DEVELOPING A COMPETITIVE STRATEGY AND CONTEMPORARY COST MANAGEMENT TECHNIQUES Flashcards
(52 cards)
Level of sales in critical product group,
sales trend, percent of sales from new
products, sales forecast accuracy
SALES
Earnings from operations, earnings
trend, dividend growth
PROFITABILITY
Cash flow, trend in cash flow, interest
coverage, asset turnover, inventory
turnover, receivable turnover, credit ratings
LIQUIDITY
Share price
MARKET VALUE
Customer returns and complaints,
customer survey
CUSTOMER SATISFACTION
Coverage and strength of dealer and
distributor channel relationships; e.g. number
of dealers per state or region
DEALER AND DISTRIBUTOR
Trends in sales performance, training,
market research activities; measured in
hours or peso
MARKETING AND SELLING
On-time delivery performance, time
from order to customer receipt
TIMELINESS OF DELIVERY
Customer complaints, warranty expense
QUALITY
Number of defects, number of returns,
customer survey, amount of scrap, amount of
rework, field service reports, warranty claims,
vendor quality defects
QUALITY
Cycle time (from raw materials to finished
product); labor efficiency’ machine efficiency;
amount of waste, rework and scrap
PRODUCTIVITY
Setup time, cycle time
FLEXIBILITY
Downtime, operator experience, machine
capacity, maintenance activities
EQUIPMENT READINESS
Number of activities, effects and activities
SAFETY
Number of design changes number of new
patents or copyrights, skills of research and
development staff
PRODUCT INNOVATION
Number of days over or under the announced ship date
TIMELINESS OF NEW
PRODUCT
Number of training hours, amount of skill
performance improvement
SKILL DEVELOPMENT
Employee turnover, number of complaints,
employee survey
EMPLOYEE MORALE
Rate of turnover, training experience, adaptability, financial and operating performance measures
COMPETENCE
is a technique in which management develops policies and practices to ensure that the firm’s products and services exceed customer’s expectations
Total Quality Management
The two major characteristics of TQM are:
- a focus on serving customers, and
- systematic problem-solving using teams made up of front-line workers
is the philosophy that activities are undertaken only as needed or demanded
Just-In-Time (JIT)
tends to focus broadly on the control of TOTAL
MANUFACTURING COSTS instead of individual costs such as direct manufacturing labor
Just-In-Time (JIT)
is a process for creating competitive
advantage in which a firm reorganizes its operating and management functions, often with the result that jobs are modified, combined, or eliminated.
REENGINEERING
