All tagged throughput accounting
So you want to spend money, but it is difficult to figure out if its worth it. ` Or you’ve been tasked with calculating the Return on Investment (ROI) for a piece of equipment or undertaking a new initiative. Where to start? ROI = [△(Sales-TVC) - △Operating Expenses] / △Investment (△ is delta or “change in”)
Steve Holcomb has an article on LinkedIn that describes a nice success story in using the TOC concept of Throughput Accounting to guide decision making and bring a company back to profitability. This reminds me of a similar project I had.
Thomas Corbett's _Throughput Accounting_ is a quick read and very familiar for someone who has been in the Theory of Constraints world. I wonder if anyone comes to TOC via this route, rather than through The Goal and some of the other business novels.
James Robertson's "Knowledge managers: stuck in the shadow of immortal figures" has inspired some interesting discussion, both on his blog and in at least one email discussion list.