Aagami Case Study - Reducing cost of creation and management of MSDSAagami, Inc.
The chemical company needed to create thousands of material safety data sheets (MSDS) each month to comply with different country regulations, but this was expensive. Aagami helped the company reduce costs by 85% within 6 months by analyzing the situation and facilitating an alliance with an Indian partner to offshore the MSDS creation process.
The document criticizes traditional cost accounting approaches and advocates for lean accounting. Some key points:
- Traditional cost accounting focuses too much on gathering granular cost data and allocating overhead, which wastes time and can lead to bad decisions.
- In lean systems like Toyota Production System, fixed and variable costs behave differently than assumed by traditional accounting. Lean accounting focuses on tracking different metrics.
- Lean accounting aims to minimize inventory levels, track problems and quality issues instead of unit costs, and uses simple methods like calculating labor as a percentage of material costs each month. This reduces waste and provides more accurate information for decision making.
Insteelhbr case study managerial accounting msbSrikanth Ayithy
1) An ABC analysis at Insteel's Andrews plant in 1995-96 found that 45% of customers and products were unprofitable. It also found that the nail business, previously thought moderately profitable, was actually the most profitable.
2) In 1996-97, a follow-up analysis found that while sales and profits had increased, pallet nails had become unprofitable. This was due to excess capacity from a new production line that had been added based on the earlier analysis but was not yet operational.
3) Recalculating costs excluding those from excess/inaccessible capacity from the new line, pallet nails were still profitable in 1996-97, suggesting the new line was not actually required based
Case study - Transaction pricing in a recessionary economyDeepankar Boro
Our client is an FMCG major that sells its products across many large and small retailers. The client is facing pressure from one such large retailer to cut prices across brands and categories. The client is therefore losing money on several products. Our client would like to use analytics to bring in some science into the pricing decision. Our analysis should help the client decide what pricing strategies should be applied to each product.
How would you approach this analysis?
The data available is weekly price and volume data for all client brands at the retailer for a period of 2 years.
Aagami Case Study - Reducing cost of creation and management of MSDSAagami, Inc.
The chemical company needed to create thousands of material safety data sheets (MSDS) each month to comply with different country regulations, but this was expensive. Aagami helped the company reduce costs by 85% within 6 months by analyzing the situation and facilitating an alliance with an Indian partner to offshore the MSDS creation process.
The document criticizes traditional cost accounting approaches and advocates for lean accounting. Some key points:
- Traditional cost accounting focuses too much on gathering granular cost data and allocating overhead, which wastes time and can lead to bad decisions.
- In lean systems like Toyota Production System, fixed and variable costs behave differently than assumed by traditional accounting. Lean accounting focuses on tracking different metrics.
- Lean accounting aims to minimize inventory levels, track problems and quality issues instead of unit costs, and uses simple methods like calculating labor as a percentage of material costs each month. This reduces waste and provides more accurate information for decision making.
Insteelhbr case study managerial accounting msbSrikanth Ayithy
1) An ABC analysis at Insteel's Andrews plant in 1995-96 found that 45% of customers and products were unprofitable. It also found that the nail business, previously thought moderately profitable, was actually the most profitable.
2) In 1996-97, a follow-up analysis found that while sales and profits had increased, pallet nails had become unprofitable. This was due to excess capacity from a new production line that had been added based on the earlier analysis but was not yet operational.
3) Recalculating costs excluding those from excess/inaccessible capacity from the new line, pallet nails were still profitable in 1996-97, suggesting the new line was not actually required based
Case study - Transaction pricing in a recessionary economyDeepankar Boro
Our client is an FMCG major that sells its products across many large and small retailers. The client is facing pressure from one such large retailer to cut prices across brands and categories. The client is therefore losing money on several products. Our client would like to use analytics to bring in some science into the pricing decision. Our analysis should help the client decide what pricing strategies should be applied to each product.
How would you approach this analysis?
The data available is weekly price and volume data for all client brands at the retailer for a period of 2 years.
Activity Based Costing: A Case of Plastim CorporationRahul Dhiman
Activity Based Costing: A Case of Plastim Corporation. This case is about comparison between the Modern Costing system is better than The Traditional System.
Moss and McAdams accounting firm- a case study on job enlargementVikas Soni
This case study examines a situation at the Moss and McAdams Accounting Firm where accountant Zack Olds was assigned to split his time between two project teams led by Bruce Palmer and Ken Crosby. This caused Olds stress as he struggled to balance the demands of both projects and his family life. Despite Palmer and Office Manager Ruby Sands' concerns about Olds' workload, Sands ultimately assigned Olds to work full-time for Crosby's project. The case analyzes the failures of management to support Olds and avoid losing a valuable employee.
