About this Presentation
TOC Managerial Finance- The Compass (a homage to Eli Schragenheim) workshop Throughput accounting is a poor name for the TOC tools for supporting financial decision-making. Here we call it by the more appropriate name: Financial Compass. In this workshop we will revisit the basic principle of Throughput, Investment and Operation Expense and expand on these to the new developments and solutions for long standing limitations of these tools. We'll explore a new view of TVC, a deeper understanding of the Investment and its valuation and when ROI does and does not make sense, turns analysis, mix decisions without linear programming (should we use T/Cu or not, etc.), how to classify investment decisions in 3 categories (Bad, Good and OMG) and open up new avenues to establish win-win relationships across links of a supply chain.
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 speaker emphasized the importance of understanding the role of time in financial decision-making, stating that time is the ultimate human constraint.
The speaker proposed a differentiation between TVC in (costs to acquire things) and TVC out (costs associated with the transaction itself), stating that they occur at different moments in time and have different impacts on the investment needed to keep up the company.
The speaker also discussed the concept of Throughput, Investment, and Operational Expenses (T, I, OE) and how they can be used to make sound financial decisions.
Instructor(s)
