1. Managerial Accounting: Overview Chapter One  FINANCIALMANAGERIAL  OutsideInside  Follow GAAP/IFRSTimely and Relevant  Standard Report FormatReports unstructured

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

3. Push 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

4. Lean Production  Lean means Less Costs  Advantages:  Lower Inventory required  Fewer Defects  Less Wasted Effort  Quicker Customer Response

5. Lean production con’t  Summaries all theories into 1  Value Added  Flow Chart of Activities  Manufacturing Cell  Just in Time (JIT)  Theory of Constraints

6. Value Added  Activities that add value per customer  Chip Box vs Dove Box

7. Flow Chart of Activities  Actions required to make product  Smores  Burn Place between Add SQUEEZE  Marshmellow Graham Cracker chocolate

8. Add the 3 M’s (Manpower, Machines, Materials)  Smores  Burn Place between Add SQUEEZE  Marshmellow Graham Cracker chocolate  Cook Cook Cook Cook  Burner/Fork Fork Clipper Press  Marshmellow 2 Graham Crk Choc Sq 

9. Traditional Production  Several large Machines with only one job each  Mixing Machine  Cutting Machine  Wrapping Machine

10. Manufacturing Work Cell  One Machine performing several jobs  Several Multi-job Machines  Each Machine Mixes-Cuts-Wraps

11. Just In Time (JIT)  Pull Through Production--- Customer initiates  RM  WIP   FG (Customer order)  Shipped immediately to customer  No queing of inventory

12. Theory of Constraints  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