. Minimal to no system improvement
D. Immediate financial gain
✅ Answer: C. Minimal to no system improvement
Q82. What can be a hidden constraint in many organizations?
A. Poor logo
B. Outdated policy
C. Large office space
D. New employee
✅ Answer: B. Outdated policy
Q83. Which best describes TOC's approach to productivity?
A. Manage employee behavior
B. Maximize machine usage
C. Maximize throughput by improving the constraint
D. Improve marketing efforts
✅ Answer: C. Maximize throughput by improving the constraint
Q84. What does TOC say about spending time on non-constraints?
A. It is encouraged
B. It is mandatory
C. It is wasteful
D. It is optional
✅ Answer: C. It is wasteful
Q85. What is the TOC term for intermediate products being held up due to constraints?
A. Inventory
B. Overhead
C. Bottleneck
D. Work-in-process
✅ Answer: D. Work-in-process
Q86. A successful TOC implementation leads to:
A. Increased inventory
B. Slower change
C. Faster delivery and improved profit
D. More training
✅ Answer: C. Faster delivery and improved profit
Q87. What kind of thinking does TOC discourage in decision-making?
A. Systems thinking
B. Local optimization
C. Profit-focused thinking
D. Strategic thinking
✅ Answer: B. Local optimization
Q88. TOC assumes that most systems:
A. Are perfectly efficient
B. Have no flaws
C. Contain one or more constraints
D. Are not measurable
✅ Answer: C. Contain one or more constraints
Q89. What type of flow does TOC aim to improve?
A. Cash flow
B. Marketing flow
C. Product or process flow
D. Organizational culture flow
✅ Answer: C. Product or process flow
Q90. What result is most commonly linked with removing a system bottleneck?
A. Lower product prices
B. Improved throughput
C. Increased advertising costs
D. Longer employee hours
✅ Answer: B. Improved throughput
Q91. What is the effect of aligning the organization around the constraint?
A. Reduced collaboration
B. Faster decision-making and better results
C. Increased complexity
D. More confusion
✅ Answer: B. Faster decision-making and better results
Q92. What is one reason TOC avoids traditional cost accounting?
A. It doesn’t track time
B. It lacks real-time data
C. It can lead to wrong decisions about constraints
D. It’s too easy to apply
✅ Answer: C. It can lead to wrong decisions about constraints
Q93. What does TOC recommend doing when a constraint cannot be elevated?
A. Close the operation
B. Sell the business
C. Revisit subordination and exploitation steps
D. Outsource it permanently
✅ Answer: C. Revisit subordination and exploitation steps
Q94. In TOC, what should every improvement be judged against?
A. Cost per unit
B. Marketing ROI
C. Whether it increases throughput
D. Whether it reduces meetings
✅ Answer: C. Whether it increases throughput
Q95. What is a "non-physical constraint" in TOC?
A. Inventory problem
B. Customer complaint
C. Policy or measurement system
D. Machine breakdown
✅ Answer: C. Policy or measurement system
Q96. How should a company view the constraint according to TOC?
A. As a weakness to eliminate
B. As an opportunity for growth
C. As a long-term failure
D. As an unavoidable cost
✅ Answer: B. As an opportunity for growth
Q97. Which is NOT one of the Five Focusing Steps in TOC?
A. Identify the constraint
B. Exploit the constraint
C. Subordinate everything else
D. Develop the team
✅ Answer: D. Develop the team
Q98. What best describes TOC's impact on WIP (Work in Progress)?
A. Increases it for safety
B. Keeps it constant
C. Reduces it by removing bottlenecks
D. Has no effect
✅ Answer: C. Reduces it by removing bottlenecks
Q99. How does TOC ensure sustainability in improvement?
A. By automating decisions
B. By focusing only on cost
C. By repeating the cycle with new constraints
D. By hiring consultants
✅ Answer: C. By repeating the cycle with new constraints
Q100. Why does TOC recommend NOT optimizing everything at once?
A. It costs more
B. It distracts from the real issue
C. It requires approval
D. It’s against lean principles
✅ Answer: B. It distracts from the real issue
Q101. Which of the following is an indirect benefit of applying TOC?
A. Greater product variety
B. Better teamwork through shared goals
C. Higher packaging costs
D. More accounting reports
✅ Answer: B. Better teamwork through shared goals
Q102. What might TOC reveal about traditional performance metrics?
