正确的时间管理全英.ppt
JITX03 Danaher Business System 1998/JIT Management Accounting*Danaher Business System 1998/JIT Management Accounting*,Page 1,Just In Time,Why 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!),JITX03 Danaher Business System 1998/JIT Management Accounting*Danaher Business System 1998/JIT Management Accounting*,Page 2,Just in Time Most Importantly,Why do accountants need to understand JIT?ACCOUNTANTS CAN DESTROY A JUST IN TIME PROGRAM!,JITX03 Danaher Business System 1998/JIT Management Accounting*Danaher Business System 1998/JIT Management Accounting*,Page 3,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 cells,JITX03 Danaher Business System 1998/JIT Management Accounting*Danaher Business System 1998/JIT Management Accounting*,Page 4,What is JIT?,JIT is a philosophy that:Exposes and eliminates wasteFocuses on doing value added activitiesJIT is made up of many tools,JITX03 Danaher Business System 1998/JIT Management Accounting*Danaher Business System 1998/JIT Management Accounting*,Page 5,JIT Cell Layout,To Customer,JITX03 Danaher Business System 1998/JIT Management Accounting*Danaher Business System 1998/JIT Management Accounting*,Page 6,Traditional Manufacturing Layout,RawMaterial Stores,Lathes,Test,Screw Machines,Grinding,Assembly,Milling,Packing,JITX03 Danaher Business System 1998/JIT Management Accounting*Danaher Business System 1998/JIT Management Accounting*,Page 7,The Tools of JIT,POKE YOKEWORK CELLSMAKE IT UGLYMUDASMEDKANBANJUST DO IT,STANDARD WORKONE PIECE FLOWVISUAL CONTROL5 WHYSTHE 5 SsTAKT TIMEKAIZEN,JITX03 Danaher Business System 1998/JIT Management Accounting*Danaher Business System 1998/JIT Management Accounting*,Page 8,Common Excuses Cause Failure,JIT is a great concept.But it wont work for us.Were different.,JITX03 Danaher Business System 1998/JIT Management Accounting*Danaher Business System 1998/JIT Management Accounting*,Page 9,Upper Management commitment is critical,JITX03 Danaher Business System 1998/JIT Management Accounting*Danaher Business System 1998/JIT Management Accounting*,Page 10,The Problems With Traditional ManagementAccounting Systems,JITX03 Danaher Business System 1998/JIT Management Accounting*Danaher Business System 1998/JIT Management Accounting*,Page 11,Traditional accounting systemswill not work in a Just-In-Time environment,JITX03 Danaher Business System 1998/JIT Management Accounting*Danaher Business System 1998/JIT Management Accounting*,Page 12,Traditional Accounting Systems,Were designed to service:,External,Customers,The IRSThe SECAuditors,Those guys at corporate!,JITX03 Danaher Business System 1998/JIT Management Accounting*Danaher Business System 1998/JIT Management Accounting*,Page 13,Traditional Accounting Systems,Failed 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.,JITX03 Danaher Business System 1998/JIT Management Accounting*Danaher Business System 1998/JIT Management Accounting*,Page 14,Traditional Accounting Systems,As painful as these controls were,the accounting profession attempted to use the output from these systems to measure the performance of the manufacturing group.,JITX03 Danaher Business System 1998/JIT Management Accounting*Danaher Business System 1998/JIT Management Accounting*,Page 15,Standard Costs,Standard Costs are estimates of what you think a product will cost to manufacture.Standards are wrong from the moment which they are developed!,JITX03 Danaher Business System 1998/JIT Management Accounting*Danaher Business System 1998/JIT Management Accounting*,Page 16,The Problems With Using Standard Cost Variance Analysis,1.Variance Analysis often measures the wrong things.Dysfunctional behaviors are encouraged.2.Variance analysis does not support or promote the kaizen(continuous improvement)philosophy.,JITX03 Danaher Business System 1998/JIT Management Accounting*Danaher Business System 1998/JIT Management Accounting*,Page 17,Purchase Price Variance Analysis,Material 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 increase,JITX03 Danaher Business System 1998/JIT Management Accounting*Danaher Business System 1998/JIT Management Accounting*,Page 18,Absorption AccountingVariance Analysis,Supports 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.,JITX03 Danaher Business System 1998/JIT Management Accounting*Danaher Business System 1998/JIT Management Accounting*,Page 19,Flexible BudgetingVariance Analysis,Flex 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.,JITX03 Danaher Business System 1998/JIT Management Accounting*Danaher Business System 1998/JIT Management Accounting*,Page 20,Variance Analysis does not Support Kaizen Philosophy,The above data reveals an unfavorable trend,although variances are favorable for the first three months.,JITX03 Danaher Business System 1998/JIT Management Accounting*Danaher Business System 1998/JIT Management Accounting*,Page 21,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,JITX03 Danaher Business System 1998/JIT Management Accounting*Danaher Business System 1998/JIT Management Accounting*,Page 22,Traditional Labor