Dr. Eliyahu M. Goldratt – Finance and Measurements – T, I & OE and Throughput Accounting

Description

Dr. Eliyahu M. Goldratt – Finance and Measurements – T, I & OE and Throughput Accounting

Description

Finance, as a key function in any organization, must be able to answer critical questions:

– what is the company\\\’s performance?
– do we invest in equipment and machinery?
– should we make or buy?
– should we use profit centers or cost centers?
– what is the profit of a product/service?

Reality and research have shown that cost-accounting based decisions and using local measurements can be devastating to the performance on the shop floor, marketing, sales, engineering, purchasing and even distribution.

In this session Dr. Goldratt will show how financial decisions should be based on the system as a whole and not according to their local impact. A clear but simple set of metrics can bridge the gap between the bottom line and the local actions to deliver the best results.

Your organization will learn the significant impact of using Throughput Accounting – the Theory of Constraints (TOC) solution for Finance and Measurements to focus on simple indicators.

Includes a Q&A segment.

A knowledge sharing tool for group learning and buy-in to:

• How can any organization bridge the gap between the bottom line measurements (the P&L and the Balance Sheet) and the local measurements (efficiencies, pay-back period, product cost, etc.)?
• Get an in-depth analysis and the corresponding solutions of the problems faced in financial decisions like judging the system as a whole, profit centers, investment on equipment, make/buy alternatives, and product/service profit.
• Learn the significant impact of using Throughput Accounting – the Theory of Constraints (TOC) solution for Finance and Measurements to focus on simple indicators.
• Answers the questions “what to change?” and “what to change to?” to significantly IMPROVE PERFORMANCE.
• Gain consensus from different stakeholders.
• Use as a comprehensive and system-focused learning resource for organizational development, group training, curriculum or library.

Content

What is the problem?

• What is the job of finance?
• Example of disaster in make/buy
• Example continued for investm ent in equipment
• Judgment of the system as a whole
• Judgment on investment in equipment
• Judgment on make/buy/alternatives
• Judgment on profit centers
• Judgment on product/service profit using the P&Q Example
• Defining T, I, OE
• Defining Net Profit and Return on Investment
• The Chain Analogy & Cost World vs. Throughput World
• The Cloud of Managers

What is the solution (what to change to)?

• The Five Focusing Steps: Step 1 Identify the Constraint:
• Step 2: Decide how to Exploit the constraint
• Step 3: Subordinate
• Step 4: Elevate
• Step 5: Go back
• Using the Five Steps to judge the product/service profit
• The Ball is now in Marketing
• Now how to judge investment in equipment
• Judging make/buy alternatives
• Judgment of the system as a whole
• Judgment of profit centers

Get Digital Download ” Dr. Eliyahu M. Goldratt – Finance and Measurements – T, I & OE and Throughput Accounting ” Right Now!