Cash to Cash Cycle Time The components of your cash-to-cash cycle time depends on your business but generally includes procurement, raw materials inventory, production, finished goods inventory, logistics, and your accounts receivable. To reduce cash-to-cash cycle...
I'm currently working on a book "Increasing Cash Velocity". Goldratt doesn't cover cash flow and it's not even included under the topic of Throughput Accounting. It is however, one of the most important topics for business owners. 80% of the businesses started with...
This is the eighth conversation in our Maximizing Profitability the Theory of Constraints (TOC) Way series. To read number 7, go here: https://www.scienceofbusiness.com/maxprofit7/ Brad: “Theory of Constraints (TOC) is unique with its emphasis on Throughput, the...
Download Slides: TOCICO Webinar This TOCICO webinar explores the problems of Cost Accounting and why you should not use it. Then the Throughput Accounting - T, I and OE solution for both global measurements and decision making is presented. Presenters: Dr. Lisa Lang...
The Fastest Way to Increase Cash Flow using Theory of Constraints and Throughput Accounting This week I have a new video for you. This video was taken during the TOCICO conference in Tacoma and this is the first time I'm making it available. Many of you listed...
Dr. Lisa: Each employee has a life outside his or her job in a business. They have family, financial and other pressures. Time off is sometimes needed. Brad: Of course, but business owners have to run the business to satisfy their customers, as well as make enough...
Brad: Next, we have a choice. Most business owners have a desire to transfer the business to one or more "insiders", but the business may be worth more and the business owner would make more money sooner if the business was sold to a third party. So, it's helpful to...
Dr. Lisa: Let me start. We established in our last article that Exit Planning is consistent with Theory of Constraints, Lean and Six Sigma because business owners need processes that will increase profitability and business value. So now, let's help business owners...
Dr. Lisa: What’s the impact of the economy on exit planning? If sales are down due to a depressed economy, how does that impact exit planning? Brad: Unless the business managed to maintain its sales and profit levels and growth rates, the business is probably less...
Brad: Who cares? Is this really that important? In the last 20+ years since Throughput Accounting was invented to replace cost accounting, not very many business owners have even heard of it, much less felt a need to change. Dr. Lisa: True. Most just went out of...
