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I saw your lecture and sorry to ask but this is what I understood.
When material is limited = we measure how much throughput return we lose on each kilo by not making the units of that ptoduct.
When labour is limited = we measure how much throughput return we lose on each hour by not making the units of that product.
Is this all correct?
Are you sure that you are referring to throughout accounting, because with throughput accounting we always calculate the throughout per factory hour.
I was referring to throughput key factor analysis.
When material is limited = we measure how much throughput return we lose on each kilo because we have shortage of material kgs available and we cannot make all the units of that product. So we need to calculate throughput return per kilo in $.
When labour is limited = we measure how much throughput return we lose on each hour because we have shortage of labour hours available and we cannot make all the units of that product. So we need to calculate throughput return per hour in $.
LIKE THIS:
Products = A / B
Throughput return = $10,000 / $12,000
Material kilos = 2000 kg / 3000 kg
Throughput return per kilo = $5 / $4
Ranking = 1st / 2ndThroughput analysis and key factor analysis are two separate topics, even though they both relate to limiting factors.
We do not use throughput accounting when material is limited and we never calculate throughput return per kg..
Throughput accounting is used when machine time in the factory is limited.
I do suggest that you watch the lectures again.
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