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Week 8 Quality%2 - Role of management accountants Week 8 Assist with strategy Develop implement provide on-going support of process improvement

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L1 ACCT2522 Week 8 1 Managing Quality Nicole Ang Quad 3097 Lecture Outline 1. Where are we now? 2. What is quality? 3. How do we manage it? (TQM) 4. How do we measure and monitor it? 4.1 COQ 4.2 DMOQ 4.3 Variability Readings: BDMM Chapter 4 + Appendix - on Blackboard LS Chapter 16 pp. 813-820 1. Where are we now? Remember the aim of management accounting is to support management strategies to create and sustain value Key theme: reduction of waste – Elimination/reduction of NVA – Improvement of efficiency and effectiveness – Optimal usage of human capital Role of management accountants Assist with strategy! – Develop, implement, & provide on-going support of process improvement – Support cost reduction & activity management – Prioritising areas for improvement – Select optimal methods of performance evaluation & control Customer value parameters Cost – Reduction of NVA & VA costs Time – Duration, timeliness, cycle time Quality? 2. What is quality? Our definition: – Customer satisfaction associated with the experience associated with a product or service • Internal or external LO 1 & 2 ISO 9001 Definition: – Total features and characteristics of a product or service that enable it to satisfy stated or implied needs
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L2 Dimensions of quality Performance Features Reliability Conformance Durability Serviceability Aesthetics Perceived quality Fitness for use Two stage approach to quality management Customer Expectation Quality o Final Product Design Specifications f Design Quality of Conformance Hyperion Electric Kettle Design Parameters Customer requirements ranking Wiring & insulation Heat conductivity Thermostat sensitivity Exterior Display interface Benchmark ranking (1-5) (1) Safety * * 2 ** 4 9 (2) Time to boil (3) Appearance * * 5 (4) Clock/timer * * 2 Changing views of cost and quality Traditional view Improving quality drives up time and cost Defects<10% acceptable World class view Improving quality reduces time and cost Aim to have no defects Defects<10% acceptable Quality may be inspected and reworked in Quantity is as important as quality Quality should be designed & built in Without quality, quantity is irrelevant Contributors to this change Juran Deming Crosby LO2 cont. 3. Total Quality Management (TQM) TQM is a corporate management philosophy that emphasises: Continuous improvement of processes dtk t i d d t d i undertaken to provide products and services – The importance of anticipating, meeting and exceeding customer needs and experiences • Everyone services a customer
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L3 TQM cont.
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This note was uploaded on 09/14/2011 for the course ACCT 1001 taught by Professor John during the Spring '11 term at Renmin University of China.

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Week 8 Quality%2 - Role of management accountants Week 8 Assist with strategy Develop implement provide on-going support of process improvement

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