TOCICO

While it is pretty well-known that the concept of ‘cost-per-unit’ is flawed, the nature of the flaw and the possible implications of key decision making is not known. The workshop covers the basic flaw of the common cost accounting methods. Then the principles of T, I and OE are presented and why they are superior performance measurements, and superior information for decision making. Then the workshop identifies the current boundaries of the T, I and OE knowledge and the reason this simple method has not spread. Challenging some basic assumptions is required for coming to the critical new ability to rationally judge an idea by answering the question: Would the proposed idea increase the bottom-line or reduce it? The proper answer to the question involves translating human intuition into a numerical range and coming up with the full range of reasonable financial results that constitute the best supporting information for the top management team. Being able to quickly analyze almost any ‘crazy idea’ could open the door for many of the organization employees to feel free to suggest ideas. The outcome of such an analysis, based on the best available information, is much better exploitation of the organization's critical resources, leading to very high profitability. This workshop offers the opportunity to understand T, I and OE, both the current knowledge and also the new developments in this field.