Re: SIP is not Takt Time

Dan,
This paragraph helped a lot:

> This is the precise pattern that takes place in bookkeeping. The takt
>  values are debits; cycle time is credit. There is a list of one or 
> more debits for each expression of credit, just as you have a list of
>  takt values for each expression of a cycle. The one and only one 
> credit expression is made clear in this example because credit, or 
> cycle, expresses an image of a complete set of measurements.


Initially I thought that it should be the other way around, i.e. takts
would be credits and cycles would be debits. My reasoning was that if
cycle times where higher than the goal takt times debits would exceed
credits, which would be bad.

However as
http://www.accounting-and-bookkeeping-tips.com/learning-accounting/accounting-basics-credit.htm
explains, that's just my bank confusing me.

 From the above page: "In fact, debits and credits are neither good nor 
bad. Each transaction,whether it be a good transaction (deposits), or a 
bad transaction (bills) has both a debit and an equal credit. That's why 
they call it double-entry accounting."

"A debit is one component of every accounting transaction showing what 
the company received as a result of that transaction. Debits increase 
assets of a company and decrease liabilities and equity of a company."

"A credit is one component or every accounting transaction indicating 
the source of the item received. Credits increase liabilities and equity 
and decrease assets on the balance sheet."

With this in mind, is cycle time a credit because if this measure 
increases, that's an liability increasing?

By the same logic, if takt time increases that's an asset increasing in 
value as this goal is easier to meet?

What I'm still not clear on is what the transaction is with repect to 
software.

Oliver Bye


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