Customer Reviews

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

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4 star:		(2)
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As the CEO of a company who has invested much time and resources to the (TOC) Theory of Constraints Management Philosophy, one thing kept coming back around to frustrate our implementation efforts. It was that of making the bridge from our current methods of measuring our performance and GAAP accounting system to that of TOC measures and TOC accounting. By this book, Debra Smith has given us the tools to do just that. I was sufficiently impressed with the contents, that I made it mandatory reading for all managers, from the CFO down to the shop foreman. This single book has managed to succulently illustrate what it took volumes in other publications to do. In short I highly recommend, and consider it must reading for both beginning and seasoned proponents of the Theory of Constraints Management Philosophy.

This is far and away the most entertaining managerial accounting text ever written. Smith illuminates the flaws in traditional accounting measures with humorous (unless they happen to you), real disaster stories. Each story includes explanations of the classical accounting analysis (or misguided blind pursuit of efficiency) which caused the disaster and a discussion of more appropriate metrics.

That people often let the way employers measure them influence their on the job behavior is a double edged sword. People measured stupidly just may behave stupidly (because the stupid measures will punish them if they behave wisely). Any CFO or managerial accountant who does not thoroughly understand this book may, with all the best intentions, put her/his entire organization at risk. The disaster stories lose some humor in the first person.

Read it because its fun. Apply it because it works.

This remarkable book manages to cover a wide array of topics (TOC, metrics, accounting and GAAP compliance and implementation and strategy issues)in approximately 200 pages and still impart a deep message. The message is not subtle - don't be a lemming just because 'you've always done it this way'. Actually, the message is much deeper and also encompasses how to measure the right things.

What I like most is the fact that the author can write clearly and hold your attention while at the same time providing you with enough information to cause you to rethink the way you're currently doing business - and giving you a clear path to doing it better. The book starts out with eye-opening stories from the author's past experience of companies what were measuring the wrong things based on myopia. She then introduces TOC, discusses how traditional accounting metrics and indicators can be aligned to TOC, and goes deeper into TOC with a direct emphasis on how it relates to accounting methods. From there the book goes into TOC metrics and how to align them to GAAP financial statements. This short book wraps up with excellent implementation advice that is based on a strategic approach.

Overall, this book is easy to read, but is rich with information beyond what one would expect is such a short book. The author backs up her proposed approach with real life experience and compelling facts that are logically presented and based on hard numbers, and is an obvious expert in both accounting and TOC.

Debra Smith has done an excellent job explaining TOC. The many examples bring to life TOC in a refreshing way.

The book focusses on the root problem behind all those dysfunctional metrics around us. It explains very clearly (also for people not trained in financial jargon) how the wrong focus on the wrong metrics in the top of the organization can have impact on the complete organization and may impact negatively the quality of decisions throughout the company.

Very much recommended!

This is an excellent book if you are serious about TOC. It covers the basic how-to subjects currently in the liturature, and goes into new territory showing how to reconcile Management/Throughput Accounting with GAAP Acounting. Despite the great material I have two complaints: 1) The book is difficult to read due to the small font and wordy style 2) The book fails to recognize the existance of Lean Manufacturing and Six-Sigma tools that could break the dilemia presented about sprint capacity and buffer size. The second issue is one that any experience practitioner of Lean/6-sigma will easily recognise and correct.

Aborda con una claridad y sencillez pasmosas un tema del que prácticamente no existen referencias escritas. El apéndice dedicado al empleo de los procesos de razonamiento en la estrategia es una auténtica delicia. Creo sinceramente que se trata de una lectura obligada para todos aquellos interesados en las aplicaciones de TOC no sólo en el desarrollo de los sistemas de información de las organizaciones sino de la propia estrategia.

This is a grate book that explains how measurment indicators might confuse management, and make mistakes that really happen in buissness. In states several measurment indicators based on TOC that help in understanding what should be done in the company.

Very good book, but if you want to learn about TOC, you should stack it with other TOC books.

Debra knows and applies TOC as well as anyone including Goldratt. This book is still a key part to understanding TOC.

Debra has done a nice job with this book. I would recommend it to anyone interested in learning more about Theory of Constraints.