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Could you please state how these factors will improve TPAR and any other factors which will affect TPAR?
1) Speedup Bottleneck Process
2) Increase the Selling Price
3) Reduce the Material costs
4) Reduce the Fixed costs
Please help me understand what factors will affect TPAR!
All of them will improve the TPAR.
I explain all of this in my free lectures 🙂
This is what I understood from your lecture please correct me if i’m wrong.
All these factors will improve TPAR:
1) Increase the selling price means higher Throughput cost per hour (i.e. return per hour)
2) Reduce the material cost means higher Throughput per hour (i.e. return per hour)
3) Reduce the fixed costs means fixed costs per bottleneck hours (i.e. factory cost per factory hour) will be lower
4) Speedup Bottleneck Process refers to produce faster by taking less hours per unit means higher Throughput per hour (i.e. return per hour)
That is correct 🙂