by Dr Lisa | POOGI Series, Theory of Constraints Finance, Accounting, and Cash Flow
The subtitle of The Goal is “A process of ongoing improvement”. Over the last 25 years, Dr. Goldratt has further developed the Theory of Constraints (TOC) as a holistic process to quickly and substantially improve business results. It is very compatible with Lean and...
by Dr Lisa | Theory of Constraints Finance, Accounting, and Cash Flow
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...
by Dr Lisa | Theory of Constraints Finance, Accounting, and Cash Flow
Cash velocity is a component of the wider topic of cash flow. Both cash flow and cash velocity are like good health. When you have it, you don’t really notice. But for many companies the time between when they have to pay their vendor and when they get paid is large...
by Dr Lisa | Theory of Constraints Finance, Accounting, and Cash Flow
Should I factor (sell) my receivables? I could use the cash, but the cost seems too high. This question is hard to answer without more information, so let’s look at an example: Let’s say it costs you $40 to make a product you typically sell for $100. If you could get...
