What is a Throughput Accounting Profit Model?

TPACC’s Throughput Accounting Profit Models are structured on the Theory Of Constraints approach and developed with a simplified Agile process.

What is a Throughput Accounting Profit Model?

The following points suggest some information that an innovative Throughput Accounting Profit Model could provide:

  • The identification of the System Constraint in order to exploit its capacity to maximize Throughput mixes,
  • Instantaneous creation of reports and charts of total system Throughput values for products & services,
  • Track total system Throughput and the rate of Throughput,
  • See the impact of tactics and strategy on profits,
  • Assist with improving or developing business strategies,
  • Test business plans for realism and study the profit impact of shifts of product & service mixes,
  • Analyze the profit impact of changes to production schedules and project flows,
  • Identify which factors are a limitation to system profitability,
  • Identify the effect of process improvements on profits before implementing changes, and
  • Assist in prioritizing capital expenditures and analyze the profit impact of changes in capital investment.

As each situation is unique to its environment, ThroughputAccounting Profit Models are also unique in their design, however, focus should always remain on the system’s goal.

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