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11b.introduction To Cost Management - Addl. Student Supplement
11b.introduction To Cost Management - Addl. Student Supplement
Customer
Intimacy
Strategy
Operational
Excellence
Strategy
Product
Leadership
Strategy
McGraw-Hill/Irwin
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Process Management
Organizational Structure
A business
process is a series of
steps that are followed in order to
carry out some task in
a business.
Personnel
Vice President
Operations
Chief Financial
Officer
Treasurer
R&D
Product
Design
Customer
Manufacturing Marketing Distribution Service
Controller
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1-4
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Lean Production
Large
inventories
Work in
process
Finished
goods
Materials waiting
Completed products
to be processed.
awaiting sale.
Partially completed products
requiring more work before
they are ready for sale.
Identify value
in specific
products/services.
Identify the
business process
that delivers value.
Organize work
arrangements around
the flow of the
business process.
Continuously pursue
perfection in the
business process.
Create a pull
system that responds
to customer orders.
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Lean Production
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Theory of Constraints
A constraint (also called a bottleneck) is anything that
prevents you from getting more of what you want.
Customer places
an order
Create Production
Order
Generate component
requirements
Goods delivered
when needed
Production begins
as parts arrive
Components
are ordered
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1-8
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Theory of Constraints
Six Sigma
2. Allow the
weakest link to
set the tempo.
Only actions
that strengthen
the weakest link
in the chain
improve the
process.
1. Identify the
weakest link.
Sometimes
associated
with the term zero
defects.
4. Recognize that
the weakest link
is no longer so.
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Six Sigma
Stage
Define
Measure
Analyze
Improve
Control
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Recognize and
communicate professional
limitations that preclude
responsible judgment.
Maintain
professional
competence.
Competence
Follow applicable
laws, regulations
and standards.
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1-4
Mitigate conflicts of
interest and advise others
of potential conflicts.
Refrain from
conduct that
would prejudice
carrying out
duties ethically.
Confidentiality
Integrity
Abstain from activities that
might discredit the
profession.
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Corporate Governance
Credibility
The system by
which a company is directed
and controlled.
Disclose delays or
deficiencies in information
timeliness, processing, or
internal controls.
Board of
Directors
Incentives and
monitoring for
Top
Management
To pursue
objectives of
Stockholders
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1-5
A process used
by a company to
proactively identify
and manage risk.
Customers
Employees
Suppliers
Communities
Stockholders
Environmental
& Human Rights
Advocates
End of Chapter 1
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