13 - Problems of Traditional Measures in Finance and Accounting

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McGraw Hill Professional, Apr 8, 2010 - Business & Economics - 1216 pages
The definitive guide to the theory of constraints

In this authoritative volume, the world's top Theory of Constraints (TOC) experts reveal how to implement the ground-breaking management and improvement methodology developed by Dr. Eliyahu M. Goldratt. Theory of Constraints Handbook offers an in-depth examination of this revolutionary concept of bringing about global organization performance improvement by focusing on a few leverage points of the system. Clear explanations supplemented by examples and case studies define how the theory works, why it works, what issues are resolved, and what benefits accrue, and demonstrate how TOC can be applied to different industries and situations.

Theory of Constraints Handbook covers:

  • Critical Chain Project Management for realizing major improvements in delivering projects on time, to specification, and within budget
  • Drum-Buffer-Rope (DBR), Buffer Management, and distribution for maximizing throughput and minimizing flow time
  • Performance measures for applying Throughput Accounting to improve organizational performance
  • Strategy, marketing, and sales techniques designed to increase sales closing rates and Throughput
  • Thinking Processes for simple and complex environments
  • TOC methods to ensure that services actions support escalating demand for services while retaining financial viability
  • Integrating the TOC Thinking Processes, the Strategy and Tactic Tree, TOC measurements, the Five Focusing Steps of TOC, and Six Sigma as a system of tools for sustainable improvement
 

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Contents

Introduction
335
Traditional Cost Accounting and Business Environment
336
Accountings Response to a 20th Century Changing Environment
338
TOC Approach to Planning Control and Sensitivity Analysis
346
Possible Explanations for the Lack of TOC Literature in Accounting and Finance
364
Future TOC AccountingFinance Research Needs
365
Summary and Introduction of Remaining Chapters in This Section
366
References
367
About the Author
371
Copyright

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About the author (2010)

Charlene Spoede Budd, PhD, CPA, CMA, CFM, PMP, JONAH’S JONAH, holder of TOC-ICO certifications in all areas of TOC. She is Professor Emeritus of Baylor University’s Hankamer School of Business and held the Emerson O. Henke Chair of Accounting. She has been as associate of The A. Y. Goldratt Institute, currently is an associate of the Continuous Process Improvement Symposiums, and has co-authored two editions of a book on earned value project management. Janice F. Cerveny, Ph.D. and Jonah’s Jonah, is one of the faculty of Florida Atlantic University’s College of Business teaching both operations management and strategy courses in the undergraduate and MBA programs. She’s TOCICO certified in all logistical applications and is an active consultant in those areas. She’s a former associate of the Goldratt Institute and is chair of the TOCICO Project Management Certification Committee and author of several articles regarding Critical Chain Project Management.

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