AKUNTANSI MANAJEMEN

SESI 9: BIAYA KUALITAS*

Achmad Zaky,MSA.,Ak.,SAS.,CMA.,CA

* Slide ini di sadur dari Slide Resmi Hansen-Mowen 8Th Edition

Quality Defined

A quality product or service is one

that meets or exceeds customer

expectations...

Quality Defined

… on the following eight dimensions:

Performance

Aesthetics

Serviceability

Features

Reliability

Durability

Quality of

conformance

Fitness for use

Quality Defined

… on the following eight dimensions:

Performance

Aesthetics

Serviceability

Features

Reliability

Durability

Quality of

conformance

Fitness for use

How consistently and well a product

functionsThe appearance of tangible products

(style, beauty)Measures the ease

of maintaining and/or repairing

the product

Characteristics of a product that differentiate

functionally similar products

The probability that the product or service

will perform its intended function for a specified length of time

Quality Defined

… on the following eight dimensions:

Performance

Aesthetics

Serviceability

Features

Reliability

Durability

Quality of

conformance

Fitness for use

The length of time a product functionsA measure of how

a product meets its specificationsThe suitability of the

product for carrying out its advertised

functions

Quality Defined

A defective product is one

that does not conform to

specifications.

Quality Defined

Zero defectsmeans that all

products conform to

specifications.

Quality Defined

The definition of quality-related activities imply four categories of quality costs:

1) Preventive costs

2) Appraisal costs

3) Internal failure costs

4) External failure costs

Incurred to prevent poor

quality or services being

produced

Incurred to determine whether

products and services

conform to requirements

Incurred when products and

services do not conform to

specifications

Incurred when products and services fail to

conform to requirements

after being delivered

9

What are costs of quality?

Costs that exist because poor quality does

or may exist:

• Control activities to prevent, detect poor

quality.

• Failure activities are responses to poor

quality.

Examples of Quality Costs

Prevention costs

Quality engineering

Quality training programs

Quality planning

Quality reporting

Supplier evaluation and selection

Quality audits

Quality circles

Field trials

Design reviews

Examples of Quality Costs

Appraisal Costs

Inspection of raw materials

Testing of raw materials

Packaging inspection

Supervising appraisal

Product acceptance

Process acceptance

Inspection of equipment

Testing equipment

Outside endorsements

Internal failure costs

Scrap

Rework

Downtime (defect related)

Reinspection

Retesting

Design changes

Examples of Quality Costs

Cost of recalls

Lost sales

Returns/allowances

Warranties

Repairs

Product liability

Customer dissatisfaction

Lost market share

Complaint adjustment

External failure costs

Examples of Quality Costs

14

CLASSIFYING QUALITY COSTS

• Observable▫ Costs available in accounting records

• Hidden▫ Significant

▫ Not directly available in accounting records

▫ Estimated

Multiplier method

Market research

Taguchi quality loss function

16

QUALITY COST REPORT

Provides insights to companies serious about quality:

▫ Reveals magnitude of quality costs by category Allows managers to assess financial

impact of quality costs in each category

▫ Shows distribution of quality costs by category Allows managers to assess relative

importance of each category

17

QUALITY COST REPORT

18

QUALITY COST DISTRIBUTION

EXHIBIT 15-4

Failure

Costs

Control

Activities

ACCEPTABLE QUALITY LEVEL (AQL): Definition

Is the optimal balance between

control costs & failure costs.

ZERO DEFECTS MODEL: Definition

Claims that it is cost

beneficial to reduce non-

conforming units to zero.

Quality Cost Graph

Cost

0

Percent Defects

100%

Failure Costs

Control Costs

Total Quality Costs

AOL

Contemporary Quality Cost Graph

Cost

0

Percent Defects

100%

Failure Costs

Control Costs

Total Quality Costs

22

What is the strategy for

reducing costs based on?

The strategy is based on the premise

that a) there is a root cause for each

failure, b) causes are preventable,

and c) prevention is always cheaper.

23

ABM & OPTIMAL QUALITY COSTS

ABM classifies costs as value-added & non-value-added and recommends non-value-added costs be eliminated.

Value-added quality costs

Prevention activities, when performed efficiently

Non-value-added quality costs

Appraisal costs

Failure costs (both internal & external)

Productivity: Measurement and Control

Productivity is concerned with producing output

efficiently, and is it specifically addresses the relationship of output and

the inputs used to produce the outputs.

Technical Efficiency

•Technical Efficiency is the condition where no more of any one input is used than necessary to produce a given output.

▫Technical efficiency improvement is when less inputs are used to produce the same output or more output are produced using the same input.

Current productivity

Outputs:

6

Inputs:

Labor

Capital

4

Technical EfficiencySame Output, Fewer Inputs

More Output, Same Inputs

Outputs:

6

Outputs:

8

Inputs:

Labor

Capital

4

Inputs:

Labor

Capital

3

Technical EfficiencyMore Output, Fewer Inputs

Technically Efficient Combination I:

Outputs:

8

Outputs:

8

Inputs:

Labor

Capital

3

Inputs:

Labor

Capital

$20,000,000

3

Technical Efficiency

Technically Efficient Combination II:

Of the two combinations that produce the same output, the least costly combination would be chosen.

Outputs:

8

Inputs:

Labor

Capital

$25,000,000

2

AKUNTANSI MANAJEMEN

SESI 10: LEAN MANUFACTURING &

ACCOUNTING, TARGET COSTING, BSC *Achmad Zaky,MSA.,Ak.,SAS.,CMA.,CA

* Slide ini di sadur dari Slide Resmi Hansen-Mowen 8Th Edition

30

LEAN MANUFACTURING: Definition

Is an approach designed to

eliminate waste & maximize

customer value.