Accounting,Traditional 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 environment,JITX03 Danaher Business System 1998/JIT Management Accounting*Danaher Business System 1998/JIT Management Accounting*,Page 23,Traditional Scrap Reporting,Scrap 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.,JITX03 Danaher Business System 1998/JIT Management Accounting*Danaher Business System 1998/JIT Management Accounting*,Page 24,Traditional Capital Justification,Traditional 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.,JITX03 Danaher Business System 1998/JIT Management Accounting*Danaher Business System 1998/JIT Management Accounting*,Page 25,HOW JIT IMPACTS THEMANAGEMENT ACCOUNTING SYSTEM,JITX03 Danaher Business System 1998/JIT Management Accounting*Danaher Business System 1998/JIT Management Accounting*,Page 26,Impact of Just In Time on Overhead Costing Structure,Organization refocuses its attention to the shop floorFunctional/centralized groups are redeployed directly to JIT cells/TeamsExamples include:PurchasingProduction controlManufacturing engineeringIndustrial engineeringQuality controlTool designCost Accounting,JITX03 Danaher Business System 1998/JIT Management Accounting*Danaher Business System 1998/JIT Management Accounting*,Page 27,JIT refocuses attention to the factory floor,Shop floor,President,JITX03 Danaher Business System 1998/JIT Management Accounting*Danaher Business System 1998/JIT Management Accounting*,Page 28,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 immediate,JITX03 Danaher Business System 1998/JIT Management Accounting*Danaher Business System 1998/JIT Management Accounting*,Page 29,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 products,JITX03 Danaher Business System 1998/JIT Management Accounting*Danaher Business System 1998/JIT Management Accounting*,Page 30,Product Costingin a JIT Environment,For 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”budgets,JITX03 Danaher Business System 1998/JIT Management Accounting*Danaher Business System 1998/JIT Management Accounting*,Page 31,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.,JITX03 Danaher Business System 1998/JIT Management Accounting*Danaher Business System 1998/JIT Management Accounting*,Page 32,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 management,JITX03 Danaher Business System 1998/JIT Management Accounting*Danaher Business System 1998/JIT Management Accounting*,Page 33,Overhead cost analysistraditional vs.JIT,Traditional JIT EnvironmentTotal Overhead costs,Support costs70%,Cell costs30%,Support costs40%,Cell costs60%,JITX03 Danaher Business System 1998/JIT Management Accounting*Danaher Business System 1998/JIT Management Accounting*,Page 34,Product costing exampleHomogeneous units,Support costs are allocated to each cell Although allocations are required,costs are easier to assign because of cell layout.,JITX03 Danaher Business System 1998/JIT Management Accounting*Danaher Business System 1998/JIT Management Accounting*,Page 35,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 parts,JITX03 Danaher Business System 1998/JIT Management Accounting*Danaher Business System 1998/JIT Management Accounting*,Page 36,Product costing exampleCycle Time,JITX03 Danaher Business System 1998/JIT Management Accounting*Danaher Business System 1998/JIT Management Accounting*,Page 37,Non-Financial measures in a JIT environment,Units produced per man hourWorld class-2%improvement/monthCustomer service trendsPercent past due/fill rateDays inventory on handQuality rejects Pareto analysisEmployee suggestionsDaily production statusPurchasing measurementsSupplier performanceScrap units/dollars Kaizen results,JITX03 Danaher Business System 1998/JIT Management Accounting*Danaher Business System 1998/JIT Management Accounting*,Page 38,Things to keep in mind,Changes 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,JITX03 Danaher Business System 1998/JIT Management Accounting*Danaher Business System 1998/JIT Management Accounting*,Page 39,Transition period JIT conversion,Traditional Systems,Just In Time Systems,Finish,Start,Transition time period,System configuration,JITX03 Danaher Business System 1998/JIT Management Accounting*Danaher Business System 1998/JIT Management Accounting*,Page 40,Accounting must ask the following questions,Who 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?,JITX03 Danaher Business System 1998/JIT Management Accounting*Danaher Business System 1998/JIT Management Accounting*,Page 41,Acountants must ask the following questions,Are 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?,JITX03 Danaher Business System 1998/JIT Management Accounting*Danaher Business System 1998/JIT Management Accounting*,Page 42,RISKS,There are financial implications to a JIT implementation:As inventory is reduced,unfavorable absorption variances will impact the bottom lineAdditional JIT implementation costs will also impact financial performance:JIT trainingPlant clean-upPlant rearrangementWrite-off of“discovered”obsolete inventoryTHE ACCOUNTANT EARNS HIS PAY,
