PM – Kaplan question 60 – Throughput accounting

Throughput accounting considers that time at a bottleneck resource has value, not elsewhere. This means that the focus is on maximizing the utilisation and efficiency of the bottleneck resource, as it determines the overall throughput of the system.
Other resources that are not bottlenecks are not given the same level of importance in throughput accounting.

Throughput accounting views stock building as a non-value adding activity and therefore discourages it. The rationale behind this is that holding inventory ties up resources and capital without generating immediate revenue. Throughput accounting aims to minimise inventory levels and promote a just-in-time approach, where materials are acquired and used only as needed to fulfill customer demand.