6 Throughput accounting PDF

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throughput accounting lecture...

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We e k3–L e c t u r e2 T h r o u g h p ut Ac c o u n t i n g T h es i n g l eme a s u r eo f p e r f o r ma n c e=T h r o u g h p u t Ac c o u n t i n gRa t i o( T P AR) T P AR=( r e t u r np e rf a c t o r yh o u r o f t h eb o t t l e n e c kr e s o u r c e/ c o s t p e rf a c t o r yh o u r ) Re t u r np e r f a c t o r yh o u r =( t h r o u g h p u t c o n t r i b u t i o np e r u n i t / u n i t t i meo nb o t t l e n e c kr e s o u r c e ) Co s t p e rf a c t o r yh o u r=( t o t a l f a c t o r yc o s t / t o t a l t i mea v a i l a b l eo nb o t t l e n e c kr e s o u r c e ) T h i sT P ARe q u a t i o ni su s e dt o :  

Ascertain optimum use of a bottleneck through ranking of products. Assess product profitability in terms of ratio greater or equal to one.

T P AR=1i n d i c a t e sb r e a k e v e n T P AR>1i n d i c a t e sp r o fi t T P AR...