Replying to LO26878 --
I would suggest that any system of cost centre budgeting and accounting
within an organisation represents an institutionalised TOC.
Another institutionalised form of TOC is paying sales staff a commission
on volume rather than on margin. In fact any form of individualised
commissions is a TOC for any organisation during periods when sales exceed
production capacity unless there is a countervailing process whereby
production can be directed towards the highest margin sales regardless of
the behaviour and expectations of sales staff.
Phillip Capper
WEB Research
PO Box 2855
(Level 9, 142 Featherston Street)
Wellington
New Zealand
Ph: (64) 4 499 8140
Fx: (64) 4 499 8395
--"Phillip Capper" <phillip.capper@webresearch.co.nz>
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