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Throughput Accounting - Optimise Globally
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Throughput Accounting - Optimise Globally

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Delivered at Agile Africa 2013 - edited for online viewing. …

Delivered at Agile Africa 2013 - edited for online viewing.

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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Transcript

  • 1. @danierouxThroughput Accounting Agile Africa 2013 Tuesday 17 September 13
  • 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. MISSION: MAKE THE BEST COFFEE I CAN AT HOME Tuesday 17 September 13
  • 4. FIRST: EQUIPMENT Tuesday 17 September 13
  • 5. Tuesday 17 September 13
  • 6. Tuesday 17 September 13
  • 7. Tuesday 17 September 13
  • 8. CAN I MAKE COFFEE? Tuesday 17 September 13
  • 9. NO Tuesday 17 September 13
  • 10. Tuesday 17 September 13
  • 11. Tuesday 17 September 13
  • 12. AWESOME MACHINE AND BEANS YIELDS ... Tuesday 17 September 13
  • 13. Tuesday 17 September 13
  • 14. WHICH IS NOT ... Tuesday 17 September 13
  • 15. Tuesday 17 September 13
  • 16. OPTIMISED FOR THE WRONG THING! Tuesday 17 September 13
  • 17. OPTIMISED FOR THE BEST MACHINE Tuesday 17 September 13
  • 18. WHICH DOES NOT AFFECT THE OUTPUT Tuesday 17 September 13
  • 19. Tuesday 17 September 13
  • 20. Tuesday 17 September 13
  • 21. Tuesday 17 September 13
  • 22. WHAT MATTERS IS WHAT YOU START WITH Tuesday 17 September 13
  • 23. WHAT MATTERS IS WHAT FLOWS THROUGH Tuesday 17 September 13
  • 24. WHAT MATTERS IS THE GLOBAL OPTIMISATION Tuesday 17 September 13
  • 25. THE COFFEE GRINDER MATTERS MORE Tuesday 17 September 13
  • 26. Tuesday 17 September 13
  • 27. Tuesday 17 September 13
  • 28. Tuesday 17 September 13
  • 29. CAN I MAKE COFFEE? Tuesday 17 September 13
  • 30. THE BEST COFFEE I POSSIBLY CAN? Tuesday 17 September 13
  • 31. Tuesday 17 September 13
  • 32. YES, MAYBE Tuesday 17 September 13
  • 33. AT THE BEST POSSIBLE PRICE? Tuesday 17 September 13
  • 34. NO Tuesday 17 September 13
  • 35. Tuesday 17 September 13
  • 36. Tuesday 17 September 13
  • 37. Tuesday 17 September 13
  • 38. OPTIMISING GLOBALLY GOT US FROM: Tuesday 17 September 13
  • 39. Tuesday 17 September 13
  • 40. TO Tuesday 17 September 13
  • 41. Tuesday 17 September 13
  • 42. AND ULTIMATELY TO Tuesday 17 September 13
  • 43. Tuesday 17 September 13
  • 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. THROUGHPUT ACCOUNTING Tuesday 17 September 13
  • 46. Return on Investment Net Profit = Investment Tuesday 17 September 13
  • 47. = Throughput - Operating Expense Net Profit Tuesday 17 September 13
  • 48. = Revenue - TotallyVariable Costs Throughput Tuesday 17 September 13
  • 49. = Revenue - TotallyVariable Costs Throughput = Rate the system makes money Tuesday 17 September 13
  • 50. = Revenue - TotallyVariable Costs Throughput = Rate the system makes money = WTF Tuesday 17 September 13
  • 51. = Revenue - TotallyVariable Costs Throughput = Rate the system makes money = WTF (Working Tested Features) Tuesday 17 September 13
  • 52. ROI = NP / I NP = T - OE Tuesday 17 September 13
  • 53. ROI = T - OE I Tuesday 17 September 13
  • 54. WHAT DOES THIS MEAN? Tuesday 17 September 13
  • 55. Increase in Throughput Decrease in Investment Decrease in Operating Expenses In Order, Optimise For Tuesday 17 September 13
  • 56. WHEN NEXT YOU SEE INSIPID COFFEE ... Tuesday 17 September 13
  • 57. Tuesday 17 September 13
  • 58. ASK: HOW CAN WE OPTIMISE GLOBALLY? Tuesday 17 September 13
  • 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