Too good I mean the explanations of each concepts is simple precise and easy to follow. I wonder why there is no updates in this channel which made good videos once upon a time \
Overall great video! There are some things that need to be corrected: 1. Bottleneck is NOT the same as THE Constraint. The Constraint IS the limiting factor of a company, you can even choose what it is strategically. 2. Throughput Profit doesn't exist. Only a company has Profits. A product contributes with Throughput Margin and is additive. 3. Direct Cost is not a concept in Throughput Accounting. The term is Totally Variable Cost (what varies with sales) and does not consider Direct Labor. Direct Labor is part of Operating Expenses and is recognised the month is incurred. Included in Truly Variable Cost Raw and Packaging Materials, Sales Comission, Outside Services, Freights.
I think the definitions you use could use some refinement. A bottleneck is any point in the process that has less capacity than the demand placed on it. Whereas the bottleneck with the least capacity in the system is the CONSTRAINT of the system. For example, if market demand was more than 100 beers per month, then even the mixing step would be considered a bottleneck, but the fermenting step would remain the constraint.
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Too good I mean the explanations of each concepts is simple precise and easy to follow. I wonder why there is no updates in this channel which made good videos once upon a time
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Best explanation out there, you’re a literal life saver
Thank you so much sir for this video. You explained everything much more clearly and easily than all of my teachers.
Overall great video!
There are some things that need to be corrected:
1. Bottleneck is NOT the same as THE Constraint. The Constraint IS the limiting factor of a company, you can even choose what it is strategically.
2. Throughput Profit doesn't exist. Only a company has Profits. A product contributes with Throughput Margin and is additive.
3. Direct Cost is not a concept in Throughput Accounting. The term is Totally Variable Cost (what varies with sales) and does not consider Direct Labor. Direct Labor is part of Operating Expenses and is recognised the month is incurred. Included in Truly Variable Cost Raw and Packaging Materials, Sales Comission, Outside Services, Freights.
LEGEND|!!!!!!!!!!!!!!!!!!!!!11
Very well explained
Thank you
superb
I think the definitions you use could use some refinement. A bottleneck is any point in the process that has less capacity than the demand placed on it. Whereas the bottleneck with the least capacity in the system is the CONSTRAINT of the system. For example, if market demand was more than 100 beers per month, then even the mixing step would be considered a bottleneck, but the fermenting step would remain the constraint.