Measuring and Managing Process Performance

Category: Experiment, Force
Last Updated: 06 Jul 2021
Pages: 2 Views: 17
Table of contents

Takeaway sad chapters management accounting information for activity and process decisions

After reading this chapter, you will be able to:

1) define sunk costs and explain why sunk costs are not relevant.

Order custom essay Measuring and Managing Process Performance with free plagiarism report

feat icon 450+ experts on 30 subjects feat icon Starting from 3 hours delivery
Get Essay Help

2) analyze make-or-buy decisions.

3) demonstrate the Influence of qualitative factors In making decisions.

4) compare the different types of faculties layouts.

5) expelled the theory of constraints

6)demonstrate the value of Just- In-time manufacturing systems,

7)describe the concept of the cost of quality. ) calculate the cost savings resulting from reductions

In Inventories,reduction In reduction cycle time,production yields improvement, and reductions in rework and defect rates.

Short Case For 50 years, the Tabor Toy Company had been producing high-quality plastic toys for children. In early 2006,Tabor experienced a large drop In sales and market share, After some Investigations,TLS loss was attributed to a significant decreases In the quality of the product and to general delays In getting It to customers.

After several weeks tot study,Don and a cross-functional team tot management personnel documented and numerous shop floor problems. Don Pipeline,senior managers report to top management raised several questions.

  1. Should many of the existing machines,including the major unaccommodating machine must be replaced.
  2. What should the company do about the local vendor who produced the faulty computer chips?
  3. WSDL It make sense to Implement an entirely new production process such as SIT?

This chapter presents three types of facility designs

l) Process layouts

2) Product layouts,and manufacturing-all it which can be used to help organizations reduce costs. We follow this with a discussion of how organizations can reduce costs by ensuring that they focus on improving the quality of their processes. Finally the SIT manufacturing system is presented as a system that integrates many of the ideas we discuss in the chapter. 1 valuation Financial Implications(p. 208) Managers must evaluate the financial implications tot decisions that require trade- offs between the costs and the benefits of different alternatives. Equally important,they must recognize that some costs and revenues are not relevant in such evaluations.

Assuming responsibility for decisions

On a technical level,the correct decision for Bonnier Company is to dispose of the machine and replace it;however,because they are concerned about their reputations within their own organizations,not all managers would do so. 8 3 Make or Buy Decisions Management accountants often supply information about relevant costs and revenues to help managers make special one-time decisions. One example is a make- or-buy decisions.

As managers attempt to reduce costs and increase the competitiveness of their products, they face decisions about whether their companies should manufacture some parts and components for their products in- house or subcontract with another company to supply these parts and components. Exhibit 5-3 displays details of the two lowest equates from outside suppliers for a representative lamp in each of the four product lines manufactured in-house. The should accept the outside bid and terminate the in-house production of these product?

Cite this Page

Measuring and Managing Process Performance. (2018, Aug 26). Retrieved from

Don't let plagiarism ruin your grade

Run a free check or have your essay done for you

plagiarism ruin image

We use cookies to give you the best experience possible. By continuing we’ll assume you’re on board with our cookie policy

Save time and let our verified experts help you.

Hire writer