by Dr Lisa | cost accounting, theory of constraints, throughput accounting
We are continuing our series based on The Goal by Eliyahu M Goldratt and the Theory of Constraints. {This series was co-written with Brad Stillahn.}Brad: Who cares? Is this really that important? In the last 20+ years since Throughput Accounting was invented to...
by Dr Lisa | american manufacturing compeitiveness, cost accounting, machine shops, truly variable costs, tvc
We are continuing our series based on The Goal by Eliyahu M Goldratt and the Theory of Constraints. {This series was co-written with Brad Stillahn.} Cost accounting is alive and well in American business (and around the world really), even though it is an invalid, old...
by Dr Lisa | cost accounting, due date performance, goldratt, ineffectiveness, inventory dollar days, theory of constraints, throughput accounting, throughput dollar days, toc measures, unreliability
We are continuing our series based on The Goal by Eliyahu M Goldratt and the Theory of Constraints. {This series was co-written with Brad Stillahn.} Dr. Goldratt proposed that there are just two categories of things that can go wrong. One he calls unreliability and...
by Dr Lisa | Brad Stillahn, cost accounting, DBR, Dr Lisa Lang, eliyahu m goldratt, gaap, mafia offer, theory of constraints
What is the effect on the monthly Profit and Loss statement from this? Because cost accounting (and GAAP) requires that inventory absorb allocated costs, the effect is that all of the cost allocations from prior months that are attached to the inventory will be...
by Dr Lisa | cost accounting, drum buffer rope, effect of WIP, eli goldratt, mafia offer boot camp, theory of constraints, throughput accounting
Conventional cost accounting assumes that incremental and isolated cost improvements are productive and in support of an organization’s goals, and that global improvement equals the sum of local improvements. Since a conventional cost accounting system relies on...
by Dr Lisa | Brad Stillahn, cost accounting, Dr Lisa Lang, drum buffer rope, eliyahu m goldratt, the goal eliyahu m goldratt, theory of constraints, throughput accounting
“Cost Accounting: Public Enemy #1 of Productivity” Way back in 1983, prior to writing his popular business novel “The Goal”, Dr. Eliyahu M Goldratt gave a speech by this controversial and confrontational title at a conference of Management Accountants. However, it was...
