1. M ANAGERIAL ACCOUNTING AND BUSINESS ENVIRONMENT CHAPTER ONE

2. D IFFERENCE BETWEEN F INANCIAL AND M ANAGERIAL A CCOUNTING FinancialManagerial Reports for UsersReports for Decision Mks Past ActivitiesFuture Activities ComparisonRelevance AccuracyFast Information Entire OrganizationSegments BS, IN, CF, SE Dept, Cust, Vend, Empl, Pro YES GAAPNO GAAP ExternalReportsReports when needed

3. TRADITIONALLY “Idleness Waste Money” or if manpower and machine are not running you are losing money

4. P USH THROUGH PRODUCTION --- OLD PUSH through Production –old way Three inventories: Raw Materials (RM), Work in Process(WIP), Finished Goods (FG) RM  | WIP  FG Company Queque Results in Large Inventory waiting to be sold

5. T HREE APPROACHES FOR IMPROVEMENT Lean Production Theory of Constraints Six Sigma

6. L EAN P RODUCTION Lean means Less Costs Advantages: Lower Inventory required Fewer Defects Less Wasted Effort Quicker Customer Response

7. L EAN PRODUCTION CON ’ T Summaries all theories into 1 Value Added Flow Chart of Activities Manufacturing Cell Just in Time (JIT) Supply Chain Management and Continuous Improvement

8. V ALUE A DDED Value Chain pg 12 Activities that add value per customer Chip Box vs Dove Box

9. F LOW C HART List Processes or Activities How It Is Made

10. T RADITIONAL P RODUCTION Several large Machines with only one job each Mixing Machine Cutting Machine Wrapping Machine

11. M ANUFACTURING W ORK C ELL One Machine performing several jobs Several Multi-job Machines Each Machine Mixes-Cuts-Wraps

12. J UST I N T IME (JIT) Pull Through Production--- Customer initiates RM  WIP   FG (Customer order) Shipped immediately to customer No queing of inventory

13. S UPPLY C HAIN MANAGEMENT AND C ONTINUOUS I MPROVEMENT Suppliers responsible for Quality of Incoming Parts and Materials Production Workers responsible for Quality during WIP

14. T HEORY OF C ONSTRAINTS Control of Bottlenecks Increase capacity to remove bottleneck where process has smallest capacity Freeway system --- Norwalk on Interstate 5 Throughput time--- Cycle time to manufacture a product

15. S IX S IGMA OR Z ERO D EFECTS Non Value Added Identify process that do not add value or those customer is not willing to pay for Eliminate Non Value Activities Activities that use resources but do not add value