Honor project - Management accounting can be seen...

Info iconThis preview shows pages 1–3. Sign up to view the full content.

View Full Document Right Arrow Icon
Management accounting can be seen everywhere in today’s business world. From a production manager who is doing the variance analysis to a Chief Executive Officer of a company discuss their budget with their executives, from setting up a new production line to giving up an old segment, people can see that management accounting is used along the development of a company. By interviewing Professor Brian W. Jacobs, who has been working as a manufacturing manager in the primary metals and automotive assembly industries for over 20 years, we gain a better understanding of how the management accounting is applied in the manufacturing industry. His rich experience in management has provided us a solid understanding of following aspects: lean production, bottleneck, total quality management (TQM), make or buy decision and variance analysis. Lean Production As the biggest waste is incurred by inventory, lowering inventory is an efficient approach to attack waste. Lean production, which aims to perform this role, was adopted by his company; apparently, reducing waste of production is its most tangible benefit which we were familiar with. Also, it is an effective way of showing respect for people, which has never occurred to us before. Based on his experience, as lean production is able to reduce waste of production substantially, it would raise the satisfaction of labors; eventually, the productivity of them will be increased enormously due to the high morale. Thus, lean production not only cuts down unnecessary expense but also increases the labor efficiency.
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Bottleneck Bottleneck usually refers the part in a company’s production line that prevents the company from achieving the expected production. In other words, it refers to the weakest part in the production line. We both perceived the bottleneck as a negative element of a
Background image of page 2
Image of page 3
This is the end of the preview. Sign up to access the rest of the document.

Page1 / 5

Honor project - Management accounting can be seen...

This preview shows document pages 1 - 3. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online