Delivered at Agile Africa 2013 - edited for online viewing. Abstract: The phrase "optimise globally, not locally" is used often. So is the phrase "sleeping like a baby". As with the second phrase, the first one isn't appreciated fully. "Sleeping like a baby" means to wake up screaming every hour requiring a nappy change. Coincidentally, a local optimisation in spite of the global need has exactly the same effect.

1. @danierouxThroughput Accounting
Agile Africa 2013
Tuesday 17 September 13

2. THIS PRESENTATION WAS EDITED TO
BE MORE “ONLINE FRIENDLY”.
i.e. it has many, many more words on many more slides.
Tuesday 17 September 13

3. MISSION: MAKE THE BEST
COFFEE I CAN AT HOME
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4. FIRST: EQUIPMENT
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5. Tuesday 17 September 13

6. Tuesday 17 September 13

7. Tuesday 17 September 13

8. CAN I MAKE COFFEE?
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9. NO
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10. Tuesday 17 September 13

11. Tuesday 17 September 13

12. AWESOME MACHINE AND
BEANS YIELDS ...
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13. Tuesday 17 September 13

14. WHICH IS NOT ...
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15. Tuesday 17 September 13

16. OPTIMISED FOR THE
WRONG THING!
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17. OPTIMISED FOR THE
BEST MACHINE
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18. WHICH DOES NOT
AFFECT THE OUTPUT
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19. Tuesday 17 September 13

20. Tuesday 17 September 13

21. Tuesday 17 September 13

22. WHAT MATTERS IS WHAT
YOU START WITH
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23. WHAT MATTERS IS WHAT
FLOWS THROUGH
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24. WHAT MATTERS IS THE
GLOBAL OPTIMISATION
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25. THE COFFEE GRINDER
MATTERS MORE
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26. Tuesday 17 September 13

27. Tuesday 17 September 13

28. Tuesday 17 September 13

29. CAN I MAKE COFFEE?
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30. THE BEST COFFEE I
POSSIBLY CAN?
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31. Tuesday 17 September 13

32. YES, MAYBE
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33. AT THE BEST POSSIBLE
PRICE?
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34. NO
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35. Tuesday 17 September 13

36. Tuesday 17 September 13

37. Tuesday 17 September 13

38. OPTIMISING GLOBALLY
GOT US FROM:
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39. Tuesday 17 September 13

40. TO
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41. Tuesday 17 September 13

42. AND ULTIMATELY TO
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43. Tuesday 17 September 13

44. TELL ME HOW YOU
MEASURE ME, AND I WILL
TELL YOU HOW I WILL
BEHAVE.
Dr Eliyahu Goldratt -The Haystack Syndrome (1990)
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45. THROUGHPUT
ACCOUNTING
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46. Return on Investment
Net Profit
=
Investment
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47. = Throughput - Operating Expense
Net Profit
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48. = Revenue - TotallyVariable Costs
Throughput
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49. = Revenue - TotallyVariable Costs
Throughput
= Rate the system makes money
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50. = Revenue - TotallyVariable Costs
Throughput
= Rate the system makes money
= WTF
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51. = Revenue - TotallyVariable Costs
Throughput
= Rate the system makes money
= WTF (Working Tested Features)
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52. ROI = NP / I
NP = T - OE
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53. ROI =
T - OE
I
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54. WHAT DOES THIS MEAN?
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55. Increase in Throughput
Decrease in Investment
Decrease in Operating Expenses
In Order, Optimise For
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56. WHEN NEXT YOU SEE
INSIPID COFFEE ...
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57. Tuesday 17 September 13

58. ASK: HOW CAN WE
OPTIMISE GLOBALLY?
Tuesday 17 September 13

59. @danieroux
danie@danieroux.com
The Principles of Product Development Flow:
Second Generation Lean Product Development
- Donald G. Reinertsen
The Goal
- Eliyahu M. Goldratt
Tuesday 17 September 13