Welcome to TPACC
Maximize the profit mix with Throughput Accounting
Throughput Accounting (TA) is a principle-based and simplified management accounting approach that provides managers with decision support information for enterprise profitability improvement.
Every enterprise and organization operating in all kinds of markets, and providing all kinds of products and services, all over the world, is limited by at least one constraint, otherwise endless profits would be made, goals would consistently be achieved, and failures would not exist. Finding constraints is the first step, but taking productive action can be illusive. Throughput Accounting techniques are used in large and small enterprises, in business intelligence, product design, marketing strategies, and even in not for‑profit organizations. Throughput Accounting is a management accounting method of measuring performance whilst acknowledging that constraints exist. It is designed to measure the impact of decisions that affect the two P’s, Productivity and Profitability. Its measurement methods are used in the Theory Of Constraints, as well as with Lean, Six Sigma, Agile, and other continuous improvement methods.
“I just finished reading Etienne’s new book and I must say it is brilliant! It teaches the subject at all levels of understanding and I highly recommend it to everyone. Bob Sproull”
“This would be a great read for any who’ve tried or are trying to deploy organizational changes. Changes that you “know in your heart” are the right thing to do, but which fail to “move the needle” of financial performance measures, either during project justification or actual deployment. It may simply be that we need a different way (Throughput Accounting) to look at the financial performance measures we already have in place (GAAP). Thank you Etienne for this purposeful work.”