There are no prerequisites.

Course Description

The financial results of a business are strongly influenced by its constraint. A constraint is the bottleneck that restricts an organization from achieving its goals. Without proper attention to the constraint, investments seem to have no effect, expense reductions cause profits to decline, and delivery dates continually slip. Constraint Management reveals how to overcome these issues through proper utilization of the bottleneck. This involves designing the entire organization to support the constraint, which requires alterations to staffing, inventory positioning, investments, controls, measurements, and more.

Constraint Management is intended for anyone involved in financial analysis, accounting, and production management. It can also be useful for those in executive positions who are searching for a better way to run their organizations.


Steven M. Bragg, CPA

Steven M. Bragg, CPA, is a full-time book and course author who has written more than 70 business books. He provides Western CPE with self-study courses in the areas of accounting and finance, with an emphasis on the practical application of accounting standards and management techniques. A sampling of his courses include the The New Controller Guidebook, The GAAP Guidebook, Accountants’ Guidebook, and Closing the Books: An Accountant’s Guide. He also manages the Accounting Best Practices podcast.

Steven has been the CFO or controller of both public and private companies and has been a consulting manager with Ernst & Young and an auditor with Deloitte & Touche. He holds an MBA from Babson College, a Master of Finance from Bentley College, and a BA from the University of Maine (summa cum laude).

Course Specifics

Feb 18, 2020
There are no prerequisites.

Compliance Information

Qualifies for CA Fraud: No

Learning Objectives

Upon successful completion of this course, participants will be able to:

Chapter 1

  • Identify common assumptions of a traditional management system
  • Determine what is likely to happen when all resources are optimized
  • List items necessary to calculate throughput
  • Name an example of local optimization 

Chapter 2

  • Identify the presence of a constraint and how it can be designated
  • List ways to deal with employee turnover as a constraint
  • Define the expedite zone and its purpose

Chapter 3

  • Identify why adding staff may not increase sales and what hiring practices can help
  • List a key problem that causes delays in projects
  • Specify where the time buffer of a project should be located

Chapter 4

  • Cite the result of a culture of cost reduction
  • Specify why direct labor is not a variable expense
  • Identify why scrap is more expensive if discovered after the constraint

Chapter 5

  • Identify how the SEC issues accounting guidance
  • List similarities in guidance on manufactured goods between GAAP and IFRS
  • Cite an example of variable overhead

Chapter 6

  • List measurements used to measure relationships between throughput and constraints
  • Define the term for the amount of inventory buffer in use at any time
  • Cite problems with the traditional inventory turnover calculation
  • Name a harmful measure that is sometimes used to make business decisions

Chapter 7

  • Identify costs to be excluded from product cost analysis
  • List a cost unique to the sales channel
  • Define the cost object associated with returned goods and early payment

Chapter 8

  • Name an event that might trigger a controls review
  • List reasons for using controls and which controls are most useful

Chapter 9

  • Cite the type of project that would not be used on a capital request form
  • List problems with top-down and bottom-up approached to revenue estimation
  • Calculate direct labor using the crewing method
  • Identify where support for the constraint concept comes from

Chapter 10

  • Define rolling forecast
  • Specify the basis for bonus compensation
  • Identify where increases to throughput occur

Chapter 11

  • Identify the key limiting factor in a constraint
  • Cite ways that a business's financial results can be enhanced
  • Classify the type of pricing that absorption pricing is

Chapter 12

  • Identify the type of customers that are desirable in a constraint-based pricing environment
  • Cite a solution for lengthy setup times at a constraint
  • Specify the effect of having a constraint in the marketplace

Chapter 13

  • Cite which factor should be used to determine which investments to make
  • Specify constraint management tactics for volatile industries
  • Cite when competition is likely to cut prices in response to your own reduction

Chapter 14

  • Identify when a speed of delivery strategy is most useful
  • Cite situations when constraint management is effective in the acquisition process
  • Specify when organizations in financial distress may choose to implement constraint management

Choose Your Preferred Format

Online Access

Get immediate access to a robust collection of learning and reference materials, allowing you to dive deep into the information you need. Our self-study materials are authored by top-quality, industry experts who focus on helping you grasp concepts quickly using real-life examples. Download your CPE to any device, and take it with you so you can learn when and wherever you want. Complete your CPE with an online exam, and enjoy instant grading with the option to print your certificate immediately upon passing.

online access
Hard Copy

Our self-study materials are authored by top-quality, industry experts. You’ll receive a bound notebook of all the course materials, shipped to you within one business day. In addition, you’ll also have full online access. Each self-study package includes a robust collection of learning and reference materials to help you cover the information efficiently and put it into practice immediately.

hard copy
Self-Study Video

Experience high-quality instruction with our Self-Study Videos, available to you 24/7. With more than 80+ videos currently in the Western CPE Self-Study Video library, you can see and hear our expert instructors deliver the information you need in a dynamic way that allows you to immediately apply your learning. Unlike a live course or webcast, you can complete the course on your own time, playing and pausing as needed. Self-Study Videos allow you to complete your CPE requirements on your own time.

hard copy

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