The document discusses time driven activity based costing (TDABC), a method for calculating the actual costs of logistic activities based on time studies and measurements. It provides examples of calculating order picking costs based on theoretical estimates versus actual recorded times. Implementing a TDABC model gives visibility into costs per activity and customer profitability. The model can be adapted if tariff structures or costs change by developing it with changeable dimensions. Contact information is provided for questions.
- Pepe Denim was founded in 1984 and had grown to 300 stores by 2011, but profits began declining after 2007 despite consistent sales.
- Vipin estimated increased production and sales but lower profits, suggesting issues with costs.
- Sneha, the marketing manager, suggested launching denim skirts and handbags to utilize existing materials and production.
- After one year, the new products had increased total profits by 25.33% to Rs. 279 million, validating Sneha's recommendation.
Management Accounting - Case Study - Kayla RichardsonKayla Richardson
The document provides an investment review for Kellers' Freehouse, a proposed brewpub venture. It analyzes the financial viability through metrics like NPV, IRR, and break-even point. It also considers market factors and alternatives. Key objectives are to generate $25k salaries, provide returns comparable to similar risk investments, and break-even within two years. However, the objectives may only be attainable with higher revenues or additional financing given high start-up costs that exceed initial capital. Potential problems addressed include location, beer quality, costs, and liability of serving alcohol.
The document discusses how Bechtel used Lean techniques to improve construction of Jubail Industrial City in Saudi Arabia. It summarizes that Bechtel used tools like value stream mapping, process simulation, and standard work to identify inefficiencies causing delays. This included lack of leadership, wasted time in processes, and disorganized inventory. Changes like dedicating resources and establishing pull operations rather than pushing production helped increase panel delivery from 18 to 75 per day. In total, Lean techniques led to a 300% productivity gain and reliably meeting production requirements.
This document contains a case study on human resources accounting and auditing. It discusses how Human Resource Accounting (HRA) measures the cost and value of employees, and how HR audits assess the effectiveness of HR functions and policies. It then provides examples of case studies where HR audits and accounting helped address challenges at different organizations. This includes improving timekeeping and attendance policies at a family-run business, providing training to address technological changes at a bank, ensuring proper fee collection records at a college, and fixing salary administration issues at a private company. The case studies demonstrate how HR audits can identify issues and help establish processes to address them.
Small project underlining difference between cost, price and value. Intended to be a starting point for a greater discussion. How to calculate the cost of something with very limited information.
Manufacturing cost accounting ppt @ mba financeBabasab Patil
The document provides an overview of manufacturing cost accounting concepts and calculations including job order costing, activity based costing, standard costs, and flexible budgets. It discusses calculating product costs, contribution margin, breakeven analysis, master budget components including direct materials budget, labor variances, and flexible budget performance reports. The key information covered relates to accounting for costs in a manufacturing environment.
Forensic Accounting and Fraud Examination: Case Study - Online Pharmacy, 2014
The paper outlines the difference between data analytics and data forensics, discusses the various methodologies that had to be applied in order to obtain and analyse the data (once secured) and briefly touches upon Benford’s Law and suitable software packages.
Textual analysis is discussed in more detail and linked to the significance of integrity of data in order to be accepted as evidence.
The essay concludes with a discussion of money-laundering techniques and an analysis of the various beneficiaries in the case that spanned more than 6,000 affiliates.
This case study describes how MTM tools and Lean principles were used to improve the efficiency of an outdoor cooking appliance production line. The production line originally had 4 operators working in separate workstations with significant wait times. MTM analysis was used to measure task times and identify opportunities. The line was rebalanced into a U-shape with tasks grouped by zone. Operators now push carts between zones, completing full product cycles. This reduced waste and improved flexibility. MTM databases were created to standardize times and enable balancing for new products. The result was a 99.6% balanced line with 4 operators, increasing productivity by 34.68%.
This case was presented in Fall 2009 and revolves around the decentralization of BP America after BP merged with Standard Oil in 1987. In this presentation, the changing role of staff departments is examined in this newly decentralized organization.
Acc- Holcim Merger & Acquisition Case Study snigdha sarkar
Holcim acquired a majority stake in ACC, India's largest cement producer, through a series of agreements with other shareholders of Ambuja Cements India Limited (ACIL), ACC's majority shareholder. Key aspects of the acquisition included Holcim Mauritius purchasing shares of ACIL from other shareholders and subscribing to additional shares, increasing Holcim's total stake in ACIL to 67%. Holcim also gained control of ACC through its majority stake in ACIL. The acquisition price for public shareholders of ACC was Rs. 370 per share, justified based on stock price analyses showing average prices of Rs. 282.94 for the previous 26 weeks and Rs. 350.61 for the previous 2 weeks.
