...casts for model airplane. Recently the company has experienced troubles in production regarding the quality and amount of defects that have been produced. Quality assurance has shown, through process audits, that there has been no change in the system process. Quality assurance also suggests that the defects may be due to variations in the process but are not sure what they might be. The president of the company does not understand the findings of quality assurance and wants to overhaul the entire process to reduce defects. Unfortunately, an overhaul would be very expensive and if it is a variation it may not fix the problem. In this essay one will explore the main cause of the defects. One will also become aware of some of the quality management tools that can be used to present data so that the defects can be fixed. Also one will learn why it is important for managers to employ process thinking in order to fix quality issues. The first issue that must be completed is letting the president know that an overhaul of the current process may be expensive and timely. I would tell the president, “An overhaul of the entire system to fix the defects may prove to be expensive and timely. It is my belief, through the audits of quality assurance, that there may be issue with variations in the process. What this means is that there may be one issue in the process causing the problem and can be fixed with minimal expense.” In order to fix any process managers must be able to analyze every...
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...Running Head: Delta Plastics, Inc. (B) Delta Plastics, Inc. Dr. Kyle Peacock Operations Management: BUS 515 November 12, 2011 The control chart helps in detecting and understanding presence of special causes of variation. In order to deal and tackle defects in the products and to make quality products available to the consumers, the control chart for product so prepared by standard material and for product prepared by super plastic would help in understanding the areas to be focused and controlled. The 3-sigma control chart prepared for the standard material clearly gives the reflection of the process that can be controlled. There control chart depicts two major areas known as control limits. These are represented by the upper control limit (UCL) and the lower control limit (LCL). The calculation of the control limit can be done through the help of identifying the base control limit, variation and standard deviation for the process. The upper and the lower control limits for a process are calculated by adding and subtracting three times standard deviation respectively to the base control limit. When a point that exceeds control limits then it used to produce signals that contains an alarm for action to be taken to maintain the standards of production process. [pic] Control Chart for Standard Material [pic] Control Chart for Super Plastic Analysis of the calculated control limits for both the standard plastic...
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...Introduction of the Company Gilford weaving Ltd. started its operation in 2010. Company started its operation with the mission to produce best quality cloth for the community, however the mission of the company has attracted the investor to take decisions for further investment, but management has counter with exceeded cost of its operation. A production process can be defined as one in which the inputs are combined in fixed proportion to obtain the output (McGuigan, Moyer, Harris, 2011). There might be different environmental factor that influences the company performance to bear the losses for the long time. So, due to current performance of the company management compelled to discontinue its operations. In this regard, management has decided for final review, if they can continue its operations and hired a management consultant to review their overall operational situation of the company. Therefore, management consulted has put forward his suggestion that by following Methods Company can compensate its losses and also achieve the targets of profits. Performance evaluation of the company/Month Revenue ($32*6000) $192000 Total labor cost= No. of workers*no. of days*labor rate per day = $140,000 Total variable cost= cost per day*no of days = $40,000 Total cost= Total variable...
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...Organization Performance 9 Waste Management 10 Constraint Management 11 Step of Production Process 11 Constraints 12 Ways for performing Throughput 13 Improving system throughput and productivity 14 Voice of customer Waskia Restaurant Customer satisfaction is essential topic related towards companies’ profits. In order to gain competitive advantage, companies have to determine the customer’s satisfaction factors. When a customer gets experiences higher than the expectation, at this moment it is said that the customer is satisfied. Many businesses that do not focus over customer satisfaction factor faces resistance in achieving success. If company focus on customer satisfaction, it may result in having loyal customers, the company does not have to spend too much expense for gaining new customer because the word of mouth the satisfied customer tend to advertize This topic is related to developing and measuring the customer service of Waskia Restaurant. The customer perception of Waskia? What have they perception about it? Another way, its food quality, menu pricing and its value, menu selection, service promptness, friendliness of waiters’, décor, waiting time and overall customer experience The secondary aim is to determine the ways for improving the customer satisfaction of Saskia restaurant. It will help the Waskia restaurant to know how they are performing in the above areas. This topic is related to hotel management. About Waskia Resturant Waskia...
