Throughput Accounting - Optimise Globally

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Abstract:

The phrase "optimise globally, not locally" is used often. So is the phrase "sleeping like a baby". As with the second phrase, the first one isn't appreciated fully.

"Sleeping like a baby" means to wake up screaming every hour requiring a nappy change. Coincidentally, a local optimisation in spite of the global need has exactly the same effect.

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Throughput Accounting - Optimise Globally

  1. 1. @danierouxThroughput Accounting Agile Africa 2013 Tuesday 17 September 13
  2. 2. THIS PRESENTATION WAS EDITED TO BE MORE “ONLINE FRIENDLY”. i.e. it has many, many more words on many more slides. Tuesday 17 September 13
  3. 3. MISSION: MAKE THE BEST COFFEE I CAN AT HOME Tuesday 17 September 13
  4. 4. FIRST: EQUIPMENT Tuesday 17 September 13
  5. 5. Tuesday 17 September 13
  6. 6. Tuesday 17 September 13
  7. 7. Tuesday 17 September 13
  8. 8. CAN I MAKE COFFEE? Tuesday 17 September 13
  9. 9. NO Tuesday 17 September 13
  10. 10. Tuesday 17 September 13
  11. 11. Tuesday 17 September 13
  12. 12. AWESOME MACHINE AND BEANS YIELDS ... Tuesday 17 September 13
  13. 13. Tuesday 17 September 13
  14. 14. WHICH IS NOT ... Tuesday 17 September 13
  15. 15. Tuesday 17 September 13
  16. 16. OPTIMISED FOR THE WRONG THING! Tuesday 17 September 13
  17. 17. OPTIMISED FOR THE BEST MACHINE Tuesday 17 September 13
  18. 18. WHICH DOES NOT AFFECT THE OUTPUT Tuesday 17 September 13
  19. 19. Tuesday 17 September 13
  20. 20. Tuesday 17 September 13
  21. 21. Tuesday 17 September 13
  22. 22. WHAT MATTERS IS WHAT YOU START WITH Tuesday 17 September 13
  23. 23. WHAT MATTERS IS WHAT FLOWS THROUGH Tuesday 17 September 13
  24. 24. WHAT MATTERS IS THE GLOBAL OPTIMISATION Tuesday 17 September 13
  25. 25. THE COFFEE GRINDER MATTERS MORE Tuesday 17 September 13
  26. 26. Tuesday 17 September 13
  27. 27. Tuesday 17 September 13
  28. 28. Tuesday 17 September 13
  29. 29. CAN I MAKE COFFEE? Tuesday 17 September 13
  30. 30. THE BEST COFFEE I POSSIBLY CAN? Tuesday 17 September 13
  31. 31. Tuesday 17 September 13
  32. 32. YES, MAYBE Tuesday 17 September 13
  33. 33. AT THE BEST POSSIBLE PRICE? Tuesday 17 September 13
  34. 34. NO Tuesday 17 September 13
  35. 35. Tuesday 17 September 13
  36. 36. Tuesday 17 September 13
  37. 37. Tuesday 17 September 13
  38. 38. OPTIMISING GLOBALLY GOT US FROM: Tuesday 17 September 13
  39. 39. Tuesday 17 September 13
  40. 40. TO Tuesday 17 September 13
  41. 41. Tuesday 17 September 13
  42. 42. AND ULTIMATELY TO Tuesday 17 September 13
  43. 43. Tuesday 17 September 13
  44. 44. TELL ME HOW YOU MEASURE ME, AND I WILL TELL YOU HOW I WILL BEHAVE. Dr Eliyahu Goldratt -The Haystack Syndrome (1990) Tuesday 17 September 13
  45. 45. THROUGHPUT ACCOUNTING Tuesday 17 September 13
  46. 46. Return on Investment Net Profit = Investment Tuesday 17 September 13
  47. 47. = Throughput - Operating Expense Net Profit Tuesday 17 September 13
  48. 48. = Revenue - TotallyVariable Costs Throughput Tuesday 17 September 13
  49. 49. = Revenue - TotallyVariable Costs Throughput = Rate the system makes money Tuesday 17 September 13
  50. 50. = Revenue - TotallyVariable Costs Throughput = Rate the system makes money = WTF Tuesday 17 September 13
  51. 51. = Revenue - TotallyVariable Costs Throughput = Rate the system makes money = WTF (Working Tested Features) Tuesday 17 September 13
  52. 52. ROI = NP / I NP = T - OE Tuesday 17 September 13
  53. 53. ROI = T - OE I Tuesday 17 September 13
  54. 54. WHAT DOES THIS MEAN? Tuesday 17 September 13
  55. 55. Increase in Throughput Decrease in Investment Decrease in Operating Expenses In Order, Optimise For Tuesday 17 September 13
  56. 56. WHEN NEXT YOU SEE INSIPID COFFEE ... Tuesday 17 September 13
  57. 57. Tuesday 17 September 13
  58. 58. ASK: HOW CAN WE OPTIMISE GLOBALLY? Tuesday 17 September 13
  59. 59. @danieroux danie@danieroux.com The Principles of Product Development Flow: Second Generation Lean Product Development - Donald G. Reinertsen The Goal - Eliyahu M. Goldratt Tuesday 17 September 13

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