Home
0
Home
Use Landscape to see Search/Filter
Item Types:
Field of Study:
Authors:
CPE Hours:
Keyword:
Hide left panel Collapse Menu
Show left panel
Recent Searches
No recent searches found.
Recent Searches
No recent searches found.
Course Details

Constraint Management - A Financial and Operational Guide (Course Id 645)

Updated / QAS / Registry   Add to Cart 
Author : Steven Bragg, CPA
Status : Production
CPE Credits : 10.0
IRS Credits : 0
Price : $99.95
Passing Score : 70%
Primary Subject-Field Of Study:

Production - Management for Course Id 645

Description :

Constraint Management describes the impact of constraints on an organization, and how constraints can be managed to optimize profitability. The text includes discussions of where the constraint may be located, how constraint analysis compares to traditional cost accounting, and how to design measurement, reporting, and control systems around a constraint. There is also extensive treatment of financial modeling around constraints, as well as how to develop constraint-based strategies.

Usage Rank : 0
Release : 2017
Version : 1.0
Prerequisites : None.
Experience Level : Overview
Additional Contents : Complete, no additional material needed.
Additional Links :
Advance Preparation : None.
Delivery Method : Self-Study.
Intended Participants : Anyone needing Continuing Professional Education (CPE).
Revision Date : 02-May-2017
NASBA Course Declaration : Participants must complete the final examination within one year of purchase and with a minimum passing grade of 70% or better to receive CPE credit unless otherwise noted on the Course History page (i.e. California Ethics must score 90% or better). After logging in click on the Course History links on your My Courses page for the Begin date and Expire date for the Final Exam.
Approved Audience :

NASBA QAS - NASBA Registry - 645

Keywords : Production, Constraint, Management, Financial, Operational, Guide, cpe, cpa, online course
Learning Objectives :

Course Learning Objectives

  • Identify the negative issues related to local optimization, as well as the basic concepts of constraint management.
  • Recognize situations in which local optimization is being employed.
  • Cite the indicators of a constraint, as well as the means by which a constraint can be managed.
  • Recognize the existence of constraints in areas other than production, as well as the constraint issues involved in project management.
  • Note the circumstances under which the use of increased resources in the sales area will not increase sales.
  • State the negative effects of cost reduction efforts, the use of gross margins, and the mis-application of direct labor costs.
  • Identify the cost assignments required by the major accounting frameworks.
  • Cite the types of measurements that can be effective in managing a constraint and throughput.
  • Identify the components of the various cost object analyses.
  • State the reasons for using constraint controls, and note the best types of controls.
  • Note the project types used in capital budgeting, as well as the problems with the traditional methods used to derive a budget.
  • Cite the circumstances under which a constraint management environment is most likely to succeed.
  • Identify the key elements of a financial analysis that can improve the results of a business.
  • Recognize the types of pricing methodologies, and how constraint-based pricing can be used to identify the most favorable pricing opportunity.
  • Note the criteria used to determine which investments and other constraint-based decisions to make.
  • Recognize the strategies that will be most effective under certain competitive situations.
  • Cite the circumstances under which constraint management is more likely to succeed.

Chapter 1
Overview of Constraint Management

Identify the negative issues related to local optimization, as well as the basic concepts of constraint management. Also, recognize situations in which local optimization is being employed.

Chapter 2
Production Basis of Constraint Management

Cite the indicators of a constraint, as well as the means by which a constraint can be managed.

Chapter 3
Constraints in Other Departments

Recognize the existence of constraints in areas other than production, as well as the constraint issues involved in project management. Also, note the circumstances under which the use of increased resources in the sales area will not increase sales.

Chapter 4
Comparison to Traditional Cost Analysis

State the negative effects of cost reduction efforts, the use of gross margins, and the mis-application of direct labor costs.

Chapter 5
Comparison to Accounting Frameworks

Identify the cost assignments required by the major accounting frameworks.

Chapter 6
Constraint and Throughput Measurement

Cite the types of measurements that can be effective in managing a constraint and throughput.

Chapter 7
Constraint and Throughput Reporting

Identify the components of the various cost object analyses.

Chapter 8
Constraint Controls

State the reasons for using constraint controls, and note the best types of controls.

Chapter 9
Constraint-Based Budgeting

Note the project types used in capital budgeting, as well as the problems with the traditional methods used to derive a budget.

Chapter 10
The Ideal Constraint Management Environment

Cite the circumstances under which a constraint management environment is most likely to succeed.

Chapter 11
Financial Analysis Issues

Identify the key elements of a financial analysis that can improve the results of a business.

Chapter 12
Constraint-Based Pricing

Recognize the types of pricing methodologies, and how constraint-based pricing can be used to identify the most favorable pricing opportunity.

Chapter 13
Constraint Management Decisions

Note the criteria used to determine which investments and other constraint-based decisions to make.

