高级管理会计学课件：lesson 9 performance management and sustainability

1、1Performance management and sustainability Lesson 92Introduction of lesson 9This lesson provides an overview of issues in management accounting related to performance management and sustainability.Sustainability in the business sense is the ability to maintain operations and endure. However, sustain

2、able in a wider sense focuses on enduring social systems and natural environments, as well as sustainable organizations.Study the strategic implications of sustainability and learn how managers can incorporate elements of sustainability into the decision-making process.3Lesson 9 Topics outlineAnalyz

3、ing and improving qualityQuality cost report Time and competitivenessTheory of constraintsSustainability accountingSustainability and strategy4Topic 1: Analyzing and improving qualityLearning Objective Describe various approaches to analyzing and improving quality. (Level 2)No Required readingProces

4、s viewComponents in quality control process 1. Establishing standing2. Inspecting to ensure standards are maintained3. Correct action 4. Variance preventionQuality Management Tools and TechniquesTotal Quality Management (TQM)Continuous ImprovementQuality Function Deployment (QFD)Six SigmaStatistical

5、 Process Control (SPC)Sampling, Inspection and TestingThe Quality Assurance and Quality Control GroupAssuring the Quality of Purchased ServicesSupplier CertificationSix SigmaThere are no more than 3.4 defects per million opportunities.A philosophy and methodology with five steps: define, measure, an

6、alyze, improve, control (DMAIC).A set of tools, including statistical process control (SPC), control chart, failure mode and effects analysis, and flowcharting.six sigma modelingThe idea of six sigma comes from the notion that if one has six standard deviations between the process mean and the neare

7、st specification limit, practically no items will fail to meet specifications.Demings Plan-Do-Check-Act Cycle.The DMAIC project methodology has ve phases: Define a problem or improvement opportunity. Measure process performance. Analyze the process to determine the root causes of poor performance; d

8、etermine whether the process can be improved or should be redesigned. Improve the process by attacking root causes. Control the improved process to hold the gains.The DMAIC project methodology12Topic 2: Quality cost reportLearning Objective Identify relevant cost and benefits of quality improvements

9、, explain how manager use quality cost information, and evaluate qualtiy performance. (Level 1)No Required reading13Quality cost report (QCR)QCR: The report shows the types of quality cost being incurred, and their significance and trends.14Advantages of quality cost report Help managers see the fin

10、ancial significance of defects; Help managers identify the relative importance of the quality problems; and Help managers see whether their quality costs are poorly distributed.15Limitations of quality cost report Simply measuring quality cost problems does not solve quality problems.Results usually

11、 lag behind quality improvement programs.The most important quality cost, lost sales, is often omitted from quality cost reports.EXAMPLE 9.2-1Preparing a COQ reportStep 1: Determine direct and indirect quality costStep 2: Categorize quality costsStep 3: Analyze nonfinancial information20X520X620X7Ra

12、w materialsPercentage of returns over deliveriesWire4%3%1%Component parts15%10%8%Batteries10%5%5%Percentage of suppliers ISO compliant12%15%25%Production processesDefect rate5%4%3.5%Line downtime1%0.9%0.75%MarketingPercentage high customer satisfactionrating45%47%54%Percentage on-time deliveries87%8

13、9%93%22Topic 3: Time and competitivenessLearning ObjectiveDescribe the effects of the industry life cycle and time on competitiveness, and how these effects can be managed. (Level 2)No Required readingLife cycle theoryThe product life cycle theory was first introduced in the 1950s to explain the exp

14、ected life cycle of a typical product from design to obsolescence, a period divided into the phases of product introduction, product growth, maturity, and decline.As product, anindustrylife cycle is a series of stages of development anindustrymoves through, from the time of emergence to an eventual

15、decline. There are typically three stages in the industry lifecycle: growth stage, maturity stage, decline stage.产业生命周期与产品生命周期的关系Product life cycle theoryIntroduction Growth Maturity Decline(d) Classical Life Cycle PatternTimeSalesProfitsLossCommon Product Life CurvesPLC and BCG modleIndustry life c

16、ycle Characteristics of the industry life cycle产业生命周期一般形态对应的企业状况Effective management of the life cycle Use of market disruption Technological substitution Disruptive market innovation Institution change Developing dynamic capabilities 33Time and competitivenessCompetitive markets demand shorter new-

17、product development and more rapid response to customersResponding efficiently to customers needs can make a firms reputationFailure to respond quickly can send customers to the competition. Time is an increasingly important strategic factor. Proper time management can increase revenues and decrease

