by Dr Lisa | maximizing profitability, theory of constraints, throughput
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...
by Dr Lisa | measurements, operating expense, theory of constraints, theory of constraints measures, throughput, TOC, toc measures, truly variable costs
We are continuing our series based on The Goal by Eliyahu M Goldratt and the Theory of Constraints. {This series was co-written with Brad Stillahn.} To make managing a complex organization easier, we break organizations into pieces. Many of the current measurements...
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 | eliyahu m goldratt, investment, operating expense, the goal eliyahu m goldratt, theory of constraints, throughput, throughput accounting
We are continuing our series based on The Goal by Eliyahu M Goldratt. We have discussed some of the problems with Cost Accounting, yet only touched on the alternative, “Throughput Accounting”. We promised to explore Throughput Accounting in more depth, and explain how...
