The Theory of Constraints and Lean Accounting

Learning Objectives

• To identify the basics of the Theory of Constraints
• To identify the Key principles in Throughput Accounting
• To recognize why “flow” is important in the Theory of Constraints, Throughput Accounting and Lean Accounting
• To identify the performance measures and KPIs of Throughput Accounting
• To recall what Lean Accounting is and how it works

Course Description

The purpose of management accounting is to support decision-making and performance management in an organization. As accountants, we must have a wide range of tools and techniques that we can use to support the needs of our organizations. Throughput Accounting and Lean Accounting are both examples of flow accounting that provide tools for process-orientated organizations. Throughput Accounting is designed to support management accounting in organizations that are implementing the tenets of the Theory of Constraints.

Lean Accounting, like Throughput Accounting, focuses on improving the flow of work through a business process and provides a variety of flexible tools to measure, manage and improve performance. This course covers the Theory of Constraints, Throughput Accounting, and Lean Accounting to give learners a thorough grounding of the main issues. It covers the following Key Topics:

• What is the Theory of Constraints?
• What is Throughput Accounting?
• The Performance Measures of Throughput Accounting
• What is Lean Accounting?
• The Seven Aims of Lean Accounting
• Lean Performance Measures
• Performance measures and decision-making in Lean Accounting
• Accounting Transactions in Lean
• Throughput Accounting, Lean Accounting, and the Financial Statements

There is a lot to cover and I have made it as clear and accessible as possible. Other than an interest in business finance and performance management, there are no prerequisites for this course. I hope you enjoy it.

You might be interested in a Certification course in Forensic accounting.

Overview

• The Theory of Constraints

  11 mins
• Throughput Accounting

  18 mins
• Throughput Accounting Metrics

  24 mins
• Throughput Accounting Example

  33 mins
• Introduction to Lean Accounting

  46 mins
• Lean Performance Measures

  52 mins
• Creating Lean Performance Measures

  67 mins
• Manage by Value Stream

  90 mins
• Lean Accounting Tools

  107 mins
• Transaction Elimination

  120 mins