Statistical process control: what management accountants need to know
Article Abstract:
Statistical process control (SPC) is a strategy for enhancing quality and managing costs that is based on the assumption that process performance is dynamic. Because performance cannot be assessed using a single measuring tool, SPC uses graphic aids or control charts to comprehend and decrease process fluctuations until they stabilize. Identifying and removing the factors that cause unusual fluctuations can lead to the improvement of the overall process performance. Implementing SPC requires the following steps: selecting the appropriate process, performance measure and control chart to use; constructing the control chart; and interpreting the chart, which requires knowledge of the underlying statistical theory and the various rules governing SPC. Decisions regarding process performance can then be based on the completed control chart.
Publication Name: Management Accounting (USA)
Subject: Business, general
ISSN: 0025-1690
Year: 1992
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Process redesign: is it worth it?
Article Abstract:
Organizations planning to implement a business process redesign initiative can ensure its success by following a three-step approach involving process mapping, value analysis and the half-life concept. Process mapping, also called flowcharting, allows management to get a good perspective of the specific activities that take place within an existing system and quickly discover any problems in a broken process. The team uses the information derived from process mapping to conduct value analysis, a process that entails determining the percentage of value being provided by a given process to customers. The half-life principle comes into the picture during the last stage in business process redesign which requires measuring the number of steps to be developed out of a process and the period needed to accomplish it.
Publication Name: Management Accounting (USA)
Subject: Business, general
ISSN: 0025-1690
Year: 1999
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Leverage your vendor relationships and enhance your bottom line
Article Abstract:
Companies should develop and integrate a vendor management and leverage program to realize significant cost savings. Firms are urged to acquire vendor information or third party databases to eliminate redundancy in vendor recordkeeping activities. They are also recommended to enhance vendor information through categorization and the inclusion of basic information such as telephone numbers, organization type, and products and services offered. Moreover, companies should establish standards and quality measures designed to analyze performance issues and expenditures according to vendor and vendor type. Firms can also outsource external resources to ensure the success of a management program that will ultimately lead to more efficient and productive business relationships.
Publication Name: Management Accounting (USA)
Subject: Business, general
ISSN: 0025-1690
Year: 1998
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