Test Builder topics to work on Flashcards
What are some value analysis terms?
Use Value
Esteem Value
Cost Value
What analysis analyses production costs to identify the costs involved in preventing quality failures?
Conformance cost analysis
What analysis analyses production costs to identify the costs of quality failures?
Non-conformance cost analysis
What analysis analyses the market for a product to determine the different purchaser groups and the costs each group cause the company to incur?
Target costing
What analysis analyses the current market for a product to determine the different purchaser groups and the costs each group cause the company to incur?
Customer profitability analysis
What analysis reviews the inventory holding practices in the manufacturing units which make all products with a view to reducing or eliminating all related inventory costs?
Just in time analysis
What analysis reviews the functions of one of the products in the product range to determine how they could be provided at a lower cost?
Value analysis
What analysis involves designing a new product to replace an existing product in the range so that the customer will be happy to pay a higher price whilst the company’s costs rise by a lower margin?
Value engineering
What are some aspects of a successful Just in time system?
Demand driven production
Grouping machines or workers by product or component
When would we look at non-financial indicators?
To look at fuller picture of business
Where is DPP most commonly found?
Grocery Trade
How do you calculate ROI?
Divisional controllable profit before interest and tax/divisional capital employed
How do you calculate RI?
Controllable profit - notional interest on capital
How do you calculate the ARR?
Average annual profit/average value of investment
How do you calculate the average value of investment?
Initial investment plus residual value/2
