1 / 53

Student Version

Student Version. Repetition is an important component, a key part of learning. In memory, the more times patterns of thought are repeated, the more likely you will be able to recall information.

Download Presentation

Student Version

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript


  1. Student Version • Repetition is an important component, a key part of learning. In memory, the more times patterns of thought are repeated, the more likely you will be able to recall information. • These PowerPoint slides have been modified from the lecture decks by making them fill-in-the-blank. Why? So that you get an opportunity to repeat a visual cue (from the lecture or the book) via completing text here. • In addition, most text book exhibits have been removed as they are available in your text directly.

  2. Cost Management for Just-in-Time Environments Chapter 27

  3. Learning Objective 1 Describe just-in-time manufacturing practices.

  4. 0 _________-__-_______ Practices • ________-__-_______(JIT), sometimes called _______ manufacturing, is a philosophy that focuses on _______ _______ and cost and eliminating _______ _______ .

  5. 0 Reducing _______ • Just-in-time (JIT) manufacturing views inventory as _______ and _______ . As a result, JIT emphasizes _______ or _______ inventory. • Under traditional manufacturing, inventory often _______ _______ _______ problems. • JIT manufacturing attempts to _______ and _______ _______ problems.

  6. Reducing Inventory

  7. 0 Reducing Lead Time • _______ _______ , sometimes called _______ time, is a measure of the time that elapses between _______ a unit of product and _______ the unit of product. The __________ time can be classified as one of the following: • ___-____ lead time, which is the time spent in _______ _______ materials into a _______ _______ of product. • ___-_____-________ lead time, which is the time spent while the unit of product is _______ to enter, or _______ _______ to, the _______ production process.

  8. Value-Added Ratio = 0 Reducing Lead Time • The _______-_______ ratio is computed as follows:

  9. Value-Added Ratio = Value-Added Ratio = = ______% Reducing Lead Time • The material in Exhibit 2 arrived was delivered to the customer 125 minutes later. Value was added in only 65 of these minutes. The value-added ratio is calculated as follows: Reducing Lead Time

  10. 0 Reducing Setup Time • A _______ is the effort spent preparing an _______ or _______ for a production run. If setups are _______ and _______ , the _______ size (_______ of units) for the related production run is _______ _______ . • _______ batch sizes allow setup costs to be spread over _______ units and, thus, _______ the _______ _______ unit. • Exhibit 3 shows the relationship between _______ times and _______ time.

  11. (_____________________) x (_____________– 1) Total Within-Batch Wait Time = 0 Reducing Setup Time • The lead time for Process Y is longer because each unit has to wait its “_______” while other units in the batch are processed. It takes a unit five minutes for each operation—four minutes waiting and one minute in production. • The _______ time is called _______-_______ _______ time. The total _______-_______ _______ time is calculated as follows:

  12. (___ + ___ + ___) minutes x (___ – 1) Total Within-Batch Wait Time = ______ minutes Total Within-Batch Wait Time = (_____________________) x (_____________– 1) Total Within-Batch Wait Time = Reducing Setup Time • The total within-batch wait time for Process Y is 12 minutes, as computed below.

  13. Value-Added Ratio = Reducing Setup Time • The value-added ratio for Process Y is ____%, as computed below. ____ minutes ____ minutes Value-Added Ratio = = ____ %

  14. Reducing Setup Time • Automotive Components Inc. manufactures engine starters as follows:

  15. The total lead time is 985 minutes, as computed below: Reducing Setup Time • The total within-batch wait time is 936 minutes, as computed below:

  16. Value-Added Ratio = (__+ __ + __) minutes ______ minutes Value-Added Ratio = Value-Added Ratio =______ % (rounded) Reducing Setup Time • Based on the data in the preceding slides, the value-added ratio is approximately ______%, as computed below:

  17. Reducing Setup Time • Automotive Components can increase its value-added ratio by: • ___________________________________________________________________, and • ________________________________________________________________________________________________________________________________________________

  18. 0 Emphasizing ________-_______ Layout • If the manufacturing process is organized around a ________ , it is called a ________-_______ layout (or ________ _______ ). • If the manufacturing process is organized around a ________, it is called a ________-_______ layout.