Cost accounting project on AMUL ice creamAnjali Modi
Marginal costing is a technique that differentiates between fixed and variable costs. It involves charging only variable costs to cost units and treating fixed costs as period costs. This allows marginal costing to provide useful information for management decision making like cost control, profit planning, and performance evaluation. Some key advantages of marginal costing include simplicity, improved cost control by avoiding arbitrary allocation of fixed costs, and better analysis of alternative production/sales policies. However, marginal costing also has limitations like difficulty separating fixed and variable costs precisely and not representing profits fully by excluding fixed costs from inventory valuation.
Labour Cost Control in Cost Accounting-B.V.RaghunandanSVS College
The document discusses various aspects of labor cost accounting and management. It covers topics like direct and indirect labor, time keeping, time recording methods, time booking, idle time causes and measurement, overtime causes and authorization, labor turnover measurement and causes, wage systems like time rate and piece rate, and incentive plans like Taylor's differential piece rate system.
Marginal costing is an accounting technique that separates total costs into fixed and variable components. It only includes variable costs when determining the cost of producing an additional unit. This helps management compare costs between time periods and determine profitability. CVP (cost-volume-profit) analysis studies the relationships between selling price, costs, volume, and profits. It shows how costs and profits change with volume and can help with decision making, budgeting, and performance evaluation. While useful for short-term analysis, marginal costing has limitations such as difficulty separating fixed and variable costs.
Cost analysis is an important part of project management. It involves reviewing project costs, evaluating cost elements, and ensuring costs are reasonable and necessary. Key aspects of cost analysis include verifying cost data, analyzing cost trends, evaluating the necessity of costs, and comparing costs to actual past costs and other estimates. Clinical trials are a major cost and involve expenses for manufacturing, staff, payments to sites and researchers, and materials. Instrumentation costs depend on equipment size and material. Raw material costs are based on material balances and unit prices. Effective project cost management can help reduce stress, prioritize goals, drive efficiency, and increase accountability.
Activity Based Costing: A Case of Plastim CorporationRahul Dhiman
Activity Based Costing: A Case of Plastim Corporation. This case is about comparison between the Modern Costing system is better than The Traditional System.
Moss and McAdams accounting firm- a case study on job enlargementVikas Soni
This case study examines a situation at the Moss and McAdams Accounting Firm where accountant Zack Olds was assigned to split his time between two project teams led by Bruce Palmer and Ken Crosby. This caused Olds stress as he struggled to balance the demands of both projects and his family life. Despite Palmer and Office Manager Ruby Sands' concerns about Olds' workload, Sands ultimately assigned Olds to work full-time for Crosby's project. The case analyzes the failures of management to support Olds and avoid losing a valuable employee.
The document discusses time driven activity based costing (TDABC), a method for calculating the actual costs of logistic activities based on time studies and measurements. It provides examples of calculating order picking costs based on theoretical estimates versus actual recorded times. Implementing a TDABC model gives visibility into costs per activity and customer profitability. The model can be adapted if tariff structures or costs change by developing it with changeable dimensions. Contact information is provided for questions.
- Pepe Denim was founded in 1984 and had grown to 300 stores by 2011, but profits began declining after 2007 despite consistent sales.
- Vipin estimated increased production and sales but lower profits, suggesting issues with costs.
- Sneha, the marketing manager, suggested launching denim skirts and handbags to utilize existing materials and production.
- After one year, the new products had increased total profits by 25.33% to Rs. 279 million, validating Sneha's recommendation.
Management Accounting - Case Study - Kayla RichardsonKayla Richardson
The document provides an investment review for Kellers' Freehouse, a proposed brewpub venture. It analyzes the financial viability through metrics like NPV, IRR, and break-even point. It also considers market factors and alternatives. Key objectives are to generate $25k salaries, provide returns comparable to similar risk investments, and break-even within two years. However, the objectives may only be attainable with higher revenues or additional financing given high start-up costs that exceed initial capital. Potential problems addressed include location, beer quality, costs, and liability of serving alcohol.
The document discusses how Bechtel used Lean techniques to improve construction of Jubail Industrial City in Saudi Arabia. It summarizes that Bechtel used tools like value stream mapping, process simulation, and standard work to identify inefficiencies causing delays. This included lack of leadership, wasted time in processes, and disorganized inventory. Changes like dedicating resources and establishing pull operations rather than pushing production helped increase panel delivery from 18 to 75 per day. In total, Lean techniques led to a 300% productivity gain and reliably meeting production requirements.
