B3-M4 Flashcards
Benchmarking
- identify standards that define or quantify critical success factors
- compare and contrast financial info to published info reflecting optimal amounts
Total factor productivity ratios
-considers quantity and cost/price of inputs
Partial productivity ratios
-only consider quantity
External benchmarks
- non financial measures
- productivity measures
- operational objectives
Internal benchmarks
-techniques to find and analyze problems
Control charts
- used in statistical quality control (SQC)
- shows performance of process in relation to acceptable range of deviation
Pareto Diagrams
- determines quality control issues that are most frequent
- lists frequency of defects from highest to lowest
Cause and Effect (Fishbone) Diagram
- identify sources of problems
- analyze problems that contribute to occurrence of defect
Responsibility segments (Strategic business units SBU)
- performance objectives in which managers may be held accountable
- cost, revenue, profit and investment(most like independent business)
Contribution margin
-measures excess of revenues over variable costs
Controllable margin
-difference btwn contribution margin and controllable fixed costs
Balanced scorecard
- gathers information on multiple dimensions of an org’s performance
- composed of 4 critical success factors
Critical success factors (dimensions)
- Financial
- Internal business process
- Customer satisfaction
- Advancement of innovation and human resource development (learning and growth)
Conformance costs
-prevention and appraisal costs
Prevention costs
- prevent the production of defective units
- employee training, inspection exp, redesign, preventative maintenance
