Throughput Accounting and Project Planning Flashcards
(23 cards)
What is the equation for throughput
Revenue per production Run - Materials and Freight out
What is the formula for profit velocity
throughput / Production Time
What are some ways of maximizing profit velocity
avoid downtime (shift changes/brakes)
outsource low profit velocity work
optimize change over
reduce waste
what is Project Planed Value (PV)
Estimated value of the work planned to be done
What is Project Earned Value (EV)
Estimated value of the work actually accomplished
what is project actual cost (AC)
Actual costs incurred to date
What is project budget at completion (BAC)
currently expected total cost of a project (PV end point)
What is project estimated cost at completion (EAC)
how much we expect the total project to cost at completion
what is project estimated cost to complete (ETC)
how much more to finish (From now)
What is project variance at completion (VAC)
how much over / under are we expected to be at completion
What is the planned Value formula
PV = Planned % Complete x BAC
what is the earned value formula
EV = Actual % complete x BAC
What is the Actual Cost Formula
AC = Actual Cost..
What is the schedule performance index
SPI = EV/PV (>1 is favorable)
What is the Schedule Variance
SV = EV - PV (Positive is favorable)
What is the Cost Performance Index Formula
CPI = EV/AC (>1 is favorable)
what is the cost variance Formula
CV = EV - AC (Positive is favorable)
What is the cost Estimate at Completion Formula
EAC = BCA/CPI
What is the cost estimate to complete formula
ETC = EAC - AC
what is the variance at completion formula
VAC = BAC - EAC
What are the Return of Investment Basics
Identify the investment
Identify the net benefits
Identify the timeline
Determine the return OF investment (investment / timeline)
Annual Benefits - annual Return of investment = Return ON investment
What is the %ROI formula
%ROI = Annual Monetary returns ON investment / Investment
