Ch 29

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Should we use the last 12 months or the last 2 months as a base for determining the cost of parts?

D: Use the past 2 months records as a base determining the cost of parts
D': Use the past 12 months as a base to determine the cost of parts
B: Show the board the vast improvements we've made
C: Show accurate accounting records
A: Make the board happy
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In order to Make the board happy I must Show the board the vast improvements we've made and in order to Show the board the vast improvements we've made I must Use the past 2 months records as a base determining the cost of parts. But, in order to Make the board happy I must also Show accurate accounting records and in order to Show accurate accounting records I must Use the past 12 months as a base to determine the cost of parts. I can't both Use the past 2 months records as a base determining the cost of parts and Use the past 12 months as a base to determine the cost of parts.
RelationAssumption(s)Injection(s)
B-D1.This is the only way to show improvement
2.The board does not understand Throughput world thinking
Teach the board throughput world thinking
C-D'This is company policy
A-BThis makes us look good.
A-CThis is what they want to see