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Understand What Flows Through Your Business to Find Improvement

Started by , Apr 08 2005 08:13 PM
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Understand What Flows Through Your Business to Find Improvement
By Chuck Yorke

I remember once seeing a cartoon which showed two people working a counter. On the wall behind them was a sign which read, 'Quality Work, Low Price, Fast Service - Pick Two.' In order to deliver all three, which is what customers expect, it's important to understand the flows of your organization.

The first flow is, of course, cash flow. This comes in two varieties, money coming into the organization, revenue, and money going out, expenses. Understanding cash flow is not as easy as it appears. Throughput accounting and Lean accounting are two methods some companies are using to try and get a better understanding of how cash flows through a business.

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Understand What Flows Through Your Business to Find Improvement

Regards,
Simon
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