A. They are always accurate
B. They directly align with throughput
C. They may hide true constraints
D. They improve innovation
✅ Answer: C. They may hide true constraints
Q103. In TOC, what does it mean to subordinate other processes?
A. Shut down processes not needed
B. Delay other processes until constraint is optimized
C. Make other processes work at full speed
D. Allocate new budgets to other teams
✅ Answer: B. Delay other processes until constraint is optimized
Q104. What kind of improvement does TOC consider valuable?
A. Improvements that increase individual productivity
B. Improvements that reduce salary cost
C. Improvements that enhance throughput
D. Improvements that improve design
✅ Answer: C. Improvements that enhance throughput
Q105. Which one is most consistent with TOC’s goal alignment principle?
A. All departments chase their own KPIs
B. Every function aligns to improve throughput
C. Finance leads all improvement programs
D. Sales decides on capacity allocation
✅ Answer: B. Every function aligns to improve throughput
Q106. What is an essential part of TOC’s Thinking Processes?
A. Process control charts
B. Current Reality Tree
C. Employee of the Month program
D. Brand perception index
✅ Answer: B. Current Reality Tree
Q107. In TOC, increasing local efficiency may cause:
A. Improved throughput
B. Constraint elimination
C. Excess inventory and poor flow
D. Lower employee morale
✅ Answer: C. Excess inventory and poor flow
Q108. What is the first reaction TOC recommends after identifying a constraint?
A. Hire new staff
B. Improve product packaging
C. Exploit the constraint
D. Automate the process
✅ Answer: C. Exploit the constraint
Q109. What happens when organizations chase cost efficiency without constraint focus?
A. Throughput improves
B. Profitability drops
C. Inventory disappears
D. Teams become cross-functional
✅ Answer: B. Profitability drops
Q110. What key insight does TOC provide about system performance?
A. It depends on management style
B. It improves with more product lines
C. It is limited by one key constraint
D. It fluctuates randomly
✅ Answer: C. It is limited by one key constraint
Q111. What does TOC say about using KPIs for every process?
A. It ensures transparency
B. It enhances motivation
C. It can mislead focus if not linked to throughput
D. It is necessary for Lean
✅ Answer: C. It can mislead focus if not linked to throughput
Q112. TOC works best when:
A. All teams work in isolation
B. Processes are automated
C. Teams align around the system goal
D. Focus is only on external constraints
✅ Answer: C. Teams align around the system goal
Q113. How does TOC treat cost-cutting efforts?
A. As primary focus
B. As secondary to improving throughput
C. As a constraint itself
D. As Lean-compatible
✅ Answer: B. As secondary to improving throughput
Q114. What is an example of elevating a constraint?
A. Buying a faster machine
B. Moving the department
C. Sending emails
D. Increasing holidays
✅ Answer: A. Buying a faster machine
Q115. What’s the relationship between TOC and customer satisfaction?
A. No relation
B. Indirect improvement through better flow
C. Depends on product pricing
D. It worsens due to reduced variety
✅ Answer: B. Indirect improvement through better flow
Q116. Which one of the following could be the goal in TOC?
A. Increasing employee count
B. Reducing audit frequency
C. Making more money now and in the future
D. Reducing the number of meetings
✅ Answer: C. Making more money now and in the future
Q117. According to TOC, what leads to fast improvement?
A. Training all staff
B. Reducing salary cost
C. Focusing on one critical constraint
D. Outsourcing marketing
✅ Answer: C. Focusing on one critical constraint
Q118. What should be the company’s action if constraint shifts elsewhere?
A. Stop optimizing
B. Fire extra staff
C. Repeat the Five Focusing Steps
D. Rethink the product entirely
✅ Answer: C. Repeat the Five Focusing Steps
Q119. TOC is primarily about improving:
A. Innovation speed
B. Throughput of the system
C. Employee engagement
D. Supplier quality
✅ Answer: B. Throughput of the system
Q120. Which of the following TOC practices helps reduce unnecessary costs?
A. Outsourcing design
B. Minimizing employee raises
C. Eliminating waste caused by bottlenecks
D. Hiring more accountants
✅ Answer: C. Eliminating waste caused by bottlenecks
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