by Dr Lisa | Brad Stillahn, Dr Lisa Lang, eli goldratt, the goal, the haystack syndrome, theory of constraints, theory of constraints measures, throughput accounting
We are continuing our series based on The Goal by Eliyahu M Goldratt and the Theory of Constraints. {This series was co-written with Brad Stillahn.} If we can compute the impact of any action using T, I, and OE, which are global measures (and part of Throughput...
by Dr Lisa | Brad Stillahn, cost accounting, DBR, Dr Lisa Lang, eliyahu m goldratt, gaap, mafia offer, theory of constraints
What is the effect on the monthly Profit and Loss statement from this? Because cost accounting (and GAAP) requires that inventory absorb allocated costs, the effect is that all of the cost allocations from prior months that are attached to the inventory will be...
by Dr Lisa | Brad Stillahn, cost accounting, Dr Lisa Lang, drum buffer rope, eliyahu m goldratt, the goal eliyahu m goldratt, theory of constraints, throughput accounting
“Cost Accounting: Public Enemy #1 of Productivity” Way back in 1983, prior to writing his popular business novel “The Goal”, Dr. Eliyahu M Goldratt gave a speech by this controversial and confrontational title at a conference of Management Accountants. However, it was...
by Dr Lisa | Brad Stillahn, Dr Lisa Lang, drum buffer rope, eli goldratt, lean, six sigma, theory of constraints, throughput accounting, TOC
Normally, Lean and Six Sigma tools provide additional benefits very quickly. For example, it is common that the constraint resource could benefit from set-up reduction. Focusing Lean tools—which cost little to implement—results in additional capacity where it is...
by Dr Lisa | Brad Stillahn, herbie, the goal, theory of constraints, theory of constraints results
{This series was co-written with Brad Stillahn.} Do you remember Herbie from the book “The Goal”? He was the slowest Boy Scout on the hike. The hike was taking much longer than expected, and the only way the troop could finish the hike sooner was to find a way to make...
