...right time and the right place. Accounting was delay the recording of transaction during process is known as back flush accounting. The system is the transaction was only recorded once the product was completed. Back flush accounting is the system that focuses on the output of organization and then work backwards when allocating costs between costs of goods sold and inventories, with no separate accounting for work in progress. According to ACCA article, in back flush accounting costs are not associated with units until they are completed or sold. Back flush accounting is also called delayed costing, as costs are not allocated to production until after events have occurred. From view by other author, back flush accounting is a costing system that omits recording some of all of the journal entries relating to the cycle from purchase of direct materials to the sales of finished goods (Robert, 2011). According to Grahame Steven, Financial Management 2006, an approach called back flush accounting has been developed to meet the requirement of JIT manufacturing which on it is not a sequential tracking system and does not account for individual transaction. Backflush accounting meshes well with Just-In-Time production system because, according to the Tax Shield Education, both Just-In-Time production and the process of backflush accounting work backward to account for cost incurred during the production process, but it does require accurate bills and records as well as controlled production...
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...UNIVERSITÄT DUISBURG ESSEN Campus Duisburg Fakultät für Ingenieurwissenschaften Abteilung Maschinenbau Institut für Produkt Engineering Transportsysteme und -logistik Keetmanstr. 3-9 47058 Duisburg Telefon: 0203 379-2785 Telefax: 0203 379-3048 eMail: bernd.noche@uni-due.de Prof. Dr.-Ing. Bernd Noche ABC-/XYZ Analysis Introduction tul Quelle: Powerpoint-Folien: Uta Horstmann ABC-Analysis 2 M0000 A short definition of ABC-Analysis The ABC-Analysis represents a simple method of material classification in respect of value and quantity. (G. Wöhe) Expressed in a more general way it is a process in order to identfy important kinds of customers, suppliers or articles. 3 ABC-Analysis M0000 The Pareto principle The so called Pareto principle indicates that for many phenomenons the following is valid: 80 % of effects are reached by 20 % of causes. The principle traces back to Vilfredo Pareto (Italian economist) who, related to Italy, had noticed that 80 % of property belonged to 20 % of the Italian population. Vilfredo Federico Damaso Pareto 1848 - 1923 4 ABC-Analysis M0000 However, the rule often is misunderstood: It seems that 80 % + 20 % = 100 %. But it can also be valid that: 80 % of effects are traced back to 10 % of causes. The principle can also be applied recursively, and not only used for 20% of the reasons : e.g. 64-4 Rule: 96-36 Rule: 64-4 Rule: 51,2-0,8 Rule: e. g. (80 – 16) % (20 – 16)% e. g. (80 + 16) % (20 + 16)% e. g. from (80•80/100)% - (20•20/100)%...
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...An investigation into JIT of Menlo Research Paper Word account: 4982 Lecturer: Dr. Shawn Wong Student name: Chen Li Student ID: 11300205 Content 1. Introduction………………………………..3-9 1.1 overview of Menlo and logistics industry………..3-7 1.2 Research Topic, question, objective…………..7-8 1.3 Research Rational/Contribution…………..8-9 2 Research Methodologies………………………..10 2.1 How to conduct paper search……………10 2.2 Research Limitation……………10 3. Presentation and discussion of research find……..11-22 3.1 What is the JIT system in the Menlo? ……………11-13 3.2 How to Menlo use JIT system in the operation? ……………13-17 3.3 What are the key challenges Menlo facing when use the JIT system? ……………17-20 3.4What are the advantages of using the JIT system? ……………20-22 4 Conclusion: ……………23-24 4.1 Summary……………23 4.2 Implication: ……………23-24 4.3 Further research opportunities: ……………24 5.Reference List…………………………….25 1. Introduction: 1.1Overview of the company: Menlo logistics was originally formed in the late 1980s. Its initial plan was to create an organization which offers customer warehouse, inventory and transportation management. On October 26, 1990, Menlo was officially formed and started as third-party logistics (3PL) services provider. The company achieved profitable growth after 1990.( http://www.con-way.com/en/logistics) Menlo...
