ACCT-4100 Lecture Notes - Lecture 4: Overproduction
5 Mar 2018
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Wilkerson case: calculations: abc versus traditional, contribution margin: removes direct costs, consider impact on decisions, product choice matters, calculations matters. Managers: using resources, departmental goals, meeting the budget. Decisions made by value stream (vs) and cell teams: not functional managers. Cross-functional managers: requires different organization, encourages optimizing the whole team, want to do, communication, information aggregated at vs level. Red circles are the flow of information. Value streams: all the processes required to create value of a customer , shipping quality product on time to the customer with all the processes involved, value stream management: Identify value streams: examples, current products-product sustaining. Value-adding changes the value of an item: drilling, assembling, painting, cutting. Does not change the value: sorting, counting, stacking, expediting, checking, service: Non-value-adding: customer"s time and money: greeting, completing, cleaning, delivering, building, checking, asking, fixing, apologizing, re-doing, wastes:
