About this Presentation
The P&Q is an example designed by Dr. Goldratt that became famous for its simple and effective attack on traditional cost accounting, demonstrating how wrong it can be. Based on that example the concept of Throughput by Constraint-unit, T/CU, is explained. However, that concept has to be treated with extra care, as is clarified by this webinar.
What Will You Learn
To help you get the most value from this session, we’ve highlighted a few key points. These takeaways capture the main ideas and practical insights from the presentation, making it easier for you to review, reflect, and apply what you’ve learned.
Cost per unit can be misleading in decision making and does not always indicate the right priorities between products.
The weakest link or the capacity constraint resource (CCR) is the only resource to consider for product mix decisions.
Adding a new product can significantly increase net profit, depending on its profitability and the capacity of the CCR.
Instructor(s)
