Professional Documents
Culture Documents
Managerial Accounting
Managers who plan for and control an organization Future emphasis Emphasis on relevance for planning and control Emphasis on timeliness Focuses on segments of an organization Need not follow GAAP or any prescribed format
Growth of the internet Just-in-Time production Total Quality Management International competition
Schedule production. Receive materials just in time for production. Complete parts just in time for assembly into products.
JIT Consequences
Improved plant layout Reduced setup time Zero production defects Flexible workforce
JIT purchasing Fewer, but more ultrareliable suppliers. Frequent JIT deliveries in small lots. Defect-free supplier deliveries.
Decreased throughput
Plan
If successful, make the change permanent. If the results are not successful, try again.
Act
is
Do
Check
Evaluate the data collected during the Do phase. Did the expected improvement occur?
Process Reengineering
A business process is diagrammed in detail.
Anticipated results: Process is simplified. Process is completed in less time. Costs are reduced. Opportunities for errors are reduced. The process is redesigned to include only those steps that make our product more valuable.
Theory of Constraints
A sequential process of identifying and removing constraints in a system.
Restrictions or barriers that impede progress toward an objective
Theory of Constraints
Only actions that strengthen the weakest link in the chain improve the process.
4. Coordinate processes
Theory of Constraints
Process Capacity
A measure of a processs ability to transform resources into value products and services. System Constraint The point in a system that limits the overall output of the system. Often called the bottleneck.
International Competition
Meeting world-class competition demands a world-class management accounting system. Managers must make decisions to plan, direct, and control a world-class organization.
Competence
Prepare complete and clear reports after appropriate analysis.
Confidentiality
Integrity
Recognize and communicate personal and professional limitations.
Integrity
Communicate unfavorable as well as favorable information.
Objectivity
Disclose all information that might be useful to management.
End of Chapter 1