Continuous improvement

efforts

31

DIMENSIONS OF LEAN MANUFACTURING

•Delivering the right product ▫ Right quantity

▫ Right quality (zero defect)

▫ At time needed

▫ At lowest possible cost

•A cost reduction strategy that redefines activities performed

32

5 PRINCIPLES OF LEAN THINKING

1. Precisely specify value by each particular product

2. Identify the “value stream” for each

3. Make value flow without interruption

4. Let customer pull value from producer

5. Pursue perfection

33

VALUE BY PRODUCT: Definition

Is when only value-added

features should be produced;

non-value-added activities

should be eliminated.

34

VALUE STREAM: Definition

Is all activities, both value-added

& non-value-added, required to

bring product group or service from

starting point to finished product in

hands of customer.

35

VALUE STREAM

Types of value streams▫ Order fulfillment▫ New product

Value stream activities▫ Non-value-added

Activities avoidable in the short run Unavoidable activities due to

current technology or production method

▫ Value added

36

ORDER FULFILLMENT VALUE STREAM

Order fulfillment provides current

products to current customers.

37

VALUE FLOW

Changes the traditional manufacturing setup for batches to a cellular approach in order to:

▫ Reduce setup time▫ Reduce changeover time

MANUFACTURING CELL: Definition

Contains all operations in close proximity that

are needed to produce a family of products.

38

TRADITIONAL BATCH SYSTEMNote time lost in moving & waiting.

39

CELLULAR SYSTEMTime saved over traditional manufacturing

is 90 minutes (150 – 60).

40

PULL VALUE

Lean manufacturing uses a demand pullsystem to reduce waste.▫ JIT inventory

Reduces inventory levels

Requires close relations with suppliers

▫ Suppliers benefit from

Long term relations

Better competitive position

Lean - Six SigmaUpaya terus menerus (continuous improvement efforts) guna:

1) Menurunkan variasi proses, agar

2) Meningkatkan kapabilitasproses, dalam

3) Menghasilkan produk bebaskesalahan hingga 3,4 DPMO (Defects Per Million opportunities), untuk

4) Meningkatkan nilai pelanggan

Sigma DPMO

1 691.462

2 308.538

3 66.807

4 6.210

5 233

6 3,4

42

LEAN ACCOUNTING: A Comparison

Traditional cost management systems may not be compatible with Lean Accounting.

Lean Accounting makes product costs more simple & direct. More labor and

overhead costs are assigned to products through direct tracing rather than

allocation.

43

FOCUSED VALUE STREAMS: Definition

Allow overhead costs to be

assigned through driver

tracing of costs in a lean

accounting system.

44

FOCUSED VALUE STREAMS

• Are more simple & accurate in product costing

• Have limitations▫ Initially, labor costs may be difficult to assign

if people are employed in several value streams

▫ Labor costs should assigned proportionately

• Are organized around a family of products

45

What are product life cycle

& life cycle costs?

Product life cycle is the time a

product exists from conception

to abandonment. Life cycle

costs are all costs associated

with a product for its life cycle.

46

VALUE CHAIN: Definition

Is the set of activities required to design, develop,

produce, market, and service a product.

When are most costs

incurred?

During the development stage.

This is also the time costs

should best be managed.

47

WHOLE-LIFE PRODUCT COST

Product cost is

▫ Nonrecurring costs

Planning,

Designing,

Testing

▫ Manufacturing costs

▫ Logistic costs

▫ Customer’s postpurchase costs

48

TARGET COSTING MODEL

When desired profit

not met, target product

costing to redesign

product, process.

Is the difference

between sales price

needed to capture a

predetermined market

share & desired per-

unit profit.

49

BALANCED SCORECARD: Definition

Translates an organization’s

mission & strategy into

operational objectives &

performance measures.

51

STRATEGY TRANSLATION PROCESS

Vision & strategy

works through 4

perspectives to reach

targets & initiatives.

Strategic Goals

Balanced Scorecard Project <Back Forward>

Establish Strategic Goals

Criteria Menu

Marketplace

Industry Trends

Technology

Competition

Past Performance

___________

___________

______________________

EXAMPLE ->

Criteria for Defining Goals Define Goals

We will increase revenues by 40% over the next three yearsPast Performance

Strategic Map

Balanced Scorecard Project <Back Forward>

Measurement Lag / Lead Comparison

Strategic Objective Lag / Outcome Measure Lead / Driver Measure

Fin

an

cia

l

Most of your financial

measures are outcomes

Cu

sto

mer

Most of your customer

measures are outcomes

Pro

cesses

Mix of outcomes and drivers

L &

G

Most of your Learning and

Growth measures will be

drivers

55

PERFORMANCE MEASURES

Must be balanced between:▫ Lead measures (performance drivers)

▫ Lag (outcome) measures

▫ Objective (quantifiable & verifiable) measures

▫ Subjective (more judgmental) measures

▫ Financial & nonfinancial measures

▫ External & internal measures

Balanced Scorecard Project <Back Forward>

Measurement Basics

Measurement Form Advantage Disadvantage

Numbers Simple and easy to understand Only as good as the strategic objective

Index Allows combining several measurements Hard to understand what is happening

Percentages Good measure for time span May be not be used correctly

Ratings Good measure for qualitative information Can be subjective on how it was derived

Ratios Measures critical relationships May require additional analysis to reach conclusion

Rankings Close gaps for top ranked companies Not appropriate for lower ranked companies

Measurement Type Advantage Disadvantage

Outcomes Objective and easy to capture Focused on past, not current

Drivers Predictive and leading the organization Difficult to derive and support

A quick and basic understanding of different aspects of measurement.