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MALP

MALP. Strategic Implications of Mgt. Acctg. Systems Quality choices can be affected Cost is fundamental Provides information on timeliness of production. Determinants. Strategic Choices. Cost Structure. Environment. -Structural Elements -Work Processes. Management Accounting System.

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MALP

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  1. MALP • Strategic Implications of Mgt. Acctg. Systems • Quality choices can be affected • Cost is fundamental • Provides information on timeliness of production

  2. Determinants Strategic Choices Cost Structure Environment -Structural Elements -Work Processes Management Accounting System Production Methods

  3. Types of Production Methods • Craft • Mass Production • Lean Production (Flexible Mfg. System)

  4. Structure Differences • Mass • Inflexible single purpose • High set-up time • Low labor skill level • Lean • Multi-use equipment • Low set-up time • Skilled labor force

  5. Work Process Differences • Mass • Supervisory control • Precise control over supplier • Standardized products • Independent, sequential prod. develop. • Lean • Empowered workers • Cooperative relationship w/suppliers • Customer focused organization • Concurrent, integrated design

  6. Cost Structure • Mass • Driven by volume • Allocation of fixed costs • Lean • Driven by process or activity

  7. Mgt. Acctg. System in Lean Production • Driver focused • Value chain focused • Limited need for inventory reporting • Indirect cost orientation

  8. Lean Prod--Attributes • Technical • Better decision relevance • Driver focused • External orientation • Cross functional & value chain focus • Better process understanding

  9. MALP--Attributes, cont. • Behavioral • Team responsibility • Multiple motivation • Accountant as team player • Quality commitment • Global optimization • Risk of burnout

  10. MALP--Attributes, cont. • Cultural • Team responsibility • Cooperation vs. competition • Focus on overall common good • Change in locus of power

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