by Dr Lisa | Theory of Constraints Finance, Accounting, and Cash Flow, Theory of Constraints Sales
Increase Sales Increasing sales is a sure fire way to increase your throughput and is theoretically limitless. My first question is: Are you selling all that you can now? If you are a “make to stock” company, do you ever have the case where you don’t have the product...
by Dr Lisa | Theory of Constraints Finance, Accounting, and Cash Flow
Increase Selling Prices Changing the selling price for a product or group of products is difficult to cover in few words. Presumably you already have pricing policies and strategy that represent some equilibrium point in the market you serve and getting some minimum...
by Dr Lisa | Theory of Constraints Finance, Accounting, and Cash Flow
Continuing our cash velocity discussion… Deceasing sales commission is not necessarily where we want to focus either, but make sure that the commission you’re paying is in alignment with where you’re making your money and/or with the products/services with the...
by Dr Lisa | Theory of Constraints Finance, Accounting, and Cash Flow
Continuing our cash velocity discussion, let talk about Increasing Throughput. Throughput (as defined in Goldratt’s Theory of Constraints Throughput Accounting) is sales revenue minus truly variable costs. Therefore we can increase your throughput by either 1)...
by Dr Lisa | Theory of Constraints Finance, Accounting, and Cash Flow
Continuing our cash velocity discussion started on March 16, 2007Yesterday we discussed how offering a discount can reduce cash to cash cycle time and today we will discuss an alternative.Another approach, which leads to similar results is receivables factoring....
