Topics: Quality management, Management, Manufacturing Pages: 5 (2969 words) Published: November 4, 2014
Introduction This assignment consisted of two parts. The first part is mainly about the modern developments in management accounting, what is World Class Manufacturing will be explained at first. Then, five features that could help company become and remain world class will be given and demonstrate in detail. Another part is about the two calculation methods that using by companies when measure expenses and overheads. This will be show through the calculation process in detail for a Peppa Ltd by using the traditional costing methods and activity-based costing methods. A briefly explains will also be given on which set of calculations is most accurate. Part A World Class Manufacturing Today companies are trying hard to apply various Production Systems in order to achieve their aims. As a result, the management of each company must be persistent in order to reach the high targets. In order to compete internationally companies must be able to produce innovative products of high quality at low cost. World Class Manufacturing (W.C.M) could be called as one of the most known production systems in this world and this term was created by Richard Schonberger, a leading manufacturing consultant. Although there is no exact definition of this system, professor Hajme (2000) once summarised that W.C.M as a different set of concepts, principles, policies and techniques for managing and operating a manufacturing company. It is driven by the results achieved by the Japanese manufacturing resurgence following World War II, and adapts many of the ideas used by the Japanese in automotive, electronics and steel companies to gain a competitive edge. It primarily focuses on continual improvement in quality, cost, lead time, flexibility and customer service. The company which wants to doing well on the World Class Manufacturing system would be expected to equipment with the features of five aspects as follows Commitment to Quality (T.Q.M) A flexible and highly motivated workforce. Just-In-Time (J.I.T) system. Material Requirements Planning (M.R.P.I) Aim to satisfy customers at a global level. Commitment to Quality (T.Q.M) (1) Definition and functions It is increasingly the case that a firm which cannot meet the external customers quality requirements will go out of business, so that the needs to conformity with quality products so become a prerequisite for staying in business. International Standardisation Organisation identifies Total Quality Management as That aspect of the overall management function that determines and implements the quality policy and, as such, is the responsibility of top management. That is to say the nature of the TQM is an approach for companies to get long-term success through customer satisfaction. Successful companies understand the powerful impact customer-defined quality can have on business. They know that once the customers do not satisfied with quality of the product they will go elsewhere and chose the product which owns better quality in other companies. As a result, the company will lose their market share more seriously, the reputation may be ruined by not manufacture to an approved quality standard. For this reason many competitive firms continually increase their quality standards. For example, both the Ford Motor Company and the Honda Motor Company have announced that they are making customer satisfaction their number one priority. The slow economy of 2003 impacted sales in the auto industry. Both firms believe that the way to rebound is through improvements in quality, and each has outlined specific changes to their operations (Juran,2008 ). In addition, as the mission of total quality management programmes is trying hard to completely eliminate these internal failure costs by working towards a goal of zero defect. This make TQM become very important as it can lead to less waste of material and time. The more material and time could be saved, the more profit that the companies are able to create....
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