RE: Digest Number 63

Kent,

This is very much in keeping with Goldratt's idea that throughput of money
is an indication of the true creation of customer value.  I like it. For
one, it take us away from asking how much of the customer's backlog is just
a wish list and how much represents critical value that should be measured
in SIP....  It also expands the concept of customer value beyond what can be
clearly articulated by the customer.

Mary Poppendieck
www.poppendieck.com
952-934-7998


   Date: Mon, 10 Feb 2003 09:57:56 -0800
   From: "Kent Beck" <[email protected]>
Subject: RE: Re: SIP is not Takt Time

Eventually I'd like to make SIP money-oriented--the time from when the
money starts flowing out to the time when the money starts flowing in
(really hits our bank account). This brings the length of billing cycle
and the length of the collection cycle into the picture. When I was at a
supercomputer startup, everybody was aware the number of days
receivables stayed outstanding, partly because of the cash flow
implications (would our paychecks clear), but mostly because it was the
most concrete feedback engineering got about whether we were doing a
good job. If receivables went from 45 to 90 days, it was most often
because we weren't delivering value--customers didn't have enough
training to use the machine, the installation procedure was too hard,
the hardware was flaky.
 
Kent




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