management techniques

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sp2010_9_9

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Management Techniques : 

Management Techniques CSU Chico, Accounting 202

Goals : 

Goals How to select a Management Philosophy Theory of Constraints Six Sigma Activity Based Costing Lean Production

Theory of Constraints : 

Theory of Constraints Focuses on the Problem Who Uses TOC? - mostly used by Variable Costing companies. - also used by Job Costing Companies Bottleneck: limits total output of an entire system.

Product mix Optimization : 

Product mix Optimization Identifies and Exploits CCR (Capacity Constrained Resource) Approached based on IA (Immune Algorithm) Increases the Global Convergence Rate of Immune Evolution

Activity Based Management : 

Activity Based Management Phase 1 Introduced in 1960, by General Electric An effort to control indirect costs Phase 2 Began in the 1970’s Improved product cost information. Smarter pricing and product mixed decisions.

Activity Based Management : 

Activity Based Management Why use Activity Based Management? Eliminates waste Reduces defects Diverse Does not Conform to GAAP Used for internal reports http://www.allbusiness.com/accounting/229332-1.html

6-Step process : 

6-Step process

Lean Production : 

Lean Production Goals Eliminate Finished Goods Inventory Reduce Work in Progress Inventory Importance Minimal change in Income under Absorption & Variable Costing

Net Income using Lean Production : 

Net Income using Lean Production

Six Sigma : 

Six Sigma History developed by Motorola in 1981 Intended to strive for perfection 3.4 defects per Million Opportunity Top Management CEO’s Must Support Improvement Projects Team Leaders must be able to execute

Six Sigma : 

Six Sigma Define: Establish the scope of the project Measure: Narrow scope to the most important problems Analyze: Identify the Root Causes Improve: Implement Solutions to the problem Control: Ensure that problems are fixed

8-Step Implementation : 

8-Step Implementation Six Sigma 8-Step Implementation 1. Create a Burning Platform “Why is quality costing us more than 45% of our total costs.”

Six Sigma : 

Six Sigma Six Sigma 8-Step Implementation 2. Put Resources in Place Implement a shared vision.

Six Sigma : 

Six Sigma Six Sigma 8-Step Implementation 3. Teach the Methodology Management should make sure employees share Organizations vision.

Six Sigma : 

Six Sigma Six Sigma 8-Step Implementation 4. Prioritize Activities Are Activities Meeting Expectations.

Six Sigma : 

Six Sigma Six Sigma 8-Step Implementation 5. Establish Ownership Committed Team Members Must be held Accountable

Six Sigma : 

Six Sigma Six Sigma 8-Step Implementation 6. Take the Right Measurements Use Data Correctly Determine Baseline Performance

Six Sigma : 

Six Sigma Six Sigma 8-Step Implementation 7. Govern the Program Schedule Regular Meetings Structure is needed

Six Sigma : 

Six Sigma Six Sigma 8-Step Implementation 8. Recognize Contributions Reward Success Increases enthusiasm

The End : 

The End

APA : 

APA Cortese-Danile, T. M. (n.d.). All Business. Retrieved April 19, 2010, from http://www.allbusiness.com/ Kotelnikov, VK. (n.d.). Lean production. Retrieved from http://www.1000advices.com/guru/processes_lean_prod uction_vk.html