Synopses & Reviews
"If youre an accounting or management professor who is tired of seeing a continuous stream of traditional cost accounting textbooks and frustrated by accounting methods based on obsolete concepts, youll be very impressed with the fully articulated, workable approach and accounting methodology this book provides. It addresses virtually every dilemma in the modern accounting world with solutions that are elegant, rigorous, and direct. Best of all, its teachable!"
Melvin J. Anderson, PhD, Professor of Management
Embry-Riddle Aeronautical University
"We have been missing a vital piece from constraints management: how to communicate the critical importance of the Archimedean constraints to finance. Constraints accounting finally provides the means to do this through the constraints accounting earnings statement, performance profit, and a new strategy for product pricing, thereby ensuring goal congruence and a robust process of substantial and ongoing improvement."
Kelvyn Youngman, PhD, TOC practitioner
New Zealand and Japan
"This bold and scholarly work is a significant contribution to two disciplines: constraint management and managerial accounting. The constraints accounting measurement principles prescribed by John and Pamela Caspari in this excellent book provide a solid set of tools for improving management performance, achieving competitive advantage, and providing clear guidance for avoiding wrong-headed measurements that can lead an enterprise off course."
Paul D. Dozier, President and CEO
Dozier & Associates Consulting
"All good managers intuitively know that increasing throughput results in more profit to the organization, but current cost accounting measures emphasize cost reduction. John and Pamela Caspari provide another look at the data to show us a better way to make business decisions. This is the Theory of Constraints book written for any business leader who is watching the numbers."
David Kaser, Six Sigma Master Expert
Raytheon
Synopsis
This book is a comprehensive introduction to the Theory of Constraints (TOC) in profit-oriented organizations. Focusing on practical dynamic solutions for weak links in the organizational tangle of chains, Constraint Management reveals how problems arise from the lack of global goal congruence and how a fair incentive compensation plan can align the goals of individuals in all functional areas and at all organizational levels with the shareholder goal of greater profitability.
Synopsis
Here's an in-depth, step-by-step analysis defining the critical ingredients essential to achieving ongoing improvement and a robust bottom line!Focusing on practical, dynamic solutions for weaknesses in the interdependent parts of an organization, Management Dynamics provides a comprehensive introduction to the Theory of Constraints (TOC) in profit-oriented organizations, complete with the crucial but oft-missing pieces of the constraint theory–a fully integrated and supporting accounting system and the dynamic motivator to drive ongoing improvement in the bottom line.
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Synopsis
Organizations have found that a continuous state of improvement and growth that shows up on the bottom line is a gargantuan task, and requires an understanding that definitive success demands a company-wide holistic approach. Management Dynamics is an in-depth, step-by-step analysis defining the critical ingredients essential to achieving ongoing improvement and a robust bottom line.
Focusing on practical, dynamic solutions for weaknesses in the interdependent parts of an organization, Management Dynamics provides a comprehensive introduction to the Theory of Constraints (TOC) in profit-oriented organizations, complete with the crucial but oft-missing pieces of the constraint theorya fully integrated and supporting accounting system and the dynamic motivator to drive ongoing improvement in the bottom line.
Management Dynamics facilitates a smooth integration of covered material with an organizations existing practices by building on existing constraint management approaches. It identifies the problems that arise from a lack of global goal congruence and demonstrates how to use a fair incentive compensation plan to align the goals of all functional areas and organizational levels with the shareholders goal of greater profitability.
Weaving each aspect of implementation to reflect the global goal of an organization, Management Dynamics features materials on:
- Budgetary control
- Pricing
- Simplified critical chain
- New ways to use sales funnels in the management tool kit
- Incentive compensation
Complete with hundreds of informative illustrations and tables, Management Dynamics is an enlightening and useful guide for controllers, cost managers, and an organizations executive management and owners.
About the Author
JOHN A. CASPARI, PhD, CMA, an internationally recognized expert in constraints accounting, has spent the last decade as a consultant and educator working with and studying measurement issues associated with the Theory of Constraints (TOC). He has twenty years experience teaching managerial accounting, cost accounting, and accounting information systems at both the undergraduate and graduate levels. He is a "Jonahs Jonah" and certified in TOC holistic strategy, TOC finance and measures, and TOC thinking processes by the Theory of Constraints International Certification Organization. The author of numerous articles in such publications as Management Accounting Quarterly and Accounting Review, he was also a contributor to Management Accountants Handbook, Third Edition and Fourth Edition, and its 1993 supplement.
PAMELA CASPARI, an educator, consultant, Jonah, and professional writer, has spent the last eight years involved with in-depth research and critical analysis of measurement issues relating to constraint management and the Theory of Constraints. In addition, she conducts training courses in broad cross-sections of companies, using logical thought processes to improve communication, enhance knowledge of constraints, and employ successful conflict resolution techniques.
Table of Contents
Foreword.
Preface.
Acknowledgments.
Chapter 1. Thinking Bridges.
Evaluating Decision Alternatives.
Thinking Bridges Example.
Chapter 2. Constraints.
Two Paradigms.
Constrained Environments.
TOC Focusing Process.
Identifying Ongoing Improvement.
Chapter 3. Internal Financial reporting.
Early Throughput Accounting.
Cost Control in a Throughput World.
Constraints Accounting versus Throughput Accounting.
Complexity Divide.
Chapter 4. Motivation and the Budget.
Motivation for a Process of Ongoing Improvement.
Role of Financial Manager.
Establishing a Budgetary Revision and Reporting Process.
Chapter 5. Constraints Accounting Terminology and Technique.
Basic Financial Control Metrics.
Capital Write-Off Methods.
Exploitation Decisions.
Chapter 6. Pricing.
Cost-Based Pricing.
Constraint-Based Pricing.
Decoupling Throughput from Operational Expense.
Constraints Accounting Approach to Pricing.
Chapter 7. Tactical Subordination in Manufacturing.
Tactical Subordination.
Drum-Buffer-Rope Scheduling.
Buffer Management Reporting.
Chapter 8. Tactical Subordination in Project Management.
Common-Sense Scheduling.
Critical Path versus Critical Chain.
Project Management Constraints.
Subordination Reporting in Projects.
Critical Chain Buffer Reports.
Current Status of Critical Chain.
Simplified Critical Chain.
Chapter 9. Tactical Subordination in Sales.
Sales Funnels.
Sales Commissions.
Leveraging Constraints to Create Compelling Offers.
Chapter 10. People: A Valuable Asset.
Empowerment and Respect: Aligning Authority, Responsibility, and Long-term Commitment.
Personnel Employment Decisions.
Mixed Messages.
Chapter 11. Strategy and Conclusions.
Strategy.
Successful Constraint Management.
Appendix: Accounting System Structure.
Brief History of Cost Accounting.
Cost and Revenue Flows.
Constraints Accounting Similarities and Departures.
Glossary.
Index.