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Expanding the Practical Impact of Throughput Accounting: FREE One-hour webinar
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New opportunities for knowledgeable TOC consultants (and practitioners) By Eli Schragenheim (the presenter). We all learned from the P&Q example demonstrating the fallacy of utilizing cost-per-unit in guiding management decision-making. Why was the lesson not effectively learned? Well, here is one obstacle. How should top management make their decisions when there is no active capacity constraint? More Information: http://www.illuminutopia.com/Events.aspx

12/12/2015
When: December 12, 2015
Where: ONLINE
Contact: Lisa Anne Ferguson, PhD
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http://www.illuminutopia.com/Events.aspx

New opportunities for knowledgeable TOC consultants (and practitioners) By Eli Schragenheim (the presenter) We all learned from the P&Q example demonstrating the fallacy of utilizing cost-per-unit in guiding management decision-making. Why was the lesson not effectively learned? Well, here is one obstacle. How should top management make their decisions when there is no active capacity constraint? Even when there is a constraint, what should management do when a proposed marketing plan might cause substantial growth in the demand, which could lead to the emergence of interactive constraints? Generally speaking, how should we judge decisions that are based on intuition? Do we fully comprehend the impact of those decisions on the total Throughput (and other TOC key measures of performance)? Can we also effectively analyze the impact on the capacity levels? I believe I have an answer, including the tools required to implement it. The solution is based on Throughput Accounting (TA), with some critical additions that expand the scope to allow the decision-makers to abandon the flawed concept of cost-per-unit (and other principles of absorption costing), to achieve substantially improved operational and financial performance.