Chapter 2 Flashcards
Is a production system also known as ‘pull-it-through approach’
Just-in-time (JIT)
Is the philosophy that activities are undertaken only as needed or demanded.
Inventories are reduced to the minimum and/or zero.
Just-in-time (JIT)
What are the four characteristics of JIT?
- Elimination of activities that do not add value
- Commitment to a high level of quality
- Commitment to continues improvement
- Emphasis on simplifications and increased visibility
What are the main benefits of JIT?
- Working capital position is improved
- Throughput time is reduced
- Areas previously use to store inventories are released
- Lesser waste and more customers satisfaction
Is a technique in which management develop policies and practices to ensure that firm’s products and services exceeds customers satisfaction.
Total Quality Management (TQM)
‘continues quality improvement program’
Total Quality Management (TQM)
Is a formal effort to improve quality throughout organization’s value chain
Total Quality Management (TQM)
Two major characteristics of TQM
- Focus on serving customers
- Systematic problem-solving made-up front-line workers
Is an approach where a business process is diagrammed in detail, questioned and completely redesigned in order to eliminate unnecessary steps, errors and reduce costs.
Process Reengineering
process of creating competitive advantage
Reengineering
“fundamental rethinking and radical redesign of business processes to achieve dramatic improvements in critical, contemporary measures of performance such as cost, quality, service and speed.”
Reengineering
any series of steps that are followed in order to carry out tasks in a business.
Business Process
Steps of Process Reengineering
- Diagrammed in detail
- Every steps must be analyze and justified
- The process is redesigned
Anticipated results of steps for Process Reengineering
- Process is simplified and completed in less time
- Costs and opportunity for errors is reduced
a process by which a firm:
• determine its critical success factors
• studies best practices of other firms achieving theirs success factors
• implements improvements
Benchmarking
Is management technique in which marketing and production process is designed to handle increased variety that results from delivering products and services to customers.
Mass Customization
Four Areas of Critical Success Factor in Balance Scorecard Accounting
- Financial Performance
- Customer satisfaction
- Internal business process
- Innovation and learning
Design of Management Accounting System
- Customer focus theme
- Value Chain and supply chain analysis
Two general strategies for Customer focus theme
• Cost Leadership
• Superior product through differentiation
How would increased global competition affect management accounting?
✓ Information and Communication Technology Management
✓ Cost Management System
Is used to develop a detailed description of the specific activities performed in the operation of the firm.
Provides the basis for activity-based management
Activity analysis
Activity-based Costing (ABC)
Is used to improve the accuracy of cost analysis by improving the tracing of costs to products or to individual customers
Activity-based Costing (ABC)
Uses activity analysis to improve operational control and management control
Activity-based Management (ABM)
Is a sequential process of identifying and removing constraints in a system
Theory of Constraints (TOC)