Throughput Accounting e-Analysis

Throughput Accounting e-Analysis moving danger zone to safety zone.

A Throughput Accounting e-Analysis is an analytical comparison of:

(a) achieved profit mixes, and

(b) desired future profit mixes

that take operating capacity utilizations into account.

In many cases, desired future profit mixes are not achieved by businesses for a variety of reasons, including unrealistically high efficiency expectations. Businesses continue to perform below their expectation, without realizing that their tactics or strategies do not facilitate the achievement of their goals. Sometimes efficiencies are high, but profits are low. Luck may play a role, but science can help protect the system against variables, improving the outcome of success.

The e-Analysis tests whether expectations are indeed realistically achievable, paving the way to a better future by maintaining inertia towards a system’s goal.

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