About this Presentation
Webinar series No. 4. The idea of using money and time together have been raised by Eli Goldratt for quite a long time, but eventually did not fully enter the existing TOC applications. On top of using them as performance measurements, value-days were used in the 'flush' concept as a way to assess the desirability of investments. This concept also practically disappeared from the TOC actual practice. Do throughput (TDD) and inventory dollar days (IDD) truly work? Are BOTH equally important? Is the assumption that money and time are different dimensions true? Does 'flush' give better judgment of investment than net-present-value (NPV)? How do we explain that such concepts that look so prominent have few implementations?
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.
The session reveals that new performance measures like throughput-dollar-days (TDD) and inventory-dollar-days (IDD) go beyond percentages by combining value and time — offering a deeper lens on due-date performance and investment timing than conventional metrics.
It shows that while value-days can make lateness and delivery risk more visible, they are not intuitive and may drive misleading priorities if applied without understanding how measurements shape behavior.
The presentation illustrates how local performance measures such as TDD/IDD can distort decisions when they ignore dependencies — for example, penalizing functions for inventory moves that don’t actually affect overall throughput or customer value.
It emphasizes that measurement design itself must be scrutinized with TOC logic (cause-and-effect analysis), including exploring negative branches of new metrics, to ensure they guide better decisions rather than chasing flawed productivity signals.
Instructor(s)
Eli Schragenheim
Eli Schragenheim is a well-known international management educator, author and consultant active in various fields of management. He worked with a huge variety of organizations all over the world, including public-sector organizations, industrial, high-tech and start-ups. Since he had joined Dr. Eliyahu M. Goldratt, the famous creator of the Theory of Constraints (TOC) in 1985, Eli Schragenheim had taught, spoke at conferences, and consulted all over the globe. Eli Schragenheim is the author of several books on various aspects of management. His last book, Throughput Economics – Making Good Management Decisions, together with Henry Camp and Rocco Surace, was published in July 2019. Eli Schragenheim first book Management Dilemmas (1998) showed a variety of problematic situations in management and the rigorous analysis leading to the right solution. Next he collaborated with William H. Dettmer in writing Manufacturing at Warp Speed. In this book the new concept of Simplified-DBR, now a key concept in production planning according to TOC, was introduced. He collaborated with Carol A. Ptak on ERP, Tools, Techniques, and Applications for Integrating the Supply Chain, and with Dr. Goldratt and Carol Ptak on Necessary but Not Sufficient. In 2009 his book Supply Chain Management at Warp Speed, with William H. Dettmer and Wayne Patterson was published. In March 2015, Eli has opened a blog, now containing more than 140 articles on various topics in TOC that everybody can access.