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Throughput Accounting

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This workshop introduces the mechanics of Throughput Accounting. It is NOT about financial accounting, but is, rather about management accounting—i.e. making better day-to-day decisions. The objective of the workshop is NOT to become proficient on throughput accounting techniques; the workshop IS about seeing and thinking holistically. Throughput accounting provides both a structure for thinking holistically and a set of tools for predicting impact of alternative actions on the system as a whole.

Topics include:

  • Key TOC Terms
  • Key Throughput Accounting terms
  • Priorities: Cost Accounting vs. Throughput Accounting
  • Financial Analysis worksheet (Noreen, Smith, Mackey)
  • Evaluating alternative actions when the constraint is internal
  • Evaluating alternative actions when the constraint is external
  • Multi-plant corporations
  • Pricing
  • Launching new products
  • Evaluating set-ups, scrap, and batch sizes.

The principles taught in this workshop are covered in detail in the book "Throughput Accounting" by Thomas Corbett, North River Press, 1998.