Increasing Throughput — Other Considerations

Continuing our cash velocity discussion started on March 16, 2007 Increasing Throughput — Other Considerations In previous sections we have covered raw materials and how to reduce them. We also need to cover WIP (Work In Process) and finished goods inventory....

Increase Throughput to Increase Cash Velocity

Continuing our cash velocity discussion … 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) increasing...

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