  19. Emphasizing Product-Oriented Layout • Just-in-time normally organizes manufacturing around __________ rather than _________. Organizing work around _________ reduces: • ____________________________________________ • ____________________________________________ • ____________________________________________ • ____________________________________________

  20. Emphasizing _______ _______ • _______ _______ is a _______ approach that grants employees the _______ and _______ to make decisions about operations by: • ______________________________________________. • ____________________________________________________________________________________________.

  21. 0 Emphasizing _______ Manufacturing • Producing items only as they are needed by the customer is called _______ manufacturing (or _______ __ _______). • A system that accomplishes _______ manufacturing is often called _______ (Japanese for “_______”). Electronic cards or containers signal production quantities to be filled by the preceding operation.

  22. 0 Emphasizing Pull Manufacturing • In contrast, the _______ approach is to _______ _______ based on _______ customer requirements. This principle is called _______ manufacturing (or _______ __ _______).

  23. 0 Emphasizing Zero Defects • Just-in-time manufacturing attempts to _______ _______ quality. _______ _______ creates: • _____________________________________________ • _____________________________________________ • _____________________________________________ • _____________________________________________ • _____________________________________________

  24. 0 Emphasizing Zero Defects • Six Sigma was developed by Motorola Corporation to improve _____ and manufacturing _____ and consists of five steps: • D_______________ • M _______________ • A _______________ • I _______________ • C_______________ • These five steps form the acronym ________

  25. 0 Emphasizing ________ ________ Management • ________ ________ management coordinates and controls the flow of ________, ________, ________, and ________ with suppliers, ________, and ________.

  26. Emphasizing Supply Chain Management • To enhance the interchange of information between suppliers and customers, supply chain management often uses: • ________ ________ ___________(EDI), which uses ________ to communicate • _______ ________ ______ ______(RFID), which are ________ ________ (________ ) placed on or ________ within products that can be read by ________ ________ that allow instant ________ of product ________.

  27. Emphasizing Supply Chain Management • ________ _______ ____________(ERP) systems, which are used to _______ and _______ _______ and supply chain operations.

  28. 0 Learning Objective 2 Apply just-in-time practices to a non-manufacturing setting.

  29. Just-in-Time for _________ Processes • Just-in-time practices may also be applied to _______ businesses or administrative processes like: • _____________ • _____________ • _____________ • _____________

  30. 0 Learning Objective 3 Describe the implications of just-in-time manufacturing on cost accounting and performance measurement.

  31. 0 Accounting for JIT Manufacturing • In just-in-time manufacturing, the accounting system has the following characteristics: • _____________ _____________. There are _______ transactions to record, thus _______ the accounting system. • ___________ _______________. All __-________ work is combined with _______ _______ to form a new account, _____and ___-______(RIP) _______ .

  32. Accounting for JIT Manufacturing • _______ _______. Direct labor is combined with other costs to form a new account titled _______ _______. • _______ _______ measures. _______ _______ measures are emphasized. • Direct _______ of _______ . Indirect labor is _______ assigned to _______ cells; thus, less _______ _______ is allocated to products.

  33. 0 Fewer Transactions • The accounting system for just-in-time manufacturing is simplified by _______ the _______ and _______ of product costs by departments. This type of accounting is termed _______ accounting.

