Introduction to Throughput Accounting

Throughput accounting comes early for all studying Theory of Constraints.  The simplest is about the 3 KPIs: Throughput (T), Operating Expenses (OE) and Inventory (I) – later changed to Investment – and their relationship for higher profits.

Later, Throughput accounting is used to make sound decisions to maximize profit despite limited means, favoring the products with highest “octane”, which is the Throughput per time unit of the constraint.

Here is a 18 minute ‘essentials’ about Throughput Accounting provided by the London School of Business and Finance (LSBF).


View Christian HOHMANN's profile on LinkedIn

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s