正确的时间管理全英.ppt
Just In TimeWhy do accountants need to understand JIT?JIT is a cultural changeJIT changes the entire organizationWithout understanding JIT,the accountant will never understand why accounting systems must changeAccountants resist“throwing away”traditional accounting beliefs-they are therefore viewed as impediments to progress in a JIT worldEducation is criticalJIT educationShop floor education(move your desk if necessary!)1JITX03 Danaher Business System 1998/JIT Management Accounting*Danaher Business System 1998/JIT Management Accounting*Just in Time Most ImportantlyWhy do accountants need to understand JIT?ACCOUNTANTS CAN DESTROY A JUST IN TIME PROGRAM!2JITX03 Danaher Business System 1998/JIT Management Accounting*Danaher Business System 1998/JIT Management Accounting*What is JIT?First,lets describe what JIT is not:Not an inventory reduction programNot a key supplier programNot the re-configuration of a shop into cells3JITX03 Danaher Business System 1998/JIT Management Accounting*Danaher Business System 1998/JIT Management Accounting*What is JIT?JIT is a philosophy that:Exposes and eliminates wasteFocuses on doing value added activitiesJIT is made up of many tools4JITX03 Danaher Business System 1998/JIT Management Accounting*Danaher Business System 1998/JIT Management Accounting*JIT Cell LayoutFinishedABCRAW12345765JITX03 Danaher Business System 1998/JIT Management Accounting*Danaher Business System 1998/JIT Management Accounting*Traditional Manufacturing LayoutRawMaterial StoresLathesTestScrew MachinesGrindingAssemblyMillingPackingFinishedGoods6JITX03 Danaher Business System 1998/JIT Management Accounting*Danaher Business System 1998/JIT Management Accounting*The Tools of JITPOKE YOKEWORK CELLSMAKE IT UGLYMUDASMEDKANBANJUST DO ITSTANDARD WORKONE PIECE FLOWVISUAL CONTROL5 WHYSTHE 5 SsTAKT TIMEKAIZEN7JITX03 Danaher Business System 1998/JIT Management Accounting*Danaher Business System 1998/JIT Management Accounting*Common Excuses Cause FailureJIT is a great concept.But it wont work for us.Were different.8JITX03 Danaher Business System 1998/JIT Management Accounting*Danaher Business System 1998/JIT Management Accounting*Upper Management commitment is critical9JITX03 Danaher Business System 1998/JIT Management Accounting*Danaher Business System 1998/JIT Management Accounting*The Problems With Traditional ManagementAccounting Systems10JITX03 Danaher Business System 1998/JIT Management Accounting*Danaher Business System 1998/JIT Management Accounting*Traditional accounting systemswill not work in a Just-In-Time environment11JITX03 Danaher Business System 1998/JIT Management Accounting*Danaher Business System 1998/JIT Management Accounting*Traditional Accounting SystemsWere designed to service:ExternalCustomersThe IRSThe SECAuditorsThose guys at corporate!12JITX03 Danaher Business System 1998/JIT Management Accounting*Danaher Business System 1998/JIT Management Accounting*Traditional Accounting SystemsFailed to recognize that their most important customer is manufacturing!Forced their systems on othersAccountants thought they had controlRequired manufacturing to do non-value added things:Controlled stockroomInventory TransactionsDiscrete Shop ordersLabor Time Tickets etc.13JITX03 Danaher Business System 1998/JIT Management Accounting*Danaher Business System 1998/JIT Management Accounting*Traditional Accounting SystemsAs painful as these controls were,the accounting profession attempted to use the output from these systems to measure the performance of the manufacturing group.14JITX03 Danaher Business System 1998/JIT Management Accounting*Danaher Business System 1998/JIT Management Accounting*Standard CostsStandard Costs are estimates of what you think a product will cost to manufacture.Standards are wrong from the moment which they are developed!15JITX03 Danaher Business System 1998/JIT Management Accounting*Danaher Business System 1998/JIT Management Accounting*The Problems With Using Standard Cost Variance Analysis1.Variance Analysis often measures the wrong things.Dysfunctional behaviors are encouraged.2.Variance analysis does not support or promote the kaizen(continuous improvement)philosophy.16JITX03 Danaher Business System 1998/JIT Management Accounting*Danaher Business System 1998/JIT Management Accounting*Purchase Price Variance AnalysisMaterial price standards are weighted,therefore,variance analysis is not meaningful.PPV analysis promotes the use of volume discounts to keep unit price down-Inventory levels rise-Obsolescence increasesPromotes the use of the lowest cost supplier.