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Management Dynamics: Merging Constraints Accounting to Drive Improvement

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Exhaustive in its coverage, this book answers many questions I had after reading the works of Corbett, Smith & Noreen, Srikanth & Robertson, and Goldratt. It includes an analysis of project management, sales, people, and strategy (in addition to standard DBR) as it relates to traditional Throughput Accounting and the newer Constraints Accounting.

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.

Although I anticipate future additions to the body of Throughput/Constraints Accounting knowledge, Caspari has reinvigorated this increasingly stale and still under-developed (albeit highly preferable) alternative to traditional cost and activity based accounting. Having read every book available on the topic, I can say that Caspari's "Management Dynamics" tops even Debra Smith's excellent "The Measurement Nightmare".

If you were looking for a complete and exhaustive explanation of the Theory of Constraints and the relative accounting system, this is your book.
Elegant and simple, it covers everything with a systematic theoretical approach, making it clear with plenty of examples.