Kế toán, kiểm toán - Chapter 16: Managing suppliers, customers and quality

Chapter 16Managing suppliers, customers and quality1Supply-chain managementProcesses of streamlining the supply chain by managing costs, accelerating time-to-market of new products, and creating close relationships with supplier and customersMay include the adoption of e-commerce technologies and cost management techniques2Copyright  2003 McGraw-Hill Australia Pty Ltd, PPTs t/a Management Accounting: An Australian Perspective 3/e by Langfield-Smith, Thorne & HiltonSlides prepared by Kim Langfield-SmithAnalysing supplier costsActivity-based costing can be used to estimate the costs of dealing with suppliersCosts associated with dealing with a particular supplier, other than the cost of purchased material and componentsCosts of purchasing - ordering, receiving and inspectionCosts of holding inventoryCosts of poor qualityCosts of delivery failure3Copyright  2003 McGraw-Hill Australia Pty Ltd, PPTs t/a Management Accounting: An Australian Perspective 3/e by Langfield-Smith, Thorne & HiltonSlides prepared by Kim Langfield-SmithManaging suppliersEvaluating supplier performanceSupplier performance index: the ratio of supplier cots to total purchase priceMeasures may include ability to supply at the contact price, material quality, supplier delivery performance, quality of relationships between employees, union and managementMeasure may also focus on the purchasing firm’s performance within the relationship4Copyright  2003 McGraw-Hill Australia Pty Ltd, PPTs t/a Management Accounting: An Australian Perspective 3/e by Langfield-Smith, Thorne & HiltonSlides prepared by Kim Langfield-Smith5Copyright  2003 McGraw-Hill Australia Pty Ltd, PPTs t/a Management Accounting: An Australian Perspective 3/e by Langfield-Smith, Thorne & HiltonSlides prepared by Kim Langfield-SmithManaging inventoryWhy hold inventory?Cope with uncertainties in customer demand and in production processes Qualify for quantity discountsAvoid future price increases in raw materialsAvoid the costs of placing numerous small orders with suppliers6Copyright  2003 McGraw-Hill Australia Pty Ltd, PPTs t/a Management Accounting: An Australian Perspective 3/e by Langfield-Smith, Thorne & HiltonSlides prepared by Kim Langfield-SmithConventional approaches to inventory managementFocused on balancingOrdering costs: the incremental costs of placing an order for inventoryCarrying costs: the costs of carrying inventory in stockShortage costs (or out of stock costs)7Copyright  2003 McGraw-Hill Australia Pty Ltd, PPTs t/a Management Accounting: An Australian Perspective 3/e by Langfield-Smith, Thorne & HiltonSlides prepared by Kim Langfield-SmithEconomic order quantity (EOQ)The optimum order size for individual inventory items, to minimise the total ordering and carrying costs8Copyright  2003 McGraw-Hill Australia Pty Ltd, PPTs t/a Management Accounting: An Australian Perspective 3/e by Langfield-Smith, Thorne & HiltonSlides prepared by Kim Langfield-SmithTiming of orders under EOQInventory re-order point (ROP)The level of inventory on hand that triggers the placement of a new order (or setup)Safety stockThe extra inventory kept on hand to cover any above-average usage or demand9Copyright  2003 McGraw-Hill Australia Pty Ltd, PPTs t/a Management Accounting: An Australian Perspective 3/e by Langfield-Smith, Thorne & HiltonSlides prepared by Kim Langfield-SmithAssumptions underlying EOQDemand is known and constantIncremental ordering costs are known, constant per orderAcquisition cost per unit is constantEntire order is delivered at one timeCarrying costs are known, constant per unitOn average, one-half of order is in stock at any time10Copyright  2003 McGraw-Hill Australia Pty Ltd, PPTs t/a Management Accounting: An Australian Perspective 3/e by Langfield-Smith, Thorne & HiltonSlides prepared by Kim Langfield-SmithJust-in-time (JIT) inventory managementJIT inventory and production systemA comprehensive system for controlling the flow of manufacturing in a multistage production environmentThe underlying philosophy is the simplifying of the production process by removing non-value-added activities11Copyright  2003 McGraw-Hill Australia Pty Ltd, PPTs t/a Management Accounting: An Australian Perspective 3/e by Langfield-Smith, Thorne & HiltonSlides prepared by Kim Langfield-SmithKey features of JIT productionA pull method of co-ordinating production, uses kanbansSimplified production processesPurchase of materials, and manufacture of sub-assemblies and products in small lotsQuick and inexpensive setups of production machinerycontinued12Copyright  2003 McGraw-Hill Australia Pty Ltd, PPTs t/a Management Accounting: An Australian Perspective 3/e by Langfield-Smith, Thorne & HiltonSlides prepared by Kim Langfield-SmithKey features of JIT productionHigh-quality levels for raw materials, components and finished productsEffective preventative maintenance of equipmentFlexible work teams13Copyright  2003 McGraw-Hill Australia Pty Ltd, PPTs t/a Management Accounting: An Australian Perspective 3/e by Langfield-Smith, Thorne & HiltonSlides prepared by Kim Langfield-SmithJIT purchasingOnly a few suppliersLong-term contracts with suppliersMaterials and parts delivered in small lots as neededMinimal inspection of delivered materials and partsElectronic ordering and payments14Copyright  2003 McGraw-Hill Australia Pty Ltd, PPTs t/a Management Accounting: An Australian Perspective 3/e by Langfield-Smith, Thorne & HiltonSlides prepared by Kim Langfield-SmithCosts of JITSubstantial investment to change the production to minimise non-value-added activitiesAn increase in the risk of inventory shortages and the associated loss of production, expediting materials costs and loss of sales15Copyright  2003 McGraw-Hill Australia Pty Ltd, PPTs t/a Management Accounting: An Australian Perspective 3/e by Langfield-Smith, Thorne & HiltonSlides prepared by Kim Langfield-SmithBenefits of JITSavings in inventory-carrying costsLower insurance costsFewer losses due to spoilage, obsolescence and theftNo opportunity costs of high inventoryElimination of non-value-added activitiesMeets customers’ needs more effectively16Copyright  2003 McGraw-Hill Australia Pty Ltd, PPTs t/a Management Accounting: An Australian Perspective 3/e by Langfield-Smith, Thorne & HiltonSlides prepared by Kim Langfield-SmithManaging customersCustomer relationship management (CRM)Collecting and analysing data to understand individual customers’ behaviour patterns and needsTo develop strong relationships with customersCan lead to improved customer service, customer retention, new customers, more effective and efficient marketing, increased sales and customer profitability17Copyright  2003 McGraw-Hill Australia Pty Ltd, PPTs t/a Management Accounting: An Australian Perspective 3/e by Langfield-Smith, Thorne & HiltonSlides prepared by Kim Langfield-SmithCustomer cost analysisActivity-based costing can be used to determine the profitability of customersCustomer cost analysis: assigning the costs of product and customer-driven activities to customersCustomer profitability analysis Relative profitability of customers can be determined and used for a range of strategic decisions18Copyright  2003 McGraw-Hill Australia Pty Ltd, PPTs t/a Management Accounting: An Australian Perspective 3/e by Langfield-Smith, Thorne & HiltonSlides prepared by Kim Langfield-SmithHow do customers differ?Customisation of productsMarketing and selling activitiesDistribution channelsCustomer support activities19Copyright  2003 McGraw-Hill Australia Pty Ltd, PPTs t/a Management Accounting: An Australian Perspective 3/e by Langfield-Smith, Thorne & HiltonSlides prepared by Kim Langfield-SmithWhat calculate customer profitability?To address the following questionsWhich customers generate the most profits? and how do we retain them?Which customers generate the lowest profits? and how can we make them more profitable?What types of