Pete DuBruhle

Synchronous Solutions

Use these simple metrics to make money today, and more money in the future.Times are tight right now in the countertop industry, and it’s a good time to look for leaks in the plumbing of your business. There are four main flows of money that need to be monitored and managed:

1. The Revenue stream (R) coming into the production system.

2. The Truly Variable Expenses stream (T.V.E.) exiting the system to buy materials.

3. The Throughput Dollars stream ($T) staying in the system to pay bills and contribute to profits.

4. The Operating Expenses stream (OE) exiting the system to pay bills.


I use this simple diagram to teach how a business makes money with the four streams: It’s the fifth stream of money, that which overflows the bucket and becomes profit, that is most compelling. It is the result of how well the other four steams are managed. Manage the other four streams correctly and the profits simply take care of themselves.

I use this simple diagram to teach how a business makes money with the four streams

The most important flow of money in the business is the stream labeled $T: the money that stays in the business to pay expenses (everything except material cost). When this stream exceeds the out flow of money represented by the bucket labeled OE (Operating Expense), the result is Net Profit. This means that generation of more profit requires more $T and or less OE. 

Of the two opportunities, the potential to reduce OE is very limited. What is the potential to increase $T?

$T is simply the R (revenue) stream minus the T.V.E. stream. To increase the $T stream, it is necessary to either increase the Revenue stream or decrease the TVE stream. The opportunities presented by these two streams couldn’t be more different. The upside to increasing Revenue is almost unlimited. The potential losses in the TVE pipe are very finite.

If the upside of the Revenue stream is almost unlimited, then so too is the $T stream. What limits the ability to capture $T is the capacity of the production system. 

In relative terms, the potential to increase Revenue and $T are huge, the potential to decrease TVE is small, while the potential to reduce OE is extremely small.

If profits are not where you want them, where should you focus?

There is a reason the best countertop software products like ActionFlow and Stone App integrate $Ts into their software. There is no number in a fabrication business that is more important to manage.


The four most critical Key Performance Indicators (KPIs) of a business are derived from $T, and help answer four key questions:

  1. $T per day – Is there enough $T flowing to fill the OE bucket and meet NP goals?

  2. $T per Constraint minute – Is it flowing at a fast enough rate through the Constraint to meet $T per day goals given the available Constraint minutes?

  3. $T Ratio ($T/R) – Is Revenue being converted into $T efficiently by making good use of material?

  4. Productivity Score ($T/OE) – Is the business using OE (people and equipment) efficiently?


These four points are listed in their order of importance. Apply the company’s scarce resources accordingly.

  • Marketing and Sales must focus on bringing in the Revenue that most efficiently converts to more $T.

  • Production must be focused on increasing Constraint capacity while ensuring all non-constraint processes have sufficient extra capacity to never hold up or limit the Constraint.

  • Production must be maximizing material usage.

Determined focus on, and improvement of these simple metrics will ensure your business will “make money today, and more money in the future”.


Peter DuBrule  
– Synchronous Solutions

We help clients control the flow of information and materials through their system to increase profitability, decrease process times, and reduce chaos.”Contact us at www.synchronoussolutions.com .