  34. Cell Conversion Cost Rate = Cell Conversion Cost Rate = $_____ per hr = 0 Combined Accounts • Anderson Metal Fabricators, a manufacturer of metal covers for electronic test equipment, has an annual budgeted conversion cost of $2,400,000 and 1,920 planned hours of production. The cell conversion cost rate is determined as follows:

  35. Conversion Cost for Cover _______ _______ _______ _______ _______ _______ = × _______ hours × $ _______ $ _______ per unit = = 0 Combined Accounts • Assume that Anderson Metal’s cover product cell is expected to require 0.02 hour of manufacturing time per unit. Thus, the conversion cost for the cover is $25 per unit, as shown below.

  36. 0 Combined Accounts • Steel coil is purchased for producing 8,000 metal covers. The purchase cost was $120,000, or $15 per unit. Raw and In Process Inventory 120,000 Accounts Payable 120,000 To record materials purchases. A _______ Raw Materials account is _______ used.

  37. 0 Combine Accounts • Conversion costs are applied to 8,000 covers at a rate of $25 per cover. Raw and In Process Inventory 200,000 Conversion Costs 200,000 To record applied conversion costs of the medium-cover line. The _______ ___ _______ __ _______ account is used to _______ the _______ _______ costs.

  38. Materials ($15 x 8,000 units) $120,000 Conversion ($25 x 8,000 units) 200,000 Total $320,000 0 Combined Accounts • All 8,000 covers were completed in the cell. Finished Goods Inventory 320,000 Raw and In Process Inventory 320,000 To transfer the cost of completed units to finished goods. This is a _______ transaction because the raw and in process inventory account balance is _______ _______ the _______.

  39. 0 Combined Accounts • Of the 8,000 units completed, 7,800 were sold and shipped to customers at $70 per unit. Accounts Receivable ____,000 Sales ____,000 To record sales. 7,800 × $___ Cost of Goods Sold ____,000 Finished Goods Inventory ____,000 To record cost of goods sold. 7,800 × $____

  40. 0 _______ Performance Measures • A _______ measure is operating information that has not been stated in dollar terms. Examples include: • ___________________________ • ___________________________ • ___________________________ • ___________________________ • ___________________________ • ___________________________ • ___________________________

  41. 0 Learning Objective 4 Describe and illustrate activity analysis for improving operations.

  42. 0 _______ Analysis • An _______ analysis determines the cost of _______ based on an analysis of _______ _______ and other records. An _______ analysis can be used to determine the cost of: • ____________ • ____________ • ____________

  43. 0 Costs of Quality • _______ costs are costs of _______ _______ before or _______ the manufacture of the product or _______ of services. • _______ costs are costs of _______ that _______ , _______ , _______ , and _______ products and _______ to ensure that they _______ customer _______ .

  44. Costs of Quality • _______ _______ costs are costs associated with _______ discovered _______ the product is _______ to the consumer. • _______ _______ costs are costs incurred _______ _______ products have been _______ to consumers.

  45. 0 _______ of _______ • Exhibit 5 shows the relationship between the _______ of _______ . The _______ and _______ _______ costs decline with increases in the _______ of good units _______ .

  46. 0 _______ Chart of Quality Costs • Managers want information displayed so that important problems or issues can be identified quickly. One method of reporting quality cost information is the _______ chart. • A _______ chart is a _______ chart that shows the _______ of an _______ for a number of ranked _______ .

  47. 0 Cost of Quality Report • A _______ of quality _______ normally reports the: • _______________________________________ • ______________________________________________________________________________ • _______________________________________

  48. 0 _______- _______ Activity Analysis • A _______-_______ activity is one that is _______ to _______ customer requirements. • A non-_______- _______ activity is _______ required by the customer but occurs because of _______, _______, _______, and _______ failures.

  49. Process Activity Analysis • A _______ is a series of _______ that _______ an _______ into an _______ . Common business processes include: • ______________________________ • ______________________________ • ______________________________ • ______________________________ • ______________________________

  50. Process Activity Analysis • Assume that the cost of Masters Company’s four activities is as follows: If 10,000 sales orders are filled during the current period, the per-unit process cost is $8 per order ($80,000/10,000 orders).

More Related