Chapter 14
Constraint-Based Strategy

Recognize the strategies that will be most effective under certain competitive situations. Also, cite the circumstances under which constraint management is more likely to succeed.
Course Contents :

Chapter 1 - Overview of Constraint Management

Constraint Operational Terminology

Overview of the Constraint

The Throughput Concept

Types of Constraints

Local Optimization

The Capacity Concept

Types of Capacity

Location of Excess Capacity

Production Scheduling

The Cost of the Constraint

Chapter 2 - Production Basis of Constraint Management

Location of the Constraint

Constraint Management

Additional Staff

Constraint Scheduling

Processing Quality

Maintenance

Merged Operations

Off-Load Work

Quality Inspection

Redesign Products

Add Capacity

The Inventory Buffer

Buffer Sizing

The Expedite Zone

The Assembly Buffer

Buffer Holes

Dynamic Buffering

The Buffer Manager

Sprint Capacity

Production Scheduling

Scheduling Demands

Scheduling Priorities

Reasonable Constraint Time

Raw Materials Release

Labor Considerations

Batch Sizes

Expediting

Summary of Scheduling Activities

Chapter 3 - Constraints in Other Departments

Sales Department Constraints

Engineering Department Constraints

Executive Constraints

Project Management Constraints

Time Frame

Cost

Resources

A Solution to the Time Frame Constraint

Chapter 4 - Comparison to Traditional Cost Analysis

The Traditional Cost Focus

The Traditional Capacity Focus

The Gross Margin Focus

Treatment of Setup Costs

Treatment of Direct Labor

Treatment of Scrap Costs

Treatment of Low-Margin Products

Assignment of Costs to Inventory

Allocation of Corporate Overhead

Variance Reporting

Comparison of Direct Costing to Constraint Management

Comparison of Activity-Based Costing to Constraint Management

Chapter 5 - Comparison to Accounting Frameworks

The GAAP and IFRS Frameworks

Differences between Constraint Management and the Accounting Frameworks

Direct Labor and Factory Overhead

Variable Overhead

Asset Treatment

Income Statement Layout

Step 1 Assign Materials Costs to Inventory

Step 2 Assign Direct Labor Costs to Produced Units

Step 3 Allocate Factory Overhead to Produced Units

Step 4 Calculate Change in Ending Inventory Cost

Step 5 Produce Adjusted Income Statement

Data Storage Issues

Chapter 6 - Constraint and Throughput Measurement

Constraint Utilization

Constraint Effectiveness

Constraint Schedule Fulfillment

Buffer Penetration

Constraint Maintenance to Operating Ratio

Constraint Rework Processing

Post-Constraint Scrap

Manufacturing Effectiveness

Manufacturing Productivity

Manufacturing Effectiveness

Manufacturing Throughput Time

Order Cycle Time

Delayed Throughput

Inventory Turnover

Quoted Throughput

Proportion of Quoted Throughput Won

Sales Productivity

Measurements to Avoid

Chapter 7 - Constraint and Throughput Reporting

Cost Object Reporting

The Product Cost Object

The Product Line Cost Object

The Sales Channel Cost Object

The Customer Cost Object

Trend Line Analysis

Buffer Penetration Report

Buffer Management Report

Reports to Avoid

Chapter 8 - Constraint Controls

The Basis for Controls

Preventive and Detective Controls

Manual and Automated Controls

Constraint Controls

Production Flow Controls

Supplier Controls

Chapter 9 - Constraint-Based Budgeting

Overview of Capital Budgeting

The Capital Request Form

Capital Budgeting from a Constraint Perspective

Additional Capital Budgeting Analysis

Capital Budgeting Approvals

Format of the Fixed Asset Budget

Revenue Budgeting

Product-Based Revenue Budgets

Service-Based Revenue Budgets

New Product Introductions

Direct Labor Budgeting

The Direct Labor Budget (Traditional Method)

The Direct Labor Budget (Crewing Method)

Direct Labor Adjustments for the Constraint

Operating Expenses Analysis

Report Restructuring

Zero-Base Budgeting

Chapter 10 - The Ideal Constraint Management Environment

Senior Management Support

To Budget or Not to Budget

The Bonus Plan

Marketing Issues

The Single-Person Constraint

Union Work Rules

Policies that Help Constraint Management

Production Policies

Cost Reduction Policies

Chapter 11 - Financial Analysis Issues

Constraint Analysis Financial Terminology

Constraint Analysis from a Financial Perspective

The Constraint Analysis Model

Production Analysis

Increase Downstream Capacity

Increase Upstream Processing

Increase Upstream Capacity

Placement of a Quality Inspection Point

Add Staff to the Constraint

Outsource to a Supplier

Product Analysis

Add a Product

Terminate a Product

Other Analyses

No Internal Constraint

Allocate Based on Raw Material Availability

Chapter 12 - Constraint-Based Pricing

Pricing Strategies

Cost-Based Pricing Strategies

Value Pricing Strategies

Teaser Pricing Strategies

Strategic Pricing

Burdened Cost versus Throughput Pricing

Throughput per Minute

Pricing for a Lengthy Setup Time

Price Modeling

Pricing when there is no Constraint Impact

Pricing when there is no Constraint

The Decision to Sell at a Lower Price

The Decision to Enter into a Long-Term Contract

Chapter 13 - Constraint Management Decisions

Investment Decision Priorities

Priority 1 Increases Throughput

Priority 2 Reduces Invested Funds

Priority 3 Reduces Expenses

Additional Investment Considerations

Designing the Organization around the Constraint

Price Reductions

Inventory Build Decisions

Raw Materials Decisions

Work-in-Process Decisions

Finished Goods Decisions

Deliberate Production Delays

Target Costing Decisions

Chapter 14 - Constraint-Based Strategy

Speed of Delivery Strategy

Product Proliferation Strategy

Acquisition Strategy

Bankruptcy Prevention Strategy

Answers to Chapter Questions

Glossary

Production Course 645 Home: https://www.cpethink.com/cpe-for-cpas
Thank you for taking one of our free courses. We would like to be able to let you know when we add free courses or have special offers and will never spam you or share your address with anyone. If you are Ok with that please reply with "Ok" or if not please reply "No Thanks". Either way enjoy your free CPE course.
  
Exam completed on .

Do you want to add the course again?