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...Annals of the „Constantin Brâncuşi” University of Târgu Jiu, Economy Series, Issue 2/2013 IMPROVING MANAGEMENT ACCOUNTING AND COST CALCULATION IN DAIRY INDUSTRY USING STANDARD COST METHOD Bogdănoiu, Cristiana-Luminiţa Assistant, Ph.D. Student Spiru Haret University, Faculty of Financial Accounting Management Craiova and University of Craiova, Faculty of Economics and Business Administration, Craiova e-mail: cristiana.bogdanoiu@yahoo.com Abstract This paper aims to discuss issues related to the improvement of management accounting in the dairy industry by implementing standard cost method. The methods used today do not provide informational satisfaction to managers in order to conduct effectively production activities, which is why we attempted the standard cost method, it responding to the managers needs to obtain the efficiency of production, and all economic entities. The method allows an operative control of how they consume manpower and material resources by pursuing distinct, permanent and complete deviations during the activity and not at the end of the reporting period. Successful implementation of the standard method depends on the accuracy by which standards are developed and promotes consistently anticipated calculation of production costs as well as determination, tracking and controlling deviations from them, leads to increased practical value of accounting information and business improvement. Key words: standard cost method, calculation, deviations, effective costs...
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...Use of SCM as a Method of Inventory Control January 22, 2012 Business 650: Managerial Finance Dr. Samantha Duhn Introduction Supply chain management (SCM) is the management of a network of interconnected businesses involved in the ultimate provision of product and service packages required by end customers. Supply chain management spans all movement and storage of raw materials, work-in-process inventory, and finished goods from point of origin to point of consumption. Supply chain management is a concept that is applicable to many industries. Supply chain management is also a consideration of all possible events and factors that can affect, change, or disrupt a product. The supply chain starts very early, in planning stages, and extends through the re-use of an obsolete product. In many cases the supply chain includes the collection of goods after consumer use for recycling. Supply change management is a key to successfully managing inventory within the manufacturing industry and works by combining the of art and science that goes into improving the way your company finds the raw components it needs to make a product or service and deliver it to customers (Wailgum, 2008). The Process of SCM Supply chain management is a complex process comprised of many simple steps and strategies outlined here. Planning is essential to the SCM process. This is the strategic portion of SCM. Companies need a strategy for managing all the resources that go toward meeting customer...
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...JOS FACULTY OF MANAGEMENT SCIENCES DEPARTMENT OF ACCOUNTING MASTERS IN ACCOUNTING AND FINANCE (M.Sc) ACC 512 – ADVANCED MANAGEMENT ACCOUNTING “ENVIRONMENTAL MANAGEMENT ACCOUNTING AS A STRATEGY FOR CORPORATE SUVIVIAL” PRESENTED TO THE COURSE LECTURER – PASTOR j a OLOREDE BY; OLUMIDE ABISOYE OLOWOKURE PGSS/UJ/00083/10 Introduction Environmental accounting is a broader term that relates to the provision of information on environmental-performance to different stakeholders both within, and outside, an organization. The United States Environment Protection Agency (US EPA) sees the main function of environmental accounting as that of bringing environmental costs to the attention of corporate stakeholders who may be able and motivated to identify ways of reducing or avoiding those costs while at the same time improving environmental quality. Environmental accounting has three major aspects. 1. National Income accounting, which addresses the environmental accounting need of the nation and it’s external in nature. It is basically the micro economic measure which may use for instance physical or monetary units to refer to the consumption of the nation’s natural resources. 2. Financial accounting which addresses the environmental accounting needs of the firm this is also external in nature. This may simply be the estimation and public reporting of environmental liabilities and financial material environmental costs...
