Transcript Managerial Accounting - Gunadarma University

The Changing Business
Environment
Growth of the internet
Just-in-Time production
Total Quality Management
International competition
McGraw-Hill/Irwin
Business environment
changes in the past
twenty years
© The McGraw-Hill Companies, Inc., 2003
The Changing Business
Environment
New tools for
managers!
Just-In-Time
Total Quality
Management
Process Reengineering
Theory of Constraints
McGraw-Hill/Irwin
© The McGraw-Hill Companies, Inc., 2003
Just-in-Time (JIT) Systems
Receive
customer
orders.
Complete products
just in time to
ship customers.
Schedule
production.
Receive materials
just in time for
production.
McGraw-Hill/Irwin
Complete parts
just in time for
assembly into products.
© The McGraw-Hill Companies, Inc., 2003
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.
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© The McGraw-Hill Companies, Inc., 2003
Benefits of a JIT System
Reduced
inventory
costs
Freed-up funds
Greater
customer
satisfaction
Higher quality
products
Increased
throughput
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More rapid
response to
customer orders
© The McGraw-Hill Companies, Inc., 2003
Total Quality Management
Where are we?
Benchmarking
Where do we want to go?
Plan
Do we need
to change
the plan?
Act
is
Check
Do
How do
we start?
Continuous
Improvement
How are we doing?
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Process Reengineering
A business process
is diagrammed
in detail.
Every step in
the business
process must
be justified.
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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.
© The McGraw-Hill Companies, Inc., 2003
Theory of Constraints
A sequential process of identifying and removing
constraints in a system.
Restrictions or barriers that impede
progress toward an objective
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© The McGraw-Hill Companies, Inc., 2003
Theory of Constraints
Only actions
that strengthen
the weakest link
in the “chain”
improve the
process.
2. Identify
process
constraints
1. Measure
process
capacity
3. Use
bottlenecks
effectively.
4. Coordinate
processes
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© The McGraw-Hill Companies, Inc., 2003
Theory of Constraints
Process
Capacity
A measure of a
process’s ability
to transform
resources into
value products
and services.
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System
Constraint
The point in a
system that
limits the overall
output of the
system. Often
called the
“bottleneck.”
© The McGraw-Hill Companies, Inc., 2003