Recent Articles

Bottleneck

A manufacturing principle whereby somewhere in the production flow is a point of low or inability to keep up with the input. For business owners the key is identify the bottlenecks and fix them. This is a never ending concept and the end goal is to tweak production.

Cost Drivers in Small Business

10/19/2014

The textbook answer defines cost drivers as those factors that determine the overall cost of operations.  As an example, in manufacturing the cost drivers may be processing time or number of steps to produce the product.  In service, the cost [...]

Throughput – Business Definition and Identification

08/20/2013

When a business can maximize the product or service delivered within a given period of time, it has reached maximum throughput.  This is the basis of maximizing earnings and therefore profits for a company.  This article will examine the [...]

Operate Within Your Range of Production

02/13/2013

One of the basic business concepts is range of production.  It means maximizing the capacity (range) of the assets in your operation.  When the business operation goes beyond the maximum production range, costs associated with the marginal [...]

Find the Bottleneck

01/05/2013

In every business no matter production or service, there exists a bottleneck.  Your job as the owner or manager is to find it and fix the problem.  Once this one is found and resolved; move onto the next one.  There is always a bottleneck to find [...]

A Story About Great Production

12/12/2012

When I started out in accounting I had a job as a controller at a restoration contractor.  They would provide emergency mitigation for water damage jobs, mostly residential damage.  Every now and then we would get a call for a larger commercial [...]