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...Table of Contents 2 Executive Summary 4 3 Situation analysis 5 3.1 Company overview 5 3.2 Evaluation of Process Management approach at D2D 6 3.3 Evaluation of Just in Time (JIT) techique 10 3.4 Benchmarking 11 3.5 SWOT Analysis 12 4. RECOMMENDATIONS 13 Creating a value system: 14 Development of a Strategy Map 15 Reviewing the Organisational Strategy 15 Organisational Performance 16 5. Conclusion 18 6. Bibliography 19 EXECUTIVE SUMMARY The author conducted a situation analysis for D2D through analysing the approach to process management followed by D2D as well as the quality improvement techniques used by D2D. The analysis revealed the following: * Process Management at D2D- The approach followed by the company is very effective as every process is controlled and measured. This is applicable to all areas within D2D. However, the author is of the opinion that D2D should avoid implementing to many control systems to avoid their employees losing focus. It was also not clear what D2D’s market strategy; if any entails. * Just in Time (JIT) technique – The author found that certain elements such as Lead time reduction; flexible workforce and the required supplier quality assurance and implement a zero defects quality programme were being implemented at D2D. The author is however of the opinion that this is sufficient and that there is no need for D2D to implement additional elements of JIT. * Benchmarking – The assessment showed that D2D is very...
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...------------------------------------------------- Executive Summary Although Ford is a successful company in the world, with increasing competition and new technology improvement, Dell’s succeed by implementing “Virtual integration” , Teri Takai, Director of supply chain system, has to choose if Ford will make a change implementing Virtual integration based on Dell's model, or just stay as Ford is currently doing. Some are arguing that virtual integration is not feasible for Ford because of Ford’s business is totally different from Dell and business complexity makes Ford no way to go that road. However, others believe the Dell’s model will succeed in Ford as well because of new information technology and similar business principle will make it work in Ford. Ford should implement the virtual integration model even Ford is much more complex then Dell, but Ford can not simply copy Dell’s model because the vehicles are not like a computer that you can order online and delivery by a carrier. They need to create a plan based on Dell model but focus on Ford’s business and conditions. Teri Takai should be the key person and work together with IT, Purchaser s, Sales and accounting department to start the program: to reduce inventory by building strategic supplier relationship . the ordering system should change form old model ( PO to suppliers, products go to Ford warehouse and then to distribution centers, dealers then customers ) to the new model ( orders to suppliers...
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...Introduction Supply chain management is an integral component of operation management and has a direct effect on how successfully organizations function. The purpose of supply chain management is to remove communication barriers and eliminate redundancies by coordinating, monitoring, and controlling processes within an organization. Identifying the components of the supply chain, facilitating better decision-making, creating improved communication, and identifying weak links in the chain causing bottlenecks in an organization are crucial to supply chain integration. There are three principle elements of supply chain integration: management of information and financial flows, inventory management, and management of relationships of trading partners (Power, 2005). Modern businesses are dynamic in nature and to stay competitive (organizations) need to optimize their business processes by understanding and reacting to the rapid changes in their environment' (Banavar, Black, Caceres, Ebling, et al, 2005). Dialysis, a specialized field in the healthcare industry, is a major business entity with penchant for a rapidly changing environment. Dialysis is a medical treatment for individuals with limited or no kidney function and without this specialized therapy these unfortunate individuals would not survive. In dialysis, supply chain management is crucial from all aspects in providing comprehensive and adequate patient care. The constant changing needs of patients and the organizational...
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...MAKERERE UNIVERSITY MAKERERE UNIVERSITY BUSINESS SCHOOL FACULTY OF MARKETING AND INTERNATONAL BUSINESS IMPACT OF INVENTORY MANAGEMENT AND PROFITABILITY OF A COMPANY A CASE OF KK FOODS EXPOTORS LIMITED AMANYA AMOS 12/U/15971/EVE SUPRRVISED BY ATUGONZA FAITH A RESEARCH REPORT SUBMITTED TO MAKERERE UNIVERSITY BUSINESS SCHOOL IN PARTIAL FULFILMENT OF THE REQUIREMENTS FOR THE AWARD OF DEGREE OF BACHELOR OF INTERNATIONAL BUSINESS OF MAKERERE UNIVERSITY APRIL, 2015 DECLARATION I declare that this research report is my original work compiled from my personal exposure in the stated fields and never previously submitted by anyone to any other university or institution for any award. Signature..…………………………… Date……………………………… AMANYA AMOS 12/U/15971/EVE APPROVAL This research report by Amanya Amos has been submitted for examination with my approval as her academic supervisor. Signature..………………………… Date……………………………… ATUGONZA FAITH (ACADEMIC SUPERVISOR) DEDICATION This work is dedicated to all my family members who have worked so hard to educate me. My the lord bless them ACKNOWLEGMENT To begin with, I thank the Lord Almighty for having blessed me with all that I have always needed in my life, and seeing me through up to this level that I have reached. I owe special thanks to KK Foods Exporters limited to be attached to their organization. I really have to owe special thanks to my mother Mrs.Baguma Beatrice, my sisters patience Penelope and Kobusinge...