This document contains a case study on human resources accounting and auditing. It discusses how Human Resource Accounting (HRA) measures the cost and value of employees, and how HR audits assess the effectiveness of HR functions and policies. It then provides examples of case studies where HR audits and accounting helped address challenges at different organizations. This includes improving timekeeping and attendance policies at a family-run business, providing training to address technological changes at a bank, ensuring proper fee collection records at a college, and fixing salary administration issues at a private company. The case studies demonstrate how HR audits can identify issues and help establish processes to address them.
Small project underlining difference between cost, price and value. Intended to be a starting point for a greater discussion. How to calculate the cost of something with very limited information.
Manufacturing cost accounting ppt @ mba financeBabasab Patil
The document provides an overview of manufacturing cost accounting concepts and calculations including job order costing, activity based costing, standard costs, and flexible budgets. It discusses calculating product costs, contribution margin, breakeven analysis, master budget components including direct materials budget, labor variances, and flexible budget performance reports. The key information covered relates to accounting for costs in a manufacturing environment.
Forensic Accounting and Fraud Examination: Case Study - Online Pharmacy, 2014
The paper outlines the difference between data analytics and data forensics, discusses the various methodologies that had to be applied in order to obtain and analyse the data (once secured) and briefly touches upon Benford’s Law and suitable software packages.
Textual analysis is discussed in more detail and linked to the significance of integrity of data in order to be accepted as evidence.
The essay concludes with a discussion of money-laundering techniques and an analysis of the various beneficiaries in the case that spanned more than 6,000 affiliates.
This case study describes how MTM tools and Lean principles were used to improve the efficiency of an outdoor cooking appliance production line. The production line originally had 4 operators working in separate workstations with significant wait times. MTM analysis was used to measure task times and identify opportunities. The line was rebalanced into a U-shape with tasks grouped by zone. Operators now push carts between zones, completing full product cycles. This reduced waste and improved flexibility. MTM databases were created to standardize times and enable balancing for new products. The result was a 99.6% balanced line with 4 operators, increasing productivity by 34.68%.
This case was presented in Fall 2009 and revolves around the decentralization of BP America after BP merged with Standard Oil in 1987. In this presentation, the changing role of staff departments is examined in this newly decentralized organization.
Acc- Holcim Merger & Acquisition Case Study snigdha sarkar
Holcim acquired a majority stake in ACC, India's largest cement producer, through a series of agreements with other shareholders of Ambuja Cements India Limited (ACIL), ACC's majority shareholder. Key aspects of the acquisition included Holcim Mauritius purchasing shares of ACIL from other shareholders and subscribing to additional shares, increasing Holcim's total stake in ACIL to 67%. Holcim also gained control of ACC through its majority stake in ACIL. The acquisition price for public shareholders of ACC was Rs. 370 per share, justified based on stock price analyses showing average prices of Rs. 282.94 for the previous 26 weeks and Rs. 350.61 for the previous 2 weeks.
Cost accounting project on AMUL ice creamAnjali Modi
Marginal costing is a technique that differentiates between fixed and variable costs. It involves charging only variable costs to cost units and treating fixed costs as period costs. This allows marginal costing to provide useful information for management decision making like cost control, profit planning, and performance evaluation. Some key advantages of marginal costing include simplicity, improved cost control by avoiding arbitrary allocation of fixed costs, and better analysis of alternative production/sales policies. However, marginal costing also has limitations like difficulty separating fixed and variable costs precisely and not representing profits fully by excluding fixed costs from inventory valuation.
Labour Cost Control in Cost Accounting-B.V.RaghunandanSVS College
The document discusses various aspects of labor cost accounting and management. It covers topics like direct and indirect labor, time keeping, time recording methods, time booking, idle time causes and measurement, overtime causes and authorization, labor turnover measurement and causes, wage systems like time rate and piece rate, and incentive plans like Taylor's differential piece rate system.
Marginal costing is an accounting technique that separates total costs into fixed and variable components. It only includes variable costs when determining the cost of producing an additional unit. This helps management compare costs between time periods and determine profitability. CVP (cost-volume-profit) analysis studies the relationships between selling price, costs, volume, and profits. It shows how costs and profits change with volume and can help with decision making, budgeting, and performance evaluation. While useful for short-term analysis, marginal costing has limitations such as difficulty separating fixed and variable costs.
