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 — Increase Sales

Continuing our cash velocity discussion started on March 16, 2007 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”...

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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