Profitable change starts with the right questions. TPACC helps to find the right answers. The answer for WHY change is desired, lies at the heart of the necessary action required to achieve the results. Throughput Accounting focuses on profitable change that maximizes the profit mix by identifying:
1. What to change?
2. What to change to?
3. How to cause the change?
These questions* are relevant to any system that wishes to improve. TPACC builds solutions that answer these questions because they clarify the route followed to achieve business goals.
A second set of steps that TPACC refer to when designing solutions, are called the ‘focusing steps’ :
1. Identify the constraint.
2. Decide on how to exploit the constraint.
3. Subordinate everything else to the constraint.
4. Elevate the constraint.
5. Refocus (back to step 1).
The focusing steps comprise a process of on-going improvement. Identifying constraints is often misunderstood and that is where TPACC can help you.
Our solutions often include an improvement in technology and we always ask the following question before implementing a solution:
What limitation does the new technology remove?
The objective of a TPACC solution is to maximize the profit mix. We do this by following a set of priorities. Change should:
1. Increase Throughput
2. Reduce Inventory, and
3. Reduce Operating expenses
…now, and in the future.
If you would like our help, contact us here.