Cost analysis is an important part of project management. It involves reviewing project costs, evaluating cost elements, and ensuring costs are reasonable and necessary. Key aspects of cost analysis include verifying cost data, analyzing cost trends, evaluating the necessity of costs, and comparing costs to actual past costs and other estimates. Clinical trials are a major cost and involve expenses for manufacturing, staff, payments to sites and researchers, and materials. Instrumentation costs depend on equipment size and material. Raw material costs are based on material balances and unit prices. Effective project cost management can help reduce stress, prioritize goals, drive efficiency, and increase accountability.
1. PTC.comPage 1 of 4 | General Motors
Case Study
How GM is Using Data and Smart
Analytics to Create a Global Parts
Pricing Strategy
General Motors
Motor vehicle spare parts are big business,
generating more than $2 trillion US dollars
annually. With so much revenue at stake,
the competition between original equipment
manufacturers (OEMs) and after-market
providers is fierce.
2. PTC.comPage 2 of 4 | General Motors
Case Study
Detroit-based General Motors is one of the industry’s largest OEMs. Its service
parts organization is responsible for purchasing and pricing more than 1.5 million
spare parts and up to 8 million stock keeping units (SKUs). GM maintains inventory
in more than 30 countries, which it stores in 72 warehouses and packs and ships
through 32 processing centers.
In 2006, GM management began an effort to overhaul its pricing strategy for its
global brand portfolio, which includes Buick, Cadillac, Chevrolet, GMC, Holden, HSV,
Opel, Vauxhall, Wuling, Baojun and Daewoo.
“It was not chaos, but it was not best practices,” says Andrew West, GM manager,
global pricing process & system optimization. “What we were doing was more art
than science. It was causing concern because we needed more cost savings and
revenue than this approach could provide.”
West had earned praise for improving the performance of GM’s pricing operation in
the United Kingdom. After a transfer to GM’s headquarters in Detroit, he was tasked
with reinventing and consolidating the company’s various pricing processes.
Creating a Consistent View for a Global Market
“Time was an issue,” says West. “We needed a medium-term solution, not a
10-year plan.”
West wanted a proven platform that could be rolled out quickly to GM’s four market
regions (North America, European Union, South America, and Asia-Pacific.) He
wanted to make data more visible, accurate, and timely. His vision also included
creating a collaborative environment where advanced users from each market could
share best practices and information that would allow the company to maximize
competitiveness and profitability.
West evaluated seven solutions before recommending PTC’s Service Parts Pricing to
GM management.
“PTC’s solution provides all the features GM needs to
transform parts pricing into a competitive advantage. It
supports price alignment, market-adaptive pricing, and
price elasticity and includes mechanisms for applying
global pricing strategies to a part’s entire lifecycle.”
Jon Utterback
VP of Solution Management
3. PTC.comPage 3 of 4 | General Motors
Case Study
PTC also had the business cases to support its solution.
“We knew it would fit the needs of our users globally
and provide a consistent view of the data and market
conditions,” says West. “The other offers required more
customization and longer implementations.”
Rationalizing a Huge Database
To deploy PTC Service Parts Pricing, West needed
to extract data from a massive database that houses
information from 120 applications and other sources.
Some of these data sources are legacy applications from
the 1970s that are not well documented, which makes
them difficult to modify and integrate. While the company
is migrating these systems to a standard SAP platform,
that effort will not be complete for several years.
Extracting the data was complicated because many
of the fields followed different conventions. For
example, some countries, such as the U.S., denominate
currencies with commas and periods. Other countries
use periods and commas or eliminate one or both
symbols entirely. Because of GM’s complex business
structure, regions and markets also group parts and
commodities differently, which made normalizing SKU
data very challenging.
You have to create consistency where the data lives, or
your analysis will be faulty, says West. “You end up with
a ‘garbage-in, garbage-out’ situation. To avoid that, we
implemented middleware to clean up the data.
Helping Users to Gain Proficiency
The project began with a pilot phase, which was
completed in December 2009 when GM’s Dubai
operation was the first location to take Service Parts
Pricing live. The implementation team used this
experience to build an overall deployment roadmap.
The roadmap has enabled GM to quickly onboard
other regions and countries, including Australia,
South America, North America, and Shanghai. The
total system rollout is ongoing with the ultimate goal
of connecting all the regional pricing instances into a
single global data view.
“Training initially is in-person and
very hands-on. We are sending
experienced users to the regions
to demo the solution and create
centers of expertise. At the same
time, PTC is working with us to
create an on-demand training
program that will allow users to
earn a proficiency certificate.”
Andrew West
GM manager, global pricing process & system optimization
Because the new pricing strategy will benefit from
building additional institutional knowledge, GM has
modified its personnel practices and is now keeping
pricing employees in place for at least three years. In
the past, the department maintained a core team of
pricing experts and rotated in other employees into
the department to familiarize them with the “nuts and
bolts” of the business.