- In my work (and my book) I modeled it as investment. The thinking it
up can be time-boxed or controlled in some manner. Answer the
How much are willing to invest in our next innovative idea?
This is usually constrained in most companies by the funding for the
marketing department. One of the challenges is that often cost
accounting prevents technical people from engaging at an early
enough stage to improve the quality of the ideas.
--- In email@example.com, Ron Jeffries
> On Tuesday, August 30, 2005, at 1:15:06 PM, David J Anderson wrote:and
> > To my mind, it is clearly not WIP unless it has been started,
> > that ought to involve a commitment back to the customerdetailing
> > when it will be delivered. In manufacturing terms a "due date".part of
> > Simply identifying it for the backlog does not count as starting.
> > The fact that the customer has dreamt it up and considers it
> > their value stream is not justification for it becoming WIP. Touse
> > the manufacturing term, you could consider it "stock" i.e. it isin
> > inventory, but it isn't WIP until a commitment is made andresources
> > are assigned to work on it.
> Suppose that thinking it up was costly. Would we still not list it
> as WIP? I think we would. Perhaps WIP is supposed to be measured in
> dollars or time, not number of items?
> Ron Jeffries
> Example isn't another way to teach, it is the only way to teach.
> --Albert Einstein
- Dollar Days is all about amplication. It's about improving signal to
noise ratio in management accounting. From the perspective of this
thread, it is largely irrelevant. We're deciding where to start the
WIP measurement and the lead time measurement.
--- In firstname.lastname@example.org, "Clarke Ching" <lists@c...>
> Ron wrote:number of
> >Perhaps WIP is supposed to be measured in dollars or time, not
> Goldratt recommends using "Dollar-days" to measure WIP in factories -
> taking into account both time and dollars. I've posted a note belowSoftware in
> describing Dollar-Days, which I originally sent to Kent Beck's
> Process yahoo group.