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...Case study for Nucor steel company Case studies bring interesting, real-world circumstances in the study of business fields. Managers make different decisions in their companies, and each decision has a direct influence in revenue, costs, and profits. In analyzing the case study of Nucor steel company, different central firm issues, firm goals, the constraints to improving the firm and the relevant alternatives to counter the problems are addressed. To grow in steel market, metal producers are increasingly expanding territories, not only to better manage input costs, but also to secure access to strategic raw materials. With improving economies’ growth is expected to boost desire for many to purchase the product in the medium term. Steel producers and mini-mill companies are situated in the midst of a very competitive environment in both domestic and global scale which adversely affects their profitability. This competition among steelmakers is to capture a significant portion of the steel market in light of the fact that, the global supply of steel far exceeds the demand for steel products (Thompson, 207). The first competitive forces impacting steelmakers is the force to drive down the profitability of steel industry, steelmakers are primarily affected by the abundant steel supply versus demand, which depresses the market price of steel as a commodity. Competition among steelmakers is to lower product prices in order to capture a significant portion of potential customers...
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...Value Chain and Six Sigma Requirement Lanita Douglas Bus Strategy and Innovation for Competitive Advantage 13 May 2015 Supply chain management is defined as “the design and management of a supply chain network that delivers high-quality products to the right customers at the right time at minimum cost”. On the other hand, six sigma tools are powerful processes used by managers to identify and thus aid in solving the problems evidenced in the supply chain. Six sigma helps in continuous improvement to ensure variation and quality control while improving production and eliminating waste. This way, the six sigma helps in improving the efficiency of the supply chain. Using the six sigma, the supply chain managers have in mind what customers want. They ensure that the define value, deliver it, and maintain accountability for everything they do towards realizing the goals of the customers (Bentley & Davis, 2009). Six sigma ensure value for customers. Value for customers means what customers are willing to pay the company to deliver. Value is effectively measured through increasing quality while minimizing waste. Six sigma helps in “measuring the processes involved in increasing quality while decreasing waste, and establishing variation-reducing controls to ensure a consistent output” (Martin, 2014, p. 37). Using six sigma in the supply chain, supply chain managers ensure that they adhere to the established processes, comply to the requirements, which are based on customer’s...
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...inventory, decreased wastage, and the implementation of an Enterprise Resource Planning. In this study, there will be a review of Riordan Manufacturing’s operational strategy and an addition of the topic of process design to it. “The process design includes the selection of appropriate technology, sizing the process over time, the role of inventory in the process, and locating the process” with quality management as its main focus (Chase, Jacobs, & Aquilano 2006, p. 24). A proposal for a Process Design for Riordan Manufacturing in regard to the electric fans system will be given. It will include Material Requirements Planning for the manufacturing of the electric fans, process design for production, and new supply chain taking advantage of global opportunities available. The study will cover the production forecast for the electric fans, the implementation plan as well as a Gantt chart of the design process, and a cover letter, which details how the company will coordinate aggregate operations planning and Total Quality Management for Riordan electric fans. Material Requirements Planning (MRP) Chase, Jacobs, &...
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...Chapter 1 - Accounting Information Systems: An Overview A system is a set of two or more interrelated components that interact to achieve a goal. Most systems are composed of smaller subsystems that support the larger system. For example, a college of business is a system composed of various departments, each of which is a subsystem. Moreover, the college itself is a subsystem of the university. Each subsystem is designed to achieve one or more organizational goals. Changes in subsystems cannot be made without considering the effect on other subsystems and on the system as a whole. Goal conflict occurs when a subsystem is inconsistent with the goals of another subsystem or with the system as a whole. Goal congruence occurs when a subsystem achieves its goals while contributing to the organization’s overall goal. Data are facts that are collected, recorded, stored, and processed by an information system. For example, the business needs to collect data about a sale (date, total amount), the resource sold (good or service, quantity sold, unit price), and the people who participated (customer, salesperson). Information is data that have been organized and processed to provide meaning and improve the decision-making process. However, there are limits to the amount of information the human mind can absorb and process. Information overload occurs when those limits are passed, resulting in a decline in decision-making quality and an increase in the cost of providing that information...
