Throughput Economics – Answering a Troubling Question


​How to evaluate a new opportunity, its financial contribution, the generated cost and the involved risk, when quantitative information is, at best, partial? How come the existing tools cannot give a reliable answer?

Insights of Prof. Herbert Simon (Nobel award in 1978), explain the tendency to judge any new opportunity based on its own characteristics only, ignoring the dependencies within the global organization, like its impact on current sales and on capacity. Managers must understand the role and limitations of intuition in organizational decision making, and the difference between decisions done for one's own life and decisions done on behalf of an organization. The general direction of solution is combining the perspectives of various functions leading quantitative interacting analyses based on two scenarios: conservative and optimistic. Leading example about checking the idea of opening an export market will be provided.

Eli Schragenheim is a well-known international management educator and consultant active in various fields of management like corporate strategy, supply chain, project management, shop-floor control, IT and HR; Experienced with huge variety of organizations all over the world, including public-sector organizations, industrial, high-tech and start-ups, author of software simulators and management games, designed to experience the thinking and potential of the Theory of Constraints in complex environments, author and co-author of aa number of books on various aspects of management.

Event time: 7th of November, 2019

Venue:  ISM University of Management and Economics, III palace, room 114B

Event is free of charge.  Registration

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