Please enable JavaScript.
Coggle requires JavaScript to display documents.
1.3 MGT TECHNIQUES, BALANCED SCORE CARD & STRATEGY MAP, PROCESS…
1.3 MGT TECHNIQUES
4 BUSINESS ANALYTICS/PREDICTIVE ANALYSIS
Mgt acc uses data to understand and analyse business performance
Uses statistical methods
Regression
Correlation analysis
Predict consumer behaviour
Measure customer satisfaction
Develop models for setting prices
6 METHODS FOCUS DIRECTLY ON STRATEGY IMPLEMENTATION
5 TARGET COSTING
The desired cost for a product as determined on the basis of a given competitive price, so the product will earn a desired profit
Competitive industries
Redesign prod - add/delete features
6 LIFE-CYCLE COSTING
A method used to identify and monitor the costs of a product throughout its life cycle.
Research & Development
UPSTREAM
2 Product design, including prototyping, target costing & testing
UPSTREAM
3 Manufacturing, inspecting, packaging and warehousing
Traditionally, only here, but now all steps
DOWNSTREAM
4 Marketing, promotion, and distribution
DOWNSTREAM
5 Sales and service
DOWNSTREAM
BALANCED SCORE CARD & STRATEGY MAP
LEARNING & GROWTH
INNOVATION
EDUCATION & TRAINING
MORALE & CULTURE
COMPETENCE OF MANAGERS
Utilize hr to meet strategic goals
Develop hr to meet strategic goals
INTERNAL PROCESSES
PRODUCT YIELD & WASTE REDUCTION
CYCLE TIME - RECEIVE ORDER TO DELIVERY TIME
PRODUCTIVITY
MANUFACTURING
PRODUCT QUALITY
Effectiveness producing product/service
Efficiency producing product/service
CUSTOMER SATISFACTION
BRAND RECOGNITION
CUSTOMER SATISFACTION - CUST SURVEY
ON-TIME DELIVERY
CUSTOMER SERVICE - COMPLAINTS
MARKET SHARE & GROWTH IN MARKET SHARE
low cost
service
quality
FINANCIAL PERFORMANCE
satisfies owners?
INCREASE IN STOCK PRICE
CASH FLOW
BOND & CREDIT RATINGS
DIVIDEND GROWTH
EARNINGS GROWTH
SALES GROWTH
profitability
mkt value
Accounting report includes firms critical success factors in 4 areas: 1 Financial performance 2 Customer satisfaction 3 Internal processes 4 Learning & growth
STRATEGY MAP
Diagram links various perspectives in BSC
Understanding how improvement in certain critical success factors contributes to other goals & ultimate financial results
PROCESS IMPROVEMENT
BUSINESS PROCESS IMPROVEMENT
Program of continuous improvement in quality & other SUCESS FACTORS
Identify other firms as models to learn to improve CSFs
Incremental Method
BUSINESS PROCESS REENGINEERING
Positions modified, combined or eliminated by reorganizing operating & management functions.
TOTAL QUALITY MANAGEMENT
Mgt develops policies & practices to ensure products & services EXCEED CUSTOMERS' EXPECTATIONS.
Increased product functionality, reliability, durability, and serviceability.
Analyse cost consequences of different design choices
Measure & report aspects of QUALITY, eg production breakdowns, defects, wasted labour or materials, no service calls, nature of complaints, warranty costs, and product recalls.
THEORY OF CONSTRAINTS
An analysis of operations that improves profitability and cycle time by identifying the BOTTLENECK in the operation & determining most PROFITABLE PRODCUT MIX given the bottleneck
BOTTLENECK: Places where partially completed products tend to ACCUMULATE as they await processing.
Focus on SPEED IS CRUCIAL
BENCHMARKING
Process by which firm identifies it CSFs, studies BEST PRACTICES of other firms (or other business units within a firm) for achieving these critical success factors, and then implements improvements in the firm's processes to match or beat the performance of those competitors
First IMPLEMENTED by Xerox in late '70s. eg Apple for Innovation
LEAN ACCOUNTING
Uses VALUE STREAMS to measure the fin benefits of a firm's progress in implementing lean man.
Products/service into value streams/group of related p/s eg digital camera & video camera and several models of each
know IMPACTS on profitability of LM improvements.
VALUE CHAIN
Analysis tool firms use to identify the
specific step
s required to provide a product or service to the customer
identify not competitive steps
Where costs can be reduced
which activity should be outsourced
find ways to increase value for cust at 1 or more steps of chain
ACTIVITY BASED COSTING & MGT
ACTIVITY ANALYSIS
Dev of a detailed description of specific activities performed by the firm's operation
.
ABM
Uses AA & ABC to help mgt improve value of products & services & increase competitiveness
Complex operations
ABC
Improve accuracy of cost analysis by improving tracing of costs to products or to individual customers
Complex operations