Thruput Accounting: An introduction

thruput-accounting

In era when accounting was invented, bulk of the cost of a product was truly variable. However in the current era, period expense has become substantial. So, when a significant portion of expenses is artificially allocated to a product, it creates many problems when these variables are used as measurements for decision making.

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Beating the Recession Blues

beating-the-recession-blues

Management consulting industry and all IT vendors in enterprise space, promising productivity improvement have a business cycle well aligned with the overall economy. They grow fast when the overall economy is booming and they get into trouble when recession strikes the economy. This looks rather strange.

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Blaming it on Estimation!

Blame-it-on-estmation

If one goes by the widely acclaimed Chaos reports released by the Standish Group, software projects seem to have a dubious record. In 1995, the report highlighted that only 16% of the IT projects were completed on time, within budget with original scope.

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Focus on longest path ≠ shortest possible lead-time

Focus-on-the-longest-path-shortest-possible-leadtime

Every literature on project management reminds us that the longest path of dependent tasks determines the total duration of the project. So, logically speaking, project management should focus on ensuring minimal delays on the longest path? Maybe not always…

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From Sales to Production – a tale of misaligned priorities

From-sales-to-production-a-tale-of-misaligned-priorities

I once had an opportunity to engage with a company producing and selling custom-built equipment for banks to try and help cut “flab” and steer the company towards improved profitability. But what unfolded, during my discovery of company’s practices was an object lesson for me…

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