18、 costs.34Customer-response time Customer-response time is how long it takes from the time a customer places an order for a product or service to the time the product or service is delivered to the customer. 35Customer-response time Customer places order Order is set upProduction startedOrder is deli

19、veredManufacturing cycle (lead) timeCustomer-response timeOrder isproducedReceipt time Delivery timeOrder Received bymanufacturingWaiting time Manufacturing time 36Average waiting time is the average time an order will wait in line before being processed.An important factor in production schedulingA

20、verage waiting time =Example38On-time performance On-time performance refers to situations in which the product or service is actually delivered at the time it is scheduled to be delivered.On-time performance increase customer satisfaction. We always arrive at the scheduled times!39Topic 4: Theory o

21、f constraintsLearning ObjectiveIn the context of the theory of constraints, identify strategies for managing constraints. (Level 1)Required readingsHorngren: Chapter 19, pages 708-711, from “ Theory of Constraints and Throughput- Margin Analysis” up to “Problem for Self-Study”40Theory of Constraints

22、The Theory of Constraints (TOC)is a systemic approach to improving throughput by identifying the bottleneck or constraint in a system. By “breaking” the bottleneck, additional throughput can be obtained. TOC is an approach to continuous improvement, as another bottleneck will emerge as one is broken

23、.41Measures in TOCThroughput margin is a key measure in TOC. It equals revenues minus the direct materials costs of goods sold.Investments, a second measure, is the sum of materials costs in direct materials, work in process, and finished goods, inventory, R&D costs, and the cost of equipment and bu

24、ildings.A third measure is operating costs, defined as all costs of operations (other than direct materials) incurred to earn throughput contribution.42How to manage bottlenecks The objective of TOC is to increase throughput contribution while decreasing investments and operating costs.Keep in mind

25、that TOC embraces a very short-term horizon and treats operating costs as fixed. The key to improvement under the theory of constraints is managing the bottleneck operations. 43How to manage bottlenecks Several steps in managing the bottleneck operation:Recognize that the bottleneck operation determ

26、ines throughput contribution of the entire system.Recognize the bottleneck operation by identifying operations with large quantities of inventory waiting to be worked on.Keep the bottleneck operation busy and subordinate all nonbottleneck operations to the bottleneck operation.Take actions to increa

27、se the efficiency and capacity of the bottleneck operation.Re-evaluate and repeat44 Increase the efficiency of the bottleneck operation Several actions may be taken:Eliminate idle time at the bottleneck operation.Process only those parts or products that increase throughput contribution, not parts o

28、r products that will remain in inventory.Shift products that do not have to be made on the bottleneck machines to outside processing facilities.Reduce setup time and processing time at the bottleneck operations.Improve the quality of parts or products manufactured at the bottleneck operation.Applyin

29、g the TOC1. Product mix optimization and profit maximization2. Production planning and control3. Assembly, shipping, and space controls.4. Project management and time budgets.5. Performance management46Topic 5: Sustainability accountingLearning ObjectiveDescribe the three perspectives of sustainabil

30、ity accounting and the importance of common sustainability framework. (Level 2)Required readingsERH, unit C7: “Getting to the bottom of the triple bottom line”Sustainability accountingSustainability accounting(also known associal accounting) was originated about 20 years ago. It is a tool used by or

31、ganizations to become more sustainable. The most known widely used measurements are the triple bottom line accounting and the corporate sustainability reporting.Sustainability financial accounting focus on the disclosure of non-financial information about a firms performance to external parties . Su

32、stainability managerial accounting is used for internal decision making and the creation of new policies that will have an effect on the organizations performance at economic, ecological and social. The triple bottom lineTriple Bottom-line, involves 3 bottom-lines“: economic, social and environmenta

33、l.The idea behind 3BL is that social responsibility can, and should, be measured, calculated, reported and audited.3BL is consistent with the broad stakeholder perspective of corporate social responsibility (CSR).EnvironmentSocial EconomicAn Enterprises Triple Effect on SocietyBusinessImpactSustaina

34、ble Development Equal OpportunitiesWaste ControlEducation & CultureEmissions Community RegenerationEnergy Use Human Rights Product EmployeeLife-cycle VolunteersProduct Wealth Productive Ethical Value Generation Employment TradingThree dimension of sustainabilityCorporate sustainability reporting Sustainability reporting is the practice of measuring, disclosing and being accountable to internal and external stakeholders for organizational performance towards the goal of sustainable development.Departure from sole economic focusTied to the concept and goal of sustainable developmentNew a