Management Dynamics: Merging Constraints Accounting to Drive Improvement

Management Dynamics
Wiley | 2004-09-13 | ISBN: 0471672319 | 327 pages | PDF | 1,5 MB

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.

An entire chapter is spent on pricing alternatives to the standard 'fully absorbed cost plus a reasonable margin' that far surpasses the standard Throughput per Constraint Unit of Time model; instead attempting to provide a means to decouple Throughput (T) from Operating Expense (OE) and Investment/Inventory (I) in order to drive continuous improvement. It also spends ample time discussing pricing in a market constrained environment, a situation more common then not.



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