-Quality is compromised-Rejects,rework,warranty increase17JITX03 Danaher Business System 1998/JIT Management Accounting*Danaher Business System 1998/JIT Management Accounting*Absorption AccountingVariance AnalysisSupports the notion of producing as much as possible.High-Absorption products are produced regardless of demand requirements.Emphasis on absorption variances results in:-high inventory levels-decreased customer service levels-increased obsolenceThe definition of fixed costs is an area of concern:-many costs are not truly fixed-fixed suggests that improvements are not possible.18JITX03 Danaher Business System 1998/JIT Management Accounting*Danaher Business System 1998/JIT Management Accounting*Flexible BudgetingVariance AnalysisFlex budgets are derived from standard costing calculations-Standard costs are not accurate-activity base usually is not representativeMany costs are not truly variable in nature.The use of flex budgets may lead to a false sense of security.19JITX03 Danaher Business System 1998/JIT Management Accounting*Danaher Business System 1998/JIT Management Accounting*Variance Analysis does not Support Kaizen PhilosophyThe above data reveals an unfavorable trend,although variances are favorable for the first three months.20JITX03 Danaher Business System 1998/JIT Management Accounting*Danaher Business System 1998/JIT Management Accounting*When are Standards useful?Standards should never be used for performance measurementStandards are useful for:-expediting the accounting process-approximation of the fair value of inventory-regulatory compliance 21JITX03 Danaher Business System 1998/JIT Management Accounting*Danaher Business System 1998/JIT Management Accounting*Traditional Labor AccountingTraditional definition of direct/indirect labor does not apply in a JIT environment.-Multi-Skilled operators-Operators perform 5 Ss,TPM,Set-upTraditional focus on direct labor ignores other manufacturing costs.-Labor as a%of total cost is usually below 20%Labor problems will be detected visually in a JIT environment22JITX03 Danaher Business System 1998/JIT Management Accounting*Danaher Business System 1998/JIT Management Accounting*Traditional Scrap ReportingScrap tickets are required to be costed at stage of completion in a traditional environment-requires excess clerical help-requires detailed routings to be maintainedOne-piece flow in a JIT Environment-Volume of scrap is reduced(batch of one)-Eliminates the need for detailed costing-Scrap costed out at raw material stage or finished level of completion.23JITX03 Danaher Business System 1998/JIT Management Accounting*Danaher Business System 1998/JIT Management Accounting*Traditional Capital JustificationTraditional Capital budgeting methods:-capital project should achieve a targeted paybackBy viewing capital projects as investments we ignore other critical factors:-impact on customer service-mixed model productionFocusing on payback encourages over-purchasing of machine capacity&speed.24JITX03 Danaher Business System 1998/JIT Management Accounting*Danaher Business System 1998/JIT Management Accounting*HOW JIT IMPACTS THEMANAGEMENT ACCOUNTING SYSTEM 25JITX03 Danaher Business System 1998/JIT Management Accounting*Danaher Business System 1998/JIT Management Accounting*Impact of Just In Time on Overhead Costing StructureOrganization refocuses its attention to the shop floorFunctional/centralized groups are redeployed directly to JIT cells/TeamsExamples include:PurchasingProduction controlManufacturing engineeringIndustrial engineeringQuality controlTool designCost Accounting26JITX03 Danaher Business System 1998/JIT Management Accounting*Danaher Business System 1998/JIT Management Accounting*JIT refocuses attention to the factory floorShop floorPresident27JITX03 Danaher Business System 1998/JIT Management Accounting*Danaher Business System 1998/JIT Management Accounting*Impact of Just In Time on Overhead Costing Structure(Cont)JIT Teams take on the form of a Factory within a factoryRedeployment provides:Greater focus on issues/opportunitiesOpportunity to control ones destinyEnhanced level of control over a wider span of operationsGreater sense of ownershipProblem detection and resolution is immediate28JITX03 Danaher Business System 1998/JIT Management Accounting*Danaher Business System 1998/JIT Management Accounting*Impact of Just In Time on Overhead Costing Structure(Cont)Accounting Implications:Overhead costs are now associated with a JIT cellArbitrary allocations of overhead costs is no longer requiredMore accurate costs:Overhead costs can be better traced to particular products29JITX03 Danaher Business System 1998/JIT Management Accounting*Danaher Business System 1998/JIT Management Accounting*Product