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...ltdDabur India - Working Capital and Cost Management Dr. Narender L. Ahuja, Institute for Integrated Learning in Management, New Delhi, India Ms. Sweta Agarwal, Institute for Integrated Learning in Management, New Delhi, India ABSTRACT After running as a family business for over 100 years, when in late 1990s the management of the Dabur was handed over to a team of professional managers, the new management faced a gigantic task of improving performance in several critical areas. In particular, working capital and cost management required urgent attention as the company’s performance in these areas had been far from satisfactory. The then prevailing current ratio of 3.2 and quick ratio of 2.4 were considered too high and indicative of heavy unnecessary investments in working capital that would have a negative effect on company’s profitability. Efforts to improve the working capital efficiency were met with stiff resistance from various quarters, but finally yielded results. The case study discusses the measures taken to improve the working capital and cost management performance, and how with concerted efforts the management turned around a highly inefficient working capital management into one of the most efficient in the FMCG sector of Indian Industry. In fact, the company seemed to have taken the matter to the other extreme of negative working capital, with the current ratio declining to 0.8 and the quick ratio to just 0.4 in 2004-05. In 2005-06 as the company was ready...
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... Core Business Processes The core business processes includes * procurement, logistics and distribution in this the input will be obtained from various sources and stored it for further production, the finished product will be stored and supplied to the customers for their end use * Operations that is the activities will be transformed in to final product * Product development, here the existed product will be improved based on the feed back of the customer or through research for this the marketer will analyze the market and the new product will be designed. * Sales, Customer accounts and marketing, in this activity to promote the goods in to the market the goods or product will be advertised and through retail management the sales will be done and even customer accounts will be maintained * After sale service that after the product is sold to the customer it should be given support by rendering service,...
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...customer complaints. The firm may revamp the product raw materials and assess if it is due to quality or equipment issues. Also data will be collected and analysis on the most common complaints to reduce /eliminate the problem. Also explore if additional training and/or hire/replace some employees for assistance with the consumers complaints. B. 6 types of cost Management Cost- Cost management is the process by which companies control and plan the costs of doing business. This can be translated as reducing costs of production for products or services, in addition to improving value being delivered to the customer. Manufacturing cost - Manufacturing costs flow through three basic responsibility centers: the raw materials storeroom, the factory, and the finished goods storeroom. These inventory accounts are usually provided to accumulate costs as they relate to the three responsibility centers: raw material inventory, work-in-process inventory, and finished goods inventory. When goods are sold, costs are transferred from the finished goods inventory account to the cost of goods sold account. The flow of costs through the manufacturing process Utility cost - The cost of usage of utilities such as lighting, water, and heat. Labor cost – training, hours worked, health benefits etc Material cost- The amount of money invested in the production of a product. Likethe parts of a machine would be things that incur material cost Production cost- The costs related to making...
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...As management team of an organization it is necessary to ensure the safe welfare of the people at all times. First, analyze inputs, outputs processes agreed on and understand that their other ways in which these processes can be better. Such changes are necessary for process reasons and management must be set to report such changes. There are positions in companies responsible for ensuring that processes, products, and services offered comply fully with the expectations of customers. The so-called "quality controls" are the order of the day in different industries, thus minimizing the losses that come when there is a claim for defective product or service. The following provides an example of how practical quality control is essential in company. In the example provided in chapter 15 of book reading (Goestch, 2010) presents the status of status of certain types of molds aircraft to a company's customer Cignet. For years it has featured as an organization that provides services "die casting." The receiving client has complained about the state in which the products are leading to an increase in the percentage of defects in the organization. Not notice any change in the process of manufacturing these parts therefore not within the quality control at the time of manufacturing. It is assumed that there is an assignable cause that does not happen by chance, but it can be agreed and eliminated (Babylon, 2012). When facing the president of the organization about the findings, it...
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