by Dr Lisa | cash flow, cash to cash cycle time, cash velocity, Dr Lisa Lang, goldratt, increase throughput, maximizing cash flow, maximizing profitability, theory of constraints
Continuing our cash velocity discussion started on March 16, 2007 Cash Velocity Summary There are two cash velocity rules: ● Make sure that the amount and rate of cash flowing in is enough to cover all your business and personal needs ● Be paranoid. Unfortunately,... by Dr Lisa | cash to cash cycle time, cash velocity, DBR, demand pull, Dr Lisa Lang, drum buffer rope, eli goldratt, eliyahu m goldratt, goldratt, increase throughput, theory of constraints
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.... by Dr Lisa | cash to cash cycle time, cash velocity, Dr Lisa Lang, increase sales, increase throughput, theory of constraints, throughput per constraint unit
Continuing our cash velocity discussion started on March 16, 2007 Increase Sales cont. Last time we ended our discussion with this question: So how do you increase your throughput without going into cash trouble? The first step is to examine your product mix.... by Dr Lisa | cash velocity, DBR, demand pull, Dr Lisa Lang, increase sales, increase throughput, mafia offer, mafia offers, make to stock, market segmentation, theory of constraints
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”... by Dr Lisa | cash velocity, Dr Lisa Lang, goldratt, sales commission, throughput, throughput accounting, throughput per constraint unit
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 | cash velocity, Dr Lisa, Dr Lisa Lang, eli goldratt, eliyahu m goldratt, goldratt, maximizing profitability, reduce costs, theory of constraints, throughput, throughput accounting
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...