Costingin a JIT EnvironmentFor cost collection purposes:Each JIT cell is set up as a cost department in the accounting system.As more cells are added,so are cost departments.Each JIT cell prepares Bottom-Up”budgets30JITX03 Danaher Business System 1998/JIT Management Accounting*Danaher Business System 1998/JIT Management Accounting*Product Costing in a JIT Environment(Cont)For product costing purposes,overhead is classified into two cost pools:Cell costs:Those costs that can be reasonably traced directly to a cell.Included in this pool are:Cell Management salariesLabor costsToolingMachine DepreciationSuppliesNote that both fixed and variable costs are included.31JITX03 Danaher Business System 1998/JIT Management Accounting*Danaher Business System 1998/JIT Management Accounting*Product Costing in a JIT Environment(Cont)Support costs:Those costs that are not directly traceable to a JIT cell.These costs need to be allocated to particular cells.Examples include:Centralized support costsHeat treatingGeneral MaintenancePlant depreciationTaxes/InsuranceCentralized manufacturing management32JITX03 Danaher Business System 1998/JIT Management Accounting*Danaher Business System 1998/JIT Management Accounting*Overhead cost analysistraditional vs.JITTraditional JIT EnvironmentTotal Overhead costsSupport costs70%Cell costs30%Support costs40%Cell costs60%33JITX03 Danaher Business System 1998/JIT Management Accounting*Danaher Business System 1998/JIT Management Accounting*Product costing exampleHomogeneous units Support costs are allocated to each cell Although allocations are required,costs are easier to assign because of cell layout.34JITX03 Danaher Business System 1998/JIT Management Accounting*Danaher Business System 1998/JIT Management Accounting*Product costing exampleequivalent units Parts produced in a cell may not be homogeneous in terms of resources required Parts should be grouped into catagories Assign equivalent unit factors to these parts35JITX03 Danaher Business System 1998/JIT Management Accounting*Danaher Business System 1998/JIT Management Accounting*Product costing exampleCycle Time36JITX03 Danaher Business System 1998/JIT Management Accounting*Danaher Business System 1998/JIT Management Accounting*Non-Financial measures in a JIT environmentUnits produced per man hour-World class-2%improvement/monthCustomer service trends-Percent past due/fill rateDays inventory on handQuality rejects-Pareto analysisEmployee suggestionsDaily production statusPurchasing measurements-Supplier performanceScrap units/dollars Kaizen results 37JITX03 Danaher Business System 1998/JIT Management Accounting*Danaher Business System 1998/JIT Management Accounting*Things to keep in mindChanges to the MAS do not happen overnight!As the organization changes,the MAS should reflect and compliment the new organizational structure.As JIT is implemented,changes to the MAS will evolve in a common sense mannerChanges to the MAS should follow,not lead JIT 38JITX03 Danaher Business System 1998/JIT Management Accounting*Danaher Business System 1998/JIT Management Accounting*Transition period JIT conversionTraditional SystemsJust In Time SystemsFinishStartTransition time periodSystem configuration39JITX03 Danaher Business System 1998/JIT Management Accounting*Danaher Business System 1998/JIT Management Accounting*Accounting must ask the following questionsWho uses the information provided?Why is this data required?What would happen if this information is no longer provided?Is the data being imposed,or is someone asking for it?Are decisions being made from the information?Does the info support company goals?Are we collecting information that tells us something we already know?40JITX03 Danaher Business System 1998/JIT Management Accounting*Danaher Business System 1998/JIT Management Accounting*Acountants must ask the following questionsAre there other measures that will better aid the manufacturing group to monitor performance?(Including non-financial measures)Do the measures reflect continuous improvement trends?Is the information timely?41JITX03 Danaher Business System 1998/JIT Management Accounting*Danaher Business System 1998/JIT Management Accounting*RISKSThere are financial implications to a JIT implementation:-As inventory is reduced,unfavorable absorption variances will impact the bottom line-Additional JIT implementation costs will also impact financial performance:-JIT training-Plant clean-up-Plant rearrangement-Write-off of“discovered”obsolete inventoryTHE ACCOUNTANT EARNS HIS PAY42JITX03 Danaher Business System 1998/JIT Management Accounting*Danaher Business System 1998/JIT Management Accounting*
