Financial Throughput - Ongoing Use Case

Hi community, I have a real use case that is presenting a perfect opportunity to formally introduce throughput accounting a high levels in one of my client organizations. In summary, a traditional cost-savings business case was built a while ago, to justify the introduction of a new automation platform. Today the business case is being challenged due to inherent problems in such a model.
In order to get people to start thinking about throughput, I facilitated the mapping of a key value stream, focusing on the reduction of flow times. I would now like to extend the discussion to financial throughput.

I am bringing it to Sr Management with my client but would appreciate any additional thoughts on formalizing the discussion around financial throughput, based on real-world experience in this regard. Any lessons from failure or success?

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Brilliant. Can the three chapters on Throughput Accounting in “Tame your Work Flow” provide some hints?

Can you show that the automation platform had an impact (plus or minus) on the Financial Throughput? and compare to the impact of a Constraint’s based approach?

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Mario,

Super. If you want to, shaping your arguments around delta I, delta OE and Delta TH can be a good start.

It is a simple model.

CIoa

Mario,

In chapter 14, page 228 of the PDF book also has some juicy bits.

Cioa

Mario,

One final thing. Operational TH can be observed and measured … If financial TH cannot be measured directly, make a similar case than the one in the ‘show me the money’ - chapter 8 of the book