Professional Documents
Culture Documents
Business Environment
Chapter 1
Overview
Mgt. vs cost
acctg.
Management Accounting
Cost accounting
Slide 3
strategy
Slide 4
Strategy
A strategy
is a game plan
that enables a company
to attract customers
by distinguishing itself
from competitors.
The
The focal point
point of a
companys
companys strategy
strategy should
should
be its
its target
target customers.
customers.
Customer value
Slide 5
Operational
Excellence
Strategy
Product
Leadership
Strategy
Slide 6
Learning Objective 1
Org. structure
Slide 7
Organizational Structure
Decentralization
Decentralization is
is the
the delegation
delegation of
of decisiondecisionmaking
making authority
authority throughout
throughout an
an organization.
organization.
C o r p o r a te O r g a n iz a tio n C h a r t
B o a r d o f D ir e c t o r s
P r e s id e n t
P u r c h a s in g
P e rso n n e l
V ic e P r e s id e n t
O p e r a t io n s
C h ie f F in a n c ia l
O f f ic e r
T re a su re r
McGraw-Hill Education (Asia)
C o n t r o lle r
Slide 8
CFO
Slide 9
Slide 10
Learning Objective 2
Value chain
Slide 11
Process Management
A business
process is a series of
steps that are followed in order to
carry out some task in
a business.
R&D
Product
Design
Customer
Manufacturing Marketing Distribution Service
Slide 12
Process Management
There are three approaches to
improving business processes . . .
Theory
of
Constraints (TOC)
Lean
Six
Production
Sigma
Traditional mnfg.
Slide 13
Forecast Sales
Order components
Store
Inventory
Store Inventory
Produce goods in
anticipation of Sales
Cont.
Slide 14
Work in
process
Materials waiting
to be processed.
Lean youtube
Large
inventories
Finished
goods
Completed products
awaiting sale.
Slide 15
Lean Production:
https://www.youtube.com/watch?v=Vjdil2nB
Cf0
Cont.
Slide 16
Lean Production
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.
Cont.
Slide 17
Lean Production
The five step process results in a pull manufacturing system
that reduces inventories, decreases defects, reduces
wasted effort, and shortens customer response times.
Customer places
an order
Create Production
Order
Generate component
requirements
Goods delivered
when needed
Production begins
as parts arrive
Components
are ordered
Cont.
Slide 18
Lean Production
Lean thinking can be used to improve business
processes that link companies together.
Slide 19
Theory of Constraints
A constraint (also called a bottleneck) is anything that
prevents you from getting more of what you want.
The Theory of Constraints is based on the observation that
effectively managing the constraint is the key to success.
Cont.
Slide 20
Theory of Constraints
2. Allow the
weakest link to
set the tempo.
Only actions
that strengthen
the weakest link
in the chain
improve the
process.
3. Focus on
improving
the weakest
link.
1. Identify the
weakest link.
6 sigma
4. Recognize that
the weakest link
is no longer so.
Garrison, Noreen, Brewer, Cheng & Yuen
Slide 21
Six Sigma
A
A process
process improvement
improvement method
method relying
relying on
on customer
customer
feedback
feedback and
and fact-based
fact-based data
data gathering
gathering and
and analysis
analysis
techniques
techniques to
to drive
drive process
process improvement.
improvement.
Refers
Refers to
to aa process
process that
that
generates
generates no
no more
more
than
than 3.4
3.4 defects
defects per
per million
million
opportunities.
opportunities.
Sometimes
Sometimes
associated
associated
with
with the
the term
term zero
zero
defects.
defects.
youtube
Slide 22
SIX SIGMA
http://www.youtube.com/watch?v=LcamODK
t-sQ
http://www.youtube.com/watch?v=H4vZN-c
MJyY
Cont.
Slide 23
Six Sigma
Ethical standards
Slide 24
Learning Objective 3
Understand the
importance of upholding
ethical standards.
Code of conduct
Slide 25
Maintain
Maintain
professional
professional
competence.
competence.
confidentiality
Competence
Follow
Follow applicable
applicable
laws,
laws, regulations
regulations
and
and standards.
standards.
Provide
Provide accurate,
accurate, clear,
clear,
concise,
concise, and
and timely
timely decision
decision
support
support information.
information.
Garrison, Noreen, Brewer, Cheng & Yuen
Slide 26
integrity
Confidentiality
Confidentiality
Ensure
Ensure that
that subordinates
subordinates do
do
not
not disclose
disclose confidential
confidential
information.
information.
Garrison, Noreen, Brewer, Cheng & Yuen
Slide 27
credibility
Integrity
Abstain
Abstain from
from activities
activities that
that
might
might discredit
discredit the
the
profession.
profession.
Slide 28
Credibility
Credibility
Disclose
Disclose delays
delays or
or
deficiencies
deficiencies in
in information
information
timeliness,
timeliness, processing,
processing, or
or
internal
internal controls.
controls.
Disclose
Disclose all
all relevant
relevant
information
information that
that could
could
influence
influence aa users
users
understanding
understanding of
of reports
reports
and
and recommendations.
recommendations.
Cont.
Slide 29
Cont.
Slide 30
Corporate
governance
Slide 31
Corporate Governance
The system by
which a company is directed
and controlled.
Board of
Directors
Incentives and
monitoring for
Top
Management
To pursue
objectives of
Stockholders
Sarbanes-Oxley act
Slide 32
The
The Act
Act requires
requires both
both the
the CEO
CEO and
and CFO
CFO to
to certify
certify in
in writing
writing
that
that their
their companys
companys financial
financial statements
statements and
and disclosures
disclosures
fairly
fairly represent
represent the
the results
results of
of operations.
operations.
The
The Act
Act establishes
establishes the
the Public
Public Company
Company Accounting
Accounting Oversight
Oversight
Board
Board to
to provide
provide additional
additional oversight
oversight of
of the
the audit
audit profession.
profession.
The
The Act
Act places
places the
the power
power to
to hire,
hire, compensate,
compensate, and
and terminate
terminate
public
public accounting
accounting firms
firms in
in the
the hands
hands of
of the
the audit
audit committee.
committee.
The
The Act
Act places
places restrictions
restrictions on
on audit
audit firms,
firms, such
such as
as prohibiting
prohibiting
public
public accounting
accounting firms
firms from
from providing
providing aa variety
variety of
of non-audit
non-audit
services
services to
to an
an audit
audit client.
client.
McGraw-Hill Education (Asia)
Slide 33
The
The Act
Act requires
requires aa public
public companys
companys independent
independent auditor
auditor
to
to issue
issue an
an opinion
opinion on
on the
the effectiveness
effectiveness of
of the
the companys
companys
internal
internal control
control over
over financial
financial reporting
reporting to
to accompany
accompany
managements
managements assessment,
assessment, and
and both
both are
are included
included in
in the
the
companys
companys annual
annual report.
report.
The
The Act
Act establishes
establishes severe
severe penalties
penalties for
for certain
certain behaviors,
behaviors,
such
such as:
as:
Up
Up to
to 20
20 years
years in
in prison
prison for
for altering
altering or
or destroying
destroying any
any
documents
documents that
that may
may eventually
eventually be
be used
used in
in an
an official
official
proceeding.
proceeding.
Up
Up to
to 10
10 years
years in
in prison
prison for
for retaliating
retaliating against
against aa
whistle
whistle blower.
blower.
Slide 34
End of Chapter 1
Slide 35