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...Accounting at the Harvard Business School. He had wrote a journal entitled “The Evolution of Management Accounting” in 1983. The purpose of this article is to summarize the development of management accounting, including the new demands for management information, and to develop a research strategy to meet these demands i) THE EVOLUTION OF MANAGEMENT ACCOUNTING (From Robert S. Kaplan point of view) In his paperwork, he divided it into five sections. • Section 1 - Development of cost accounting practices from the early textile mills and railroads (circa 1850) through the formation of the great industrial enterprises in the U.S. and the emergence of the scientific management approach. • Section 2 - Management control innovations of the DuPont Corporation and the General Motors Corporation after its reorganization by Pierre du Pont and Alfred Sloan in 1920. • Section 3 - Development in cost accounting and managerial control form 1925 to the present. • Section 4 - Challenges from the contemporary environment that may not be met by the accounting practices developed more than 60 years ago for a substantially different competitive situation. • Section 5 - Agenda for field based research to document or develop innovative management control practices appropriate for the changing industrial environment. ii) A SUMMARY OF HISTORICAL DEVELOPMENTS IN MANAGEMENT ACCOUNTING STAGE 1 - COST ACCOUNTING The development of cost accounting and management control practices...
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...lOMoARcPSD Summary: Book " Purchasing and Supply Chain Management ", Arjan J. van Weele Purchasing Management (Maastricht University) Distributing prohibited | Downloaded by Paulina Gali?ska (p.s.galinska@gmail.com) lOMoARcPSD No one cares if you are fair or not. Use this summary, share it with you friends and good luck studying for your exam. Summary Purchasing and Supply Chain Management – Van Weele 6th Edition Jonas Heller Distributing prohibited | Downloaded by Paulina Gali?ska (p.s.galinska@gmail.com) lOMoARcPSD Summary: Purchasing and Supply Chain Management 10/19/14 TABLE OF CONTENT Chapter 1: The Role of Purchasing in the Value Chain ............................................................................................................... 5 The role of Purchasing and in the Value Chain (P.5) .............................................................................................................. 5 Main differences between buying for primary activities and buying for support activities (P. 7): ........................................ 6 Definition of the concepts (p.7) ............................................................................................................................................. 6 Importance of Purchasing to Business (P.12): ....................................................................................................................... 7 Classification of purchasing goods (p. 15):...
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...International Journal of Production Research Vol. 48, No. 20, 15 October 2010, 5943–5961 The impact of market focus on operations practices Tritos Laosirihongthonga, Keah Choon Tanb* and Vijay R. Kannanc Department of Industrial Engineering, Thammasat University, Klong Luang, Pathumtanee 12121, Thailand; bDepartment of Management, University of Nevada, Las Vegas, Las Vegas, NV 89154-6009, USA; cJon M. Huntsman School of Business, Utah State University, Logan, UT 84322-3555, USA (Received 17 December 2008; final version received 3 August 2009) A key element of successful organisations is the alignment of their strategy and tactics. This study explores the relationship between a firm’s competitive strategy and its operations practices in the context of a developing economy. Two competitive strategies are examined; a niche market strategy characterised by targeting specific market segments, and a broad market strategy characterised by serving a wide range of market segments. Three sets of operations practices consistent with the adoption of lean manufacturing, Total Quality Management, and relationship development in a supply chain context, are explored. Using survey data from senior managers in Thailand, results show that for firms adopting a niche market focus, competitive strategy directly influences process management and relationship development, which in turn affect workforce commitment. Only workforce commitment has a direct effect on operational performance. In contrast...
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...JIT Just in time (JIT) is a production strategy that strives to improve a business return on investment by reducing in-process inventory and associated carrying costs. Just-in-time production method is also called the Toyota Production System. To meet JIT objectives, the process relies on signals or Kanban (看板 Kanban?) between different points in the process, which tell production when to make the next part. Kanban are usually 'tickets' but can be simple visual signals, such as the presence or absence of a part on a shelf. Implemented correctly, JIT focuses on continuous improvement and can improve a manufacturing organization's return on investment, quality, and efficiency. To achieve continuous improvement key areas of focus could be flow, employee involvement and quality. Quick notice that stock depletion requires personnel to order new stock is critical to the inventory reduction at the center of JIT. This saves warehouse space and costs. However, the complete mechanism for making this work is often misunderstood. For instance, its effective application cannot be independent of other key components of a lean manufacturing system or it can "...end up with the opposite of the desired result." In recent years manufacturers have continued to try to hone forecasting methods such as applying a trailing 13 week average as a better predictor for JIT planning; however, some research demonstrates that basing JIT on the presumption of stability is inherently flawed. ------------------------------------------------- ...
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...B1. Historical Analysis Historical analysis of Custom Snowboards financial statements shows the company’s net sales from 2012 to 2014. Net Sales In 2012 custom snowboards net sales were $6,874,700, net sales and continued to increase by .2% in 2013. Sales continued to increase throughout 2014, with net sales of $6,955,200 an overall increase of 1.2% from 2012 two 2014. Current Ratio Custom Snowboards profitability was at its highest in 2013 when the company’s Current Ratio was 7.06 in 2013 which would suggest that Custom Snowboards ability to pay its debts and or liabilities was very strong, while still maintaining the normal day to day business operations. In 2014 Custom Snowboards current ratio fell by .5 to 6.56 however, the company was again able to maintain its daily operations and pay its short-term debts. A current ratio of 4.20 could also be considered “too” high when compared to when it’s competitor Winter Sports because it could be an indication that Custom Snowboards should be investing the excess “cash” or not taking enough risks and investing money back into the company for continued growth and should be making a profit from those extra funds. Net Earnings Custom Snowboards financial statements also reveal a significant decrease in the company’s net earnings from 2012 to 2014. Custom Snowboards net earnings decreased tremendously in 2014 from 2012 by $85,275 or 47.7%. Custom snowboards operating expenses increased overall from 2012 two 2014 x 8.2% or...
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...TITLE PAGE: CREATING AND MANAGING SUSTAINABILE SUPPLY CHAIN MANAGEMENT Article caption Supply chain concerns the flow of goods and services from one point to another. The author Stefan Schalteger and Roger Burritt (2014), measuring and managing the supply chain management is critical to the organization and will remain to maintain the efficiency in the organizations in the world today. Srivastava, Samir K (2010) states that by building on sustainability in the supply chain will ensures that the management is doing the right thing in managing the organization hence creating competitive advantage. Statement of the author's purpose The major reason why the author wrote the article about this topic is to address the need of building sustainable supply chain in all organizations. Secondly is to explore and create the understanding of supply chain. He also develops the practical approach that develops sustainable supply chain performance management. Finally, the author explains the measurement of the sustainable supply chain in all the industries. From the point of view of the author, he is of the mind that the building a sustainable supply chain in an organization is one of the ways that organizations will smoothen the flow of services in the organization. Application of supply chain management theory relevant to article Supply chain management is the management of the flow of the firm’s goods and services from one point to the other. His explanations on the relevant concepts of...
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...World Journal of Social Sciences Vol. 1. No. 1. March 2011. Pp. 148 - 164 Significance of Management Accounting Techniques in Decision-making: An Empirical Study on Manufacturing Organizations in Bangladesh Farjana Yeshmin* and Md. Amran Hossan** Management accounting is concerned with gathering and reporting internal financial information to facilitate decision-making process. As management accounting is not required to conform to national accounting standards, it allows business to customize the management accounting techniques as per demand of company. As a process of this customization, some advanced quantitative as well as number of qualitative techniques accompany with the traditional techniques, have been emerged to cater the information need in decision making. This study attempts to measure the significance of management accounting techniques in decision making of the selected manufacturing organizations in Bangladesh. In doing so, a total of 74 manufacturing organizations have been surveyed with a structured questionnaire by using 5 point Likert Scale measurement from different categories of manufacturing organizations. Findings reveal that cash flow statement analysis, ratio analysis, budgetary control, CVP analysis, variance analysis and fund flow analysis have been frequently high-ranking techniques. Secondly, the authors have recognized five factors to calculate the variability in decision-making with the help of rotated component matrix which shows that 75.125...
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...RELEVANCE LOST (DISCUSSIE EN ONTWIKKELINGEN) Relevance lost is a title of the book written by Johnson and Kaplan, where they were complaining that management accounting techniques emerged centuries ago, are still used, but they no longer relevant in today’s highly competitive environment. CHAPTER 5 - CONTROLLING THE MULTI DIVISIONAL ORGANIZATION 64. What are the two major obstacles to the success of the integrated firm? 1. Complexity - or the bureaucratic paralysis caused by complexity. 2. Management indifference to the owner's goals (p.94). This potential problem resulted when managers replaced owners in performing the managerial functions. 65. How did the integrated firms cope with these problems? Multi divisional firms might have developed better accounting systems, (e.g., using Church's ideas) but instead they coped with these obstacles using decentralization (p.94-96). In decentralized firms, top management plans strategy, while subordinate managers coordinate and control operating activities (p.97). 66. What was the New Use Developed For ROI? J&K indicate that ROI was used to delegate responsibility and allocate funds, i.e., capital (p.98). (Note: Technically, responsibility can be assigned, but not delegated. The authority to act on one's behalf can be delegated as when someone is hired to do a tax return, but the taxpayer is still responsible.) 67. Success of multi divisional firms depends on the management accounting system to perform three task...
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