(anti)Cost Accounting Seminar 

"Product cost" is probably the most cherished sacred cow in industry. It is also the most damaging concept.

The idea is that as long as the selling price is higher than the cost of the product/service, the company is making money by producing and selling that product/service.

If that is really the case, why is it that for almost any company that loses money the reality is that for everyone of its product/services the selling price is higher than the product/service cost?

Come learn the answer.

On March 24th at 8:00 AM at Elcona, Reach 360 and Insight Strategic Concepts offer you the opportunity to hear world renowned speaker Dr. Donn J. Novotny outline and explore the theory that the standard practice of cost accounting is actually Enemy #1 of Productivity.

H. Johnson Johnson and Robert S. Kaplan, in their breakthrough book of the 80's "Relevance Lost," describe the relevance lost in moving from cost management to cost accounting. Dr. Eli Goldratt, recognized industry guru and developer of the Theory Of Constraints, claimed that cost accounting was one of the biggest constraints in helping companies make more money. The National Association of Accountants (NAA) also supports the stance of these thought leaders, yet industry continues to rely on the concept of cost as a primary driver of profitability.

This seminar will show why finance and accounting managers need to rethink judgements based on traditional standard cost. The focus of this session will be on the different kinds of judgements finance and accounting provide, the pitfalls and ramifications of providing distorted judgements, and how to avoid these distortions.

Throughput accounting will be introduced as a more logical and effective tool in evaluating alternatives for growth and profitability. This approach, coupled with constraint management, has proven to be highly successful in providing companies with a competitive edge now and in the future. Furthermore, continuous improvement efforts such as Lean and Six Sigma have benefited as well.

Dr. Donn J. Novotny is President of The Goal Institute. Dr. Novotny founded The Goal Institute after a 16 year tenure as a partner of the Avraham Y. Goldratt Institute, founded by Dr. Eliyahu M. Goldratt, author of The Goal. The Goal concepts have since evolved into the Theory of Constraints, which is the formulation of an overall theory for running an organization.  Dr. Novotny is involved in the development, dissemination, and application of the many powerful tactical solutions that have been derived from this theory.   

Have you read the world-renown best selling book The Goal, by Eliyah Goldratt (there are 30 million copies in print thus far)?  Have you wondered, who is Alex Rogo?  Donn Novotny collaborated with Mr. Goldratt to write his story; Donn Novotny is Alex Roga!

Dr. Novotny has lectured at many prestigious universities in North and South America and Institute programs have been incorporated into many of the curriculums.  He also serves on the Education Task Force for the American Chamber of Commerce in Mexico as well as the advisory council for many other universities.  

Industry has prospered as well, with many of the companies in the Americas attributing their success to the practical application of the Theory of Constraints by Dr. Novotny to enhance delivery performance and supply chain issues as well as blend in with other techniques such as Lean, JIT, and TPS.  Many Fortune 100 companies are among his clients, including DaimlerChrysler, Ford, and General Motors. 

Dr. Novotny’s background includes extensive experience in industry as a consultant and executive as well as faculty appointments at Purdue, Wharton, and the University of Notre Dame.  Simulation, network scheduling, and materials management have been the focus of his research and his work was instrumental in the development of many finite scheduling systems.  His current research efforts are devoted to the need to identify and resolve the strategic constraints of supply chains.  Only then can the tactical constraints necessary to support good strategies be properly addressed.

Please note: Dr. Novotny has agreed to stay for an additional 30 minutes to answer questions.  This event has been extended from 8:00 AM - 9:30 AM to 8:00 AM - 10:00 AM.