by Dr Lisa | operating expense, poogi, pricing, T/CU, the goal eliyahu m goldratt, theory of constraints, throughput, throughput per constraint unit
We are continuing our series based on The Goal by Eliyahu M Goldratt. You can also perform a sensitivity analysis to determine the breakeven level of T/CU. In this example, it would be the Operating Expense level of $615,000 divided by 2,912 which is $211.20. Pricing...
by Dr Lisa | eliyahu goldratt, operating expense, poogi, T/CU, the goal eliyahu m goldratt, theory of constraints, throughput, throughput per constraint unit
We are continuing our series based on The Goal by Eliyahu M Goldratt. Let’s apply this to your business. In order to do so, you’ll need to make some calculations. First, write down your annual sales. Second, subtract the Truly Variable Costs (these include raw...
by Dr Lisa | eliyahu goldratt, operating expense, poogi, T/CU, the goal eliyahu m goldratt, theory of constraints, throughput, throughput per constraint unit
We are continuing our series based on The Goal by Eliyahu M Goldratt. Dr. Goldratt says it this way: “If a process of ongoing improvement is what we are after, which of the three avenues of Throughput, Inventory, or Operating Expense is more promising? If we just...
by Dr Lisa | contribution margin, gross margin, the goal eliyahu m goldratt, throughput accounting, throughput per constraint unit
We are continuing our series based on The Goal by Eliyahu M Goldratt. Throughput is the rate at which the system generates money. It is similar to Gross Margin or Contribution Margin, but it is also different in that TOC (Theory of Constraints) does not consider...
by Dr Lisa | competitive pricing, determining prices, Dr Lisa Lang, mafia offer, market constraint, S-DBR, simplified drum buffer rope, T/CU, throughput accounting, throughput per constraint unit, viable vision
I have not yet finished Blue Ocean Strategy. I will explain why when I post my review. I have, however, received a pricing question and have written an answer. Enjoy. Q: What about companies that have a market constraint and use S-DBR? A: For companies that have a...
by Dr Lisa | competitive pricing, determining prices, Dr Lisa Lang, eliyahu m goldratt, goldratt, pricing, selling prices, strategic pricing, T/CU, the goal, throughput accounting, throughput per constraint unit
This is the final installment on Theory of Constraints pricing. At least for now. Goldratt’s Theory of Constraints, The Goal, and Throughput Accounting don’t address pricing specifially. So, I tried to summarize what we do with our clients. This pricing...
