Constraints accounting

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Constraints accounting (CA) is an accounting reporting technique, consistent with a process of ongoing improvement (POOGI). It is an implementation of the Theory of Constraints. It is a development of throughput accounting.

CA includes:

  1. explicit consideration of the role of constraints,
  2. specification of throughput contribution effects, and decoupling of throughput (T) from operating expense (OE).

[edit] References

John A. Caspari, Pamela Caspari. Management Dynamics: Merging Constraints Accounting to Drive Improvement. ISBN 0-471-67231-9


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