Theory of Constraints – Throughput Accounting. A Complete Guide
Traditional accounting methods, while good for financial reports, don’t always provide useful intel for optimizing operations. This is where throughput accounting shines. Throughput accounting stems from the Theory of Constraints by Dr. Eliyahu Goldratt. It recognizes that limits, or “bottlenecks”, restrict what companies can achieve. Bottlenecks can be internal, like sluggish production steps, or external […]