Supply chain costing and performance management

✍ Scribed by Terrance Pohlen; Thomas P. Klammer; Gary Cokins

• Year: 2021
• Tongue: English
• Leaves: 269
• Edition: Second
• Category: Library

✦ Table of Contents

Cover
Title Page
Copyright Page
Contents
Preface
About the Authors
Chapter 1 The Supply Chain Costing Journey: Why You Need to Take It
Commonly Accepted Observations
The Journey to Implementing Supply Chain Costing
Develop a Foundation for Effective Supply Chain Costing
Create an Appropriate Structure for Capturing Costs and Supporting Management Decision Making
Select the Appropriate Tools to Support Information Requirements
Link Cost Information to Performance Measurement and Value Creation
Strategies for Overcoming the Challenges Posed by Supply Chain Costing
Notes
Chapter 2 Key Observations