Throughput Accounting Workshop

Learn the skills of a powerful, yet simple management accounting approach that maximizes productivity and profit.

The workshops range in length from 1 day to 5 days. Designed to swiftly equip you with throughput accounting knowledge, you'll be able to apply the concepts with hours.

Throughput Accounting (TA) is form of accounting that focuses all employees on the organization's main goal, i.e., creating shareholder wealth, supplying a service, etc. The TA approach breaks away from the insistence of clinging to cost allocation. Rather, it concentrates on maximizing throughput.

If you're getting the wrong indicators from traditional costing methods, such as Absorption Costing, Standard Costing, Activity Based Costing, etc, then TA provides you with a simple, powerful alternative to decision making. Also referred to as Constraints Accounting or Theory of Constraints Accounting, TA can help you improve your productivity and make your profits soar to new heights.

Constraints; the Secret to Improved Performance

Every organization has at least one constraint that limits it from achieving better performance. We know this is true, because without constraints, organizations would be achieving infinite performance! These workshops will show you the difference between internal and external constraints and how taking the right action with a combination of historical and proactive data will yield huge gains in performance.

Today's Costing and Decision Making Systems

Modern costing systems have one thing in common: allocation of total costs to products and services. Without this allocation, products and services may be sold below the price that yields profits. Although each system of allocation is different, they all share this flawed assumption. Thus, it is impossible to make decisions that maximize profits based on these systems.

The Throughput Accounting Difference

Throughput Accounting does NOT attempt to allocate all costs to products; only those that are truly variable with the sale of the product. These costs, called Totally Variable Costs, adhere to the rules of variation. All other costs that are not variable are pooled into Operating Expense (OE). The costs, which obviously must be recovered, are not allocated to products and services.

Neither does Throughput Accounting does not look at revenue in isolation. Throughput, the rate at which the system generates money is calculated and used to evaluate every decision, resulting in actions that move the organization closer to the goal (more profit!).

Our Approach

Our courses have evolved from our experiences doing implementations over the last 20 years. We teach you how to avoid making the common errors that inexperienced people often make, so you'll get it right the first time. Whether you have in-depth knowledge or you're a novice, our workshops will cultivate the proper thinking and improve your decision making capabilities.

Begin now. Identify a champion to implement, and empower your team with the tools to get started measuring performance the TA way.

What We Do

We've developed the workshops to transfer the essential knowledge; knowledge that includes throughput accounting's unique abilities to:

Quantify the financial results by focusing internal resources
Refocus current efforts to improve performance

Our in-house workshops use the best instructional methods and techniques to ensure a positive experience.

Who Should Attend

These workshops are taught from a global perspective. Ideally, a team from finance, sales, operations, and distribution with strategic and profit making decision abilities will benefit the most. A team can collaborate on on planning and implementing what they have learned. Of course, individual participants are welcome, too.