Management Accounting in Modern Business
2. The six M’s of modern industrial organizations are: money, manufacturing, machinery, manpower, market, management. These are all related in a way because in order to be successful in a business you must focus on all six of these equally. Mass production x efficiency = success.
3. Demings 14 points method: 1) Create a statement of aims and purposes of the company to give to the employees. 2) Learn the new philosophy. 3) Understand the purpose of inspection, for improvement. 4) End the awarding based on price tag alone.
5) Improve the constantly the system of production and service. 6) training 7) Teach leadership 8) Drive out fear, create trust. 9) Optimize towards the aims and purposes of the company. 10) Eliminate exhortions for the workforce. 11) Eliminate numerical quotas, Eliminate M..B.O. 12) Remove barriers for pride of workmanship. 13) Encourage education and self-improvement. 14) Take action to accomplish the transformation.
4. A system is: A network of functions within an organization that work together for the aim of the company. Characteristics: Aim clear to everyone, must be viewed positively, separate parts work together.
6. Paradigm Shifters: pioneers- they are risk takers, open the door for the rest and made it safe. Settlers- they will have problems with the future, need proof it is safe. Japan has the best paradigm pioneers. I would place myself under pioneer, because i am always will to take risks, I would rather find out myself rather than to follow behind someone else.
9. A business’s relationship with the customer is very important, the relationship now is not just to make money off the customer, but to build a trust so the customer knows they he/she is wanted and appreciated. A good example of this is: Wal-Mart has a policy that if you own a RV and traveling that you are allowed to park your RV in their parking lot over night. Also, business’s are now answering the customer service phones personally instead of a operator telling you to push all kinds of buttons.
7. What is meant by this definition is simply not one person can achieve a companies goal in succeeding. Everyone in the company is going to have to be willing to work together, which means the upper-level management is going to have to work with the lower-level management. This means everyone in the company is going to know what is going on and what the specific goals of the company are. By doing this everything in the company will run a lot smoother and more efficient. An example of this would be Louisville Slugger, every employee in this company knows what is going on in each department and everyone is willing to help each other no matter what department they are in.