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 … Continue reading Introduction to Throughput Accounting