customers should we focus on to maximise profitability?20Copyright  2003 McGraw-Hill Australia Pty Ltd, PPTs t/a Management Accounting: An Australian Perspective 3/e by Langfield-Smith, Thorne & HiltonSlides prepared by Kim Langfield-Smith21Copyright  2003 McGraw-Hill Australia Pty Ltd, PPTs t/a Management Accounting: An Australian Perspective 3/e by Langfield-Smith, Thorne & HiltonSlides prepared by Kim Langfield-SmithCustomer profitability analysisFour level of customer-driven activities and costsOrder level activitiesCustomer level activitiesMarket level activitiesFacility level activitiesCustomer performance measures22Copyright  2003 McGraw-Hill Australia Pty Ltd, PPTs t/a Management Accounting: An Australian Perspective 3/e by Langfield-Smith, Thorne & HiltonSlides prepared by Kim Langfield-Smith23Copyright  2003 McGraw-Hill Australia Pty Ltd, PPTs t/a Management Accounting: An Australian Perspective 3/e by Langfield-Smith, Thorne & HiltonSlides prepared by Kim Langfield-SmithManaging quality What is quality?Quality of designdegree to which a product’s design specifications meet customers’ expectationsQuality of conformancedegree to which a product meets formal design specifications24Copyright  2003 McGraw-Hill Australia Pty Ltd, PPTs t/a Management Accounting: An Australian Perspective 3/e by Langfield-Smith, Thorne & HiltonSlides prepared by Kim Langfield-SmithCost of quality reports Costs incurred in ensuring that the organisation maintains a high level of quality in its products, and the costs that arise from having poor-quality products Internal failure costsIncurred when defective products or services are detected before they leave the firm25Copyright  2003 McGraw-Hill Australia Pty Ltd, PPTs t/a Management Accounting: An Australian Perspective 3/e by Langfield-Smith, Thorne & HiltonSlides prepared by Kim Langfield-SmithCost of quality reportsExternal failure costsIncurred as a result of defective products or services being delivered to customersAppraisal costs Incurred to determine whether defects exist Prevention costsIncurred to prevent internal or external failures and to minimise appraisal activities26Copyright  2003 McGraw-Hill Australia Pty Ltd, PPTs t/a Management Accounting: An Australian Perspective 3/e by Langfield-Smith, Thorne & HiltonSlides prepared by Kim Langfield-SmithUsefulness of cost of quality reportsPlaces a dollar figure on the costs of poor qualityHelps prioritise quality improvement programsHelps managers monitor the effects of the ‘quality effort’Can help identify the optimal level of quality for the firm27Copyright  2003 McGraw-Hill Australia Pty Ltd, PPTs t/a Management Accounting: An Australian Perspective 3/e by Langfield-Smith, Thorne & HiltonSlides prepared by Kim Langfield-SmithTQM and a quality cultureTQM is a management approach that focuses on meeting customer requirements by achieving continuous improvement in products or servicesTQM is a broad philosophy with a number of features which are not included in JIT28Copyright  2003 McGraw-Hill Australia Pty Ltd, PPTs t/a Management Accounting: An Australian Perspective 3/e by Langfield-Smith, Thorne & HiltonSlides prepared by Kim Langfield-SmithFeatures of TQMTQM is holisticCustomer-drivenInvolves empowermentHas a process perspectiveIs supported by a quality management systemInvolves continuous improvement29Copyright  2003 McGraw-Hill Australia Pty Ltd, PPTs t/a Management Accounting: An Australian Perspective 3/e by Langfield-Smith, Thorne & HiltonSlides prepared by Kim Langfield-SmithQuality accreditationOrganisations may achieve quality accreditation by meeting a series of quality standards set out in the ISO 9000 series. ISO 9000’s areExpensive to implement and maintainMay have little relevance to many small businesses and service organisations30Copyright  2003 McGraw-Hill Australia Pty Ltd, PPTs t/a Management Accounting: An Australian Perspective 3/e by Langfield-Smith, Thorne & HiltonSlides prepared by Kim Langfield-Smith