This book shows how companies of various sizes have aligned accounting measurements and policies with TOC implementations - and cleared a major roadblock toward adoption of TOC guidelines.
The leading authority on Throughput/Theory of Constraints (TOC) Accounting explains how companies of various sizes have aligned accounting measurements and policies with TOC implementations - and cleared a major roadblock toward adoption of TOC guidelines. Techniques that Smith has suggested, implemented, and tracked at various companies highlight The Measurement Nightmare, especially the Day to Day tools she developed to ensure successful implementation.
Today\'s competitive environment requires that companies distinguish themselves in the marketplace using factors other than prices. Companies that excel at on-time delivery, short cycle/leadtime, quality, and fast response to the market gain a competitive edge - and have the ability to market based on these features. A proven approach to achieve this is the Theory of Constraints (TOC) production solution known, as drum-buffer-rope scheduling. Just in time (JIT), Total Quality Management (TQM) and other philosophies aim at exploiting these competitive edge factors.
However, accounting systems, financial, and incentive measurements continue to be the biggest stumbling blocks to companies wishing to improve their financial performance with these tools. Agreement on the need for a measurement system that encourages local actions in line with bottom line results is common, but solutions have remained elusive. Whether a company is pursuing JIT, TQM, or TOC, cost accounting is the common enemy. Attempts have been made to introduce new costing methods such as activity based costing and economic value added, but they have failed to recognize the basic difference between product costing for financial statement purposes and collective management information to make real time decisions.
The Measurement Nightmare shows you how to resolve the conflicts and remove the accounting systems, financial, and incentive measurement roadblocks to adopting TOC, thereby gaining improved performance and sustaining competitive advantage. The techniques that the author, leading authority Debra Smith, has implemented and tracked at various companies highlight the productivity measurement nightmare. Especially important are the day-to-day tools she developed to ensure successful implementation.
Table of Contents
Any and all the information collected on this site will be kept strictly confidential and will not be sold, rented, or loaned to third parties!
Any information you provide will be held with the utmost care and will not be used in ways that you have not consented to.
If you have any questions, please feel free to call or email us.