CONTINUING EDUCATION FOR TAX & FINANCIAL PROFESSIONALS

Constraint Management

Icon_Self-Study
QAS Self-Study
Icon_Level
Overview
Credits
CPE Credits
10 Credits: Production

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.

Learning Objectives

After completing this section of the course, you will be able to:

  • 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
  • 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
  • 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
  • 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
  • Identify how the SEC issues accounting guidance
  • List similarities in guidance on manufactured goods between GAAP and IFRS
  • Cite an example of variable overhead
  • 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
  • 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
  • Name an event that might trigger a controls review
  • List reasons for using controls and which controls are most useful
  • 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
  • Define rolling forecast
  • Specify the basis for bonus compensation
  • Identify where increases to throughput occur
  • 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
  • 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
  • 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
  • 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

Course Specifics

Course ID
622266431
Revision Date
October 11, 2022
Prerequisites

There are no prerequisites.

Advanced Preparation

None

Compliance information

NASBA Provider Number: 103220

CMA Notice: Western CPE makes every attempt to maintain our CMA CPE library, to ensure a course meets your continuing education requirements please visit Insitute of Management Accountants (IMA)

Course Instructor

Steven M. Bragg Headshot
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 …

Steven M. Bragg, CPA Read More »

Constraint Management

Expert Instructors
CPE CREDITS
10 Credits: Production

$290.00$320.00

Clear
Icon_Self-Study
QAS Self-Study
Icon_Level
Overview
Credits
CPE Credits
10 Credits: Production

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.

Learning Objectives

After completing this section of the course, you will be able to:

  • 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
  • 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
  • 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
  • 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
  • Identify how the SEC issues accounting guidance
  • List similarities in guidance on manufactured goods between GAAP and IFRS
  • Cite an example of variable overhead
  • 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
  • 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
  • Name an event that might trigger a controls review
  • List reasons for using controls and which controls are most useful
  • 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
  • Define rolling forecast
  • Specify the basis for bonus compensation
  • Identify where increases to throughput occur
  • 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
  • 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
  • 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
  • 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

Course Specifics

Course ID
622266431
Revision Date
October 11, 2022
Prerequisites

There are no prerequisites.

Advanced Preparation

None

Compliance information

NASBA Provider Number: 103220

CMA Notice: Western CPE makes every attempt to maintain our CMA CPE library, to ensure a course meets your continuing education requirements please visit Insitute of Management Accountants (IMA)

Course Instructor

Steven M. Bragg Headshot
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 …

Steven M. Bragg, CPA Read More »

Constraint Management

Expert Instructors
CPE CREDITS
10 Credits: Production

$290.00$320.00

Clear