Professional Documents
Culture Documents
TO CONTEMPORARY
MANAGEMENT
ACCOUNTING
EVOLUTION
STAGE 1
STAGE 2
STAGE 3
E
STAGE 4
Consortium of Advanced Mgt. Intl.
Source: www.maaw.info
AN OVERVIEW
OF
MANAGEMENT
ACCOUNTING TOOLS
CONT.
MANAGEMENT ACCOUNTING
TOOLS
Business Process Reengineering (BPR)
Benchmarking
Theory of Constraints (TOC)
Six Sigma
Etc.
SIX SIGMA
Six Sigma
A quality improvement and business strategy
concept started by Motorola in 1987
In statistical terms, the abbreviated form of 6
standard deviations from the mean
Translates to about 2 defects per billion
BELTS
SIX SIGMA
http://www.youtube.com/watch?
v=LcamODKt-sQ
http://www.youtube.com/watch?
v=H4vZN-cMJyY
TOC
TYPES
CONT.
TOC
https://www.youtube.com/watch?
v=mWh0cSsNmGY
MANAGING
Managing Constraints
Relaxing constraints by expanding the
capacity of a bottleneck operation
HOW?
RELAXING
Relaxing Constraints
TOC scheduling
Outsourcing all or part of the bottleneck
operation
Investing in additional production equipment
Working overtime at the bottleneck operation
Retraining employees and shifting them to the
bottleneck
Estimating any non-value-added activities at
the bottleneck operation
CONT.
Benchmarking
Pioneered by Xerox Corporation in 1979;
Search for the most effective method of
accomplishing a task
Involves identifying the best practices, and
Comparing an organization's performance to
those practices with the goal of improvement
TYPES
Types of Benchmarking
Internal across units
External
- Competitive benchmarking via competitors
- Functional benchmarking- with firms in the
same industry but not competing
- Generic benchmarking- with non-competitors
outside the firms industry
CONT.
END
End of Presentation