by Dr Lisa | Theory of Constraints Finance, Accounting, and Cash Flow, Theory of Constraints for Strategy
Question: How much excess capacity do you need to have to make a Viable Vision viable? Answer: It depends. Squeezing more capacity out of your existing operation without investment is relatively easy (you read about it in The Goal, Its Not Luck, and Critical Chain)....
by Dr Lisa | Theory of Constraints Finance, Accounting, and Cash Flow, Theory of Constraints Sales
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” company, do you ever have the case where you don’t have the product...
by Dr Lisa | Theory of Constraints Finance, Accounting, and Cash Flow
Increase Selling Prices Changing the selling price for a product or group of products is difficult to cover in few words. Presumably you already have pricing policies and strategy that represent some equilibrium point in the market you serve and getting some minimum...
by Dr Lisa | Theory of Constraints Finance, Accounting, and Cash Flow
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 | Theory of Constraints Finance, Accounting, and Cash Flow
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. We make, and they accept, our 20% Discount Mafia Offer and we...
