Reengineering in the real world

Article Abstract:

Cummins Engine Co. embarked on a project to reengineer its accounts payable process as part of a bigger plan to apply a shared services concept for transaction processing. The company's current legacy accounts payable (AP) process had already reached a maturation point such that improvement efforts no longer worked. A team was created for the AP reengineering project and consultants were called in to guide the change process. The business process reengineering approach selected involved baselining, vision, design and implementation. The experience taught Cummins several system-related lessons, including the importance of setting deadlines as targets, preparing to pay large sums for good client/server developers and analysts, knowing the AP data well, and conducting testing. People-wise, the project underscored the importance of addressing the job security issue, training, and effective communications.

Diesel Engines ex Automotive, Automotive Diesel Engines, Management, Case studies, Diesel engines, Reengineering (Management), Motor industry, Accounts payable

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Cummins Engine changes its depreciation

Article Abstract:

Cummins Engine Co. has adopted the modified units-of-production method of depreciation for the cost of manufacturing equipment in of its two facilities. The modified units-of-production depreciation technique combines the elements of straight-line and units-of-production, which generates a dependable and consistent cost allocation. This method is grounded on the assumption that the depreciation of a productive asset is a function of time as well as usage. The use of production-oriented methods of depreciation in lieu of the conventional straight-line method enabled Cummins Engine to arrive at a precise matching of costs and revenues related to new-engine production. It would also allow the company to produce financial statements that are more representative of depreciation.

Internal Combustion Engines, Internal combustion engine industry

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How colleges can profit through depreciation: adoption of FASB standard will revolutionize budgeting decisions at universities

Article Abstract:

The practice of accounting for depreciation can be a beneficial activity for higher education institutes. The skyrocketing expenses of colleges, driven by increased salaries and benefits for a growing faculty and staff that serve a dwindling studentry, necessitate depreciation accounting. Moreover, this practice is also recommendable, given the decaying physical facilities of colleges that lack annual source of renovation funds. Through the disclosure of depreciation as an operating cost, colleges can arrest the progressive rise of other cash operating expenses and ultimately allocate enough resources for capital renovations and improvements. Guidelines on how to implement depreciation accounting are discussed.

Colleges & Universities, Colleges, Universities, and Professional Schools, Colleges and universities, Universities and colleges

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