Cost managment∶accounting and control 第十六章解答手册.doc

CHAPTER 16lean accounting, target costing, and the balanced scorecard questions for writing and discussion 1. Lean manufacturing is an approach designed to eliminate waste and maximize customer value. It is characterized by delivering the right product, in the right quantity, with the right quality (zero-defect) at the exact time the customer needs it and at the lowest possible cost. 2. The five principles of lean thinking are: (1) Precisely specify value by each particular product; (2) Identify the value stream for each product; (3) Make value flow without interruption; (4) Let the customer pull value from the producer; and (5) Pursue perfection. 3. Two types of value streams are the order fulfillment value stream and the new product value stream. The order fulfillment value stream focuses on providing current products to current customers. The new product value stream focuses on developing new products for new customers. 4. A value stream may be created for every product; however, it is more common to group products that use common processes into the same value stream. One way to identify the value streams is to use a simple two-dimensional matrix, where the activities/processes are listed on one dimension and the products on a second dimension. 5. The key factors in being able to produce low volume products with great variety are lower setup times and cellular manufacturing. Reducing setup times and using manufacturing cells eliminates considerable wait and move time so that cycle time is dramatically reduced. 6. Demand-pull means producing only the products when needed and in the quantities needed. Demand-pull systems reduce/eliminate WIP and finished goods inventories. Inventories are the most significant source of waste in a manufacturing firm. 7. Eight sources of waste are: (1) Defective products; (2) Overproduction of goods not needed; (3) Inventories of goods awaiting further processing or consumption; (4) Unnecessary processing; (5) Unnecessary m