The Measurement Nightmare: How the Theory of Constraints Can Resolve Conflicting Strategies, Policies, and Measures (St. Lucie Press/Apics Series on Constraints Management,)

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. booknews shows How To Use The Theory Of Constraints To Solve Conflicts Between Local And Global Optimization Goals For Improved Performance, And Explains How To Align Executive Strategy And Decision Making With Both Short- And Long-term Results For Improved Incentive Plans. Explores Basic Financial Strategic Decisions From A Theory Of Constraints And Direct Costing Approach, And Illustrates Varied Consequences Of Different Costing Approaches. The Author Is A Partner With An International Partnership Committed To Helping Organizations Use Solutions Offered Through The Theory Of Constraints. Annotation C. Book News, Inc., Portland, Or (booknews.com) 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. Front Cover 1 Introduction 7 The Author 17 Contents 19 Chapter 1 - Unbelievable Decisions by Companies You Would Know if I Could Name Them 23 Chapter 2 - The Measurement Nightmare 43 Chapter 3 - Theory of Constraints: The Evolution of a Revolution 53 Chapter 4 - How We Got into this Accounting Measuring Mess 65 Chapter 5 - Drum-Buffer-Rope Basics and Predictable Implementation Effects 85 Chapter 6 - New Manufacturing Floor Measures and Reporting 99 Chapter 7 - New Measures for Operations: Subordination 111 Chapter 8 - The Bridge Between Throughput and GAAP Financial Statements 129 Chapter 9 - Four Basic Strategic Decisions from a Theory of Constraints/Management Accounting Standpoint 137 Chapter 10 - Aligning Strategy in the Organization 153 Appendix. Strategic Thinking Processes of the Theory of Constraints 165 Back Cover 199 "Key Features: shows how to use the Theory of Constraints to solve conflicts between local and global optimization goals for improved performance; explains how to align executive strategy and decision making with both short - and long-term results for improved incentive plans; explores four basic financial strategic decisions from a Theory of Constraints and direct costing approach and illustrates the varied consequences of different costing approaches; exposes the simple bridge to convert a direct costing system to absorption costing to satisfy GAAP and external reporting requirements; and provides case studies in support of each chapter's discussion."--Jacket Unbelievable Decisions by Companies You Would Know if I Could Name Them The Measurement Nightmare Theory of Constraints: The Evolution of a Revolution How We Got in This Accounting Measuring Mess Drum-Buffer-Rope Basics and Predictable Implementation Effects New Manufacturing Floor Measurements and Reporting New Measures for Operations: Subordination The Bridge Between Throughput Accounting and GAAP Financial Statements Four Basic Strategic Decisions from a Theory of Constraints/Management Accounting Standpoint Aligning Strategy in the Organization Filled with tools that ensure the successful implementation of TOC, this book shows readers how to resolve the conflicts and remove the accounting systems, financial, and incentive measurement roadblocks to adopting TOC. It explains how to align executive strategy and decision making with short- and long-term results for improved incentive plans.