1
Q
What is total quality management?
A
is the continuous improvement in quality, productivity and effectiveness through a management approach focusing on both the process
2
Q
Fundamental features of the TQM
A
- prevention of errors before they occur
- importance of total quality in the design of systems and products
- real participation of all employees
- commitment of senior management to the cause
- recognition of the vital role of customers and suppliers
- recognition of the need for continual improvement
3
Q
Key characteristics for Just-In-Time
A
- high quality
- speed
- reliability
- flexibility
- low costs
4
Q
What is the aim of throughput accounting?
A
to make the best use of a scarce resource (bottleneck) in a JIT environment
5
Q
What means TPAR > 1?
A
throughput exceeds operating costs so the product should make a profit
6
Q
What means TPAR < 1?
A
- suggest that throughput in insuffient to cover operating costs, resulting in a loss
7
Q
How to improve the TPAR?
A
- increase the sales price for each unit sold
- reduce material costs per unit to increase the throughput per unit
- reduce total operating expenses, to reduce the cost per factory hour
- improve the productivity of the bottleneck
8
Q
What are the types of the value?
A
- cost value: cost incurred by the firm incurring the product
- exchange value: the amount of money that consumers are willing to exchange to obtain ownership of the product
- use value: related entirely to function
- esteem value: relates to the status or regard associated with ownership
9
Q
What is Environmental management accounting?
A
- is concerned with the accounting information needs of managers in relation to corporate activities that affect the environment as well as environment-related impacts on the corporation
10
Q
Internal costs of Environmental costs?
A
- improved systems and checks
- waste disposal costs
- product take back costs
- regulatory costs such as taxes
- upfront costs such as obtaining permits
- back-end cots such as decommissioning costs
11
Q
External costs of Environment costs?
A
- carbon emissions
- usage of energy and water
- forest degradation
- health care costs
- social welfare costs
12
Q
Limitations of the Learning Curve model?
A
- process is labour intensive
- the product is new
- the product is complex
- production is repetitive and there are no breaks in process
