The Theory of Constraints and its Implications for Management Accounting

Title: The Theory of Constraints and its Implications for Management Accounting
Author: Eric Noreen, Debra Smith, and James T Mackey
Publisher: The North River Press
Copyright: 1995
ISBN: 0-88427-116-1


I recommend this book.

This is a somewhat dated but still very relevant summary of the Theory of Constraints (TOC) first introduced by Eliyahu Goldratt in “The Goal”. The basic concepts reviewed are:

• Throughput Accounting (TA)
• Managing Constraints (Identify, Exploit, Subordinate, Elevate, Reiterate)
• Managing Non-constraints
• Drum-Buffer-Rope (DBR) scheduling
• The Thinking Process (TP)

The “Thinking Process” in particular seems to offer a new and promising problem solving structure. I plan it try it out over the next several months.

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