Table of contents:
About The Author.

Preface.

1) Overview of the Theory of Constraints.

• Definitions for the Operational Aspects of the Theory of Constraints.
• The Operational Aspects of the Theory of Constraints.
• Nature of the Constraint.
• Definitions for the Financial Aspects of the Theory of Constraints.
• The Financial Aspects of the Theory of Constraints.
• The Opportunity Cost of Operations.
• Summary

2) Constraint Management in the Factory.

• Locating the Constraint.
• Management of the Constrained Resource.
• Types of Policy Constraints.
• The Constraint Buffer.
• The Assembly Area Buffer.
• Production Scheduling.
• Batch Sizes.
• Machine Setups—Sales Perspective.
• Machine Setups—Reduction Efforts.
• Summary.

3) Throughput and Traditional Cost Accounting Concepts.

• The Emphasis on Cost versus Throughput.
• The Emphasis on Product Cost versus System Profitability.
• Variations in the Treatment of Low-Margin Products.
• The Emphasis on Burdened versus Throughput Pricing.
• Variations in Scrap Reporting.
• Variations in Variance Analysis.
• The Treatment of Direct Labor.
• Inventory Valuation.
• Activity-Based Costing versus Throughput Accounting.
• Direct Costing versus Throughput Accounting.
• Summary.

4) Throughput and Financial Analysis Scenarios.

• The Basic Throughput Analysis Model.
• The Low Price, High Volume Decision.
• The Low Price for Export Market Decision.
• The Outsourced Production Decision.
• The Increased Downstream Capacity Decision.
• The Increased Upstream Product Processing Decision.
• The Increased Sprint Capacity Decision.
• The Additional Quality Workstation Decision.
• The Increased Constraint Staffing Decision.
• The New Product Addition Decision.
• The Product Cancellation Decision.
• The Altered Product Priority Decision.
• The Raw Material Constraint Decision.
• The Constraint in the Marketplace Decision.
• The Plant Closing Decision.
• Underlying Concepts of the Throughput Analysis Model.
• Summary.

5) Throughput in the Budgeting and Capital Budgeting Process.

• Capital Budgeting with Throughput Accounting.
• Budgeting for Revenue with Throughput Accounting.
• Budgeting for New Products with Throughput Accounting.
• Budgeting for Operating Expenses with Throughput Accounting.
• Budgeting for Production Labor Expenses with Throughput Accounting.
• Budgeting for Sales Department Expenses with Throughput Accounting.
• Summary.

6) Throughput and Generally Accepted Accounting Principles.

• The Nature of Generally Accepted Accounting Principles.
• Differences Between Throughput and GAAP Accounting.
• Income Statements for Throughput Accounting and GAAP.
• Modifying the Chart of Accounts for Throughput Accounting.
• Reconciling Throughput Accounting to GAAP.
• Throughput Accounting and Cost-Plus Contracting.
• Summary.

7) Throughput and Control Systems.

• Constrained Resource Controls.
• Buffer Controls.
• Production Scheduling Controls.
• Summary.

8) Throughput and Performance Measurement and Reporting Systems.

• Ratio of Throughput to Constraint Time Consumption.
• Total Throughput Dollars Quoted in the Period.
• Ratio of Throughput Dollars Quoted to Throughput Firm Orders Received.
• Sales Productivity.
• Ratio of Throughput Booked to Shipped.
• Trend Line of Sales Backlog Dollars.
• Ratio of Maintenance Downtime to Operating Time on Constrained Resource.
• Throughput of Post-Constraint Scrap.
• Constraint Utilization.
• Constraint Schedule Attainment.
• Manufacturing Productivity.
• Manufacturing Effectiveness.
• Order Cycle Time.
• Throughput Shipping Delay.
• Inventory Turnover.
• Return on Investment.
• Throughput Contribution Report.
• Buffer Management Report.
• Buffer Hole Percentage Trend Report.
• Misleading Measurements and Reports.
• Summary.

9) Throughput and Accounting Management.

• Throughput Analysis Priorities.
• The Subordination Concept.
• The Duration of Capacity Constraints.
• The Inventory Build Concept.
• The Capacity–Buffer Interrelationship.
• Investment Analysis.
• Price Formulation.
• Transfer Pricing.
• Cost Reporting.
• Staffing Decisions.
• The Problem with Using Throughput Accounting for Tactical Changes.
• Throughput Software and Makeshift Systems.
• Summary.

10) Throughput Case Studies.

• Summary.

Index.