by Dr Lisa | POOGI Series, Theory of Constraints Finance, Accounting, and Cash Flow
If we can compute the impact of any action using T, I, and OE, which are global measures (and part of Throughput Accounting), then we can compute the bottom line financial impact quite easily: · Throughput minus Operating Expense equals Net Profit (T-OE=NP). ·... by Dr Lisa | POOGI Series, Theory of Constraints Finance, Accounting, and Cash Flow, Theory of Constraints Measures
To make managing a complex organization easier, we break organizations into pieces. Many of the current measurements have the purpose of measuring local performance, under the erroneous assumption that the overall performance of the organization will be maximized if... by Dr Lisa | POOGI Series, Theory of Constraints Finance, Accounting, and Cash Flow, Theory of Constraints Measures
Reliability To increase our reliablity, we need things to NOT go wrong. Dr. Goldratt proposed that there are just two categories of things that can go wrong – unreliability and ineffectiveness. These two things account for everything, and have no overlap.... by Dr Lisa | POOGI Series, Theory of Constraints Measures
Measurements (Not Incentives) “Tell me how you measure me, and I will tell you how I will behave. If you measure me in an illogical way…do not complain about illogical behavior”. This quote by Dr. Eli Goldratt, the father of the Theory of Constraints (TOC), speaks... by Dr Lisa | Theory of Constraint Books and Book Reviews
Q6 Dr Lisa: Are there some basic questions our clients can use to assess the “time span of discretion” for an individual? Tom: In his Time Span Handbook, Elliott Jaques outlines ten questions for a diagnostic interview. While most diagnostics, related to employment,... 
