managing costs revenues
Download
Skip this Video
Download Presentation
Managing Costs & Revenues

Loading in 2 Seconds...

play fullscreen
1 / 12

Managing Costs & Revenues - PowerPoint PPT Presentation


  • 74 Views
  • Uploaded on

Managing Costs & Revenues. Professor William F. O’Brien, MBA, CPA. Spring 2012. Session 7. Lean Production Reichard Case. MALP. Strategic Implications of Mgt. Acctg. Systems Quality choices can be affected Cost is fundamental Provides information on timeliness of production.

loader
I am the owner, or an agent authorized to act on behalf of the owner, of the copyrighted work described.
capcha
Download Presentation

PowerPoint Slideshow about ' Managing Costs & Revenues' - quynh


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.While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server.


- - - - - - - - - - - - - - - - - - - - - - - - - - E N D - - - - - - - - - - - - - - - - - - - - - - - - - -
Presentation Transcript
managing costs revenues

Managing Costs & Revenues

Professor William F. O’Brien, MBA, CPA

Spring 2012

session 7
Session 7
  • Lean Production
  • Reichard Case

MANAGING COSTS AND REVENUES-2012

slide3
MALP
  • Strategic Implications of Mgt. Acctg. Systems
    • Quality choices can be affected
    • Cost is fundamental
    • Provides information on timeliness of production

MANAGING COSTS AND REVENUES-2012

determinants
Determinants

Strategic Choices

Cost Structure

Environment

-Structural Elements

-Work Processes

Management

Accounting

System

Production Methods

MANAGING COSTS AND REVENUES-2012

types of production methods
Types of Production Methods
  • Craft
  • Mass Production
  • Lean Production (Flexible Mfg. System)

MANAGING COSTS AND REVENUES-2012

structure differences
Structure Differences
  • Mass
    • Inflexible single purpose
    • High set-up time
    • Low labor skill level
  • Lean
    • Multi-use equipment
    • Low set-up time
    • Skilled labor force

MANAGING COSTS AND REVENUES-2012

work process differences
Work Process Differences
  • Mass
    • Supervisory control
    • Precise control over supplier
    • Standardized products
    • Independent, sequential prod. develop.
  • Lean
    • Empowered workers
    • Cooperative relationship w/suppliers
    • Customer focused organization
    • Concurrent, integrated design

MANAGING COSTS AND REVENUES-2012

cost structure
Cost Structure
  • Mass
    • Driven by volume
    • Allocation of fixed costs
  • Lean
    • Driven by process or activity

MANAGING COSTS AND REVENUES-2012

mgt acctg system in lean production
Mgt. Acctg. System in Lean Production
  • Driver focused
  • Value chain focused
  • Limited need for inventory reporting
  • Indirect cost orientation
  • Information system is critical for success

MANAGING COSTS AND REVENUES-2012

lean prod attributes
Lean Prod--Attributes
  • Technical
    • Better decision relevance
      • Driver focused
      • External orientation
      • Cross functional & value chain focus
    • Better process understanding

MANAGING COSTS AND REVENUES-2012

malp attributes cont
MALP--Attributes, cont.
  • Behavioral
    • Team responsibility
    • Multiple motivation
    • Accountant as team player
    • Quality commitment
    • Global optimization
    • Risk of burnout

MANAGING COSTS AND REVENUES-2012

malp attributes cont1
MALP--Attributes, cont.
  • Cultural
    • Team responsibility
    • Cooperation vs. competition
    • Focus on overall common good
    • Change in locus of power

MANAGING COSTS AND REVENUES-2012

ad