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 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...
by Dr Lisa | cash to cash cycle time, DBR, drum buffer rope, factoring receivables, mafia offer, maximizing cash flow, maximizing profitability, receivables factoring
Continuing our cash velocity discussion started on March 16, 2007Yesterday we discussed how offering a discount can reduce cash to cash cycle time and today we will discuss an alternative.Another approach, which leads to similar results is receivables factoring....
by Dr Lisa | availability of money, Cash constraint, cash velocity, Dr Lisa Lang, maximizing cash flow, maximizing profitability, payment discount
Continuing our cash velocity discussion started on March 16, 2007 Last time (on Friday) we talked about offering a discount to our customers if they paid on delivery. What kind of discount could you offer to get cash back into your system faster so that you could make...
by Dr Lisa | cash to cash cycle time, cash velocity, Dr Lisa Lang, mafia offer, maximizing cash flow, maximizing profitability, payment discount, payment terms, throughput
Continuing our cash velocity discussion started on March 16, 2007 Now let’s look at the impact on what we discussed yesterday had on our throughput. Let’s say we immediately visit a customer whose complete order was shipped and had just been received by that customer....
by Dr Lisa | cash constrained company, Cash constraint, cash to cash cycle time, cash velocity, mafia offer, maximizing cash flow, maximizing profitability
Continuing our cash velocity discussion started on March 16, 2007Reducing Float for the Cash Constrained CompanyNow let’s consider a case where there is a cash constraint.When cash is your constraint, going out of business is usually not far behind. Most small...
