by Paul Simister
on November 9, 2016
In my review of the book
Accounting For Throughput
by David Dugdale and T Jones posted on Amazon.co.uk, I gave it Three Stars. This means Worthwhile.
Here is my review.
An early look at Accounting for Throughput consistent with the Theory of Constraints
This book is now 20 years old.
It was written at a time when there was plenty of criticism of traditional absorption based costing from
- Theory Of Constraints (TOC) advocates,
- from those who believed in Activity Based Costing and
- those who believed that there was too much focus on financial performance when non-financial performance indicators would chart progress better.
This presents the TOC side of the argument where it is believed that the main purpose is to support actions that will increase throughput (at that time sales revenue minus direct material costs) rather than the old “cost world” which aimed to reduce costs and improve (false) efficiencies.
The fact that fixed and variable cost production overheads need to be included in stock and work in progress valuations for statutory accounts for Companies House and HMRC because that’s what the accounting standards say means that Throughput Accounts and Absorption Cost Accounts need to be reconciled. The first is used to guide internal decision making whilst the second is used to report progress to the outside world.
It does a good job of summarising the situation at that time including a detailed look at one company in the UK that had implemented Eli Goldratt’s product planning software, taken up his ToC ideas and found their traditional costing system a barrier to progress.
It presents a balanced case highlighting the void around department measures when the old costing reports were removed and works supervisors were no longer judged on efficiencies compared to standard costs.
Back when it first came out, I would have probably rated this as at least a 4 star book. However 20 years have past and ToC has developed as it has been implemented in more businesses. Accounting for ToC will have also moved forward so this book only tells the first half of the story, even if it has the main plot lines. That’s cost it a star when I rate it in but I still think it’s worth reading if you’re interested in introducing a style of Throughput Accounting.
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by Paul Simister
on November 8, 2016
In my review of
Pinocchio Becoming Human with the Theory of Constraints
by Seong Am Moon, Dong Jin Kim and Aaron Rae Stephens posted at Amazon.co.uk, I gave it 1 Star.
Here is my review.
Sorry but I don’t think this concept works
I’m mystified why the authors thought this book would be a good idea. [continue reading…]
by Paul Simister
on November 8, 2016
In my review of the book
5 Steps to Continuous Improvement by Allen Pratt
posted on Amazon.co.uk, I gave it 2 Stars.
Here is my review.
This should be free
Many business consultants and coaches offer a free report to sample their advice.
This book about the Theory of Constraints Five Steps Process is that kind of report. It is only 11 pages long and the author shares some of his experiences tackling constraints but instead of giving it to you for free, the author is asking you to pay for it unless you have Kindle Unlimited.
I can’t argue much with what’s here but I’m struggling to see the benefits of reading it. If you’ve already read The Goal: A Process of Ongoing Improvement then you won’t learn much other than about the author. If you haven’t read “The Goal” and you want to know about the Theory of Constraints, then there’s no better place to start.
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by Paul Simister
on November 8, 2016
The full title of this book by Jack Hardy is
Core Value Proposition: …A powerful tool that provides a customer focus to your business development
In my review posted on Amazon.co.uk, I gave it Three Stars.
Here is my review.
Build your core value proposition up from five factors
This book makes the point that a core value proposition is a combination of:
– core values that are the basis for everything the business does;
– value proposition as a promise of particular values made to and believed by customers. [continue reading…]
by Paul Simister
on November 5, 2016
The full title of this book by John Arthur Ricketts is
Reaching The Goal: How Managers Improve a Services Business Using Goldratt’s Theory of Constraints
In my review posted on Amazon.co.uk, I gave it 3 Stars.
Here is my review.
A complicated book suitable for very big companies
To understand my review, you will need to understand my interest. I work with business owners to help them get unstuck and one of the methodologies I use is the Theory of Constraints. [continue reading…]
by Paul Simister
on November 5, 2016
The full title of this book by Yann Ginon is
Continuous Improvement to Company Financial Performance The Human Factor: Understand and deploy Value Stream Mapping, Theory of Constraint and Lean6Sigma to transform your company into a cash machine
In my review posted on Amazon.co.uk, I gave the book One Star.
Here is my review.
The author should start again
About 25 years ago I read The Goal by Eliyahu Goldratt and thought the way novel business ideas were woven into a compelling story was brilliant.
Since then, I’ve read a few more of these business novels but none have matched the lasting impression of “The Goal” but never before have I seen the concept reduced to gibberish. [continue reading…]
by Paul Simister
on October 31, 2016
The full title of this book by Yishai Ashlag is
TOC Thinking: Removing Constraints for Business Growth
In my review posted on Amazon.co.uk, I gave the book Three Stars. This means Worthwhile.
Here is my review.
A nice introduction to TOC but anyone with much knowledge of TOC won’t get much out of it
The author makes it clear that he’s trying to explain the underlying thinking behind the Theory of Constraints and Eliyahu Goldratt’s books rather than trying to summarise the concepts.
It’s well written and easy to read. It also contains what I suspect will be a few aha moments for people who haven’t read the main books. [continue reading…]
by Paul Simister
on October 27, 2016
The full title of the book by Elliot Wagonheim is
Fire, Aim…Ready: Management: The Start at the End Approach to Crushing Competition, Crafting Culture, and Cementing Relationships
In my review posted on Amazon.co.uk, I gave it 3 Stars.
Here is my review.
What stories do you want your customers and employees to tell about your business?
I’m been aware of the old planning adage that “you should start with the end in mind and work backwards” for many years. It’s a very useful way to look at things and sometimes I work both ways. [continue reading…]
by Paul Simister
on October 17, 2016
The full title of this book by by Richard G. Lewis is
Customer Avatar: Define Your Ideal Customer Profile
In my review posted on Amazon.co.uk, I gave it Three Stars.
Here is my review.
A short summary that introduces the idea rather than being a definitive source
This short book looks at how to create a customer profile or avatar for the best customer in your market and in particular uses the Facebook Audience Insights to get information. [continue reading…]
by Paul Simister
on October 15, 2016
The full title of this book by Sarah Arrow is
Zero to Psychographics: Your guide to uncovering your target audience using psychographics
In my review posted on Amazon.co.uk, I gave it Three Stars. This means Worthwhile.
Here is my book review.
A short introduction that’s quite technical
It’s common sense but your potential market is made of up many different types of people in different situations and with different goals and motivations.
When you’re in a one-to-one selling situation, some of the differences are easy to identify (sex, age etc) and some well thought through questions and careful listening can help you clarify exactly what is likely to drive a particular person to need, want and therefore consider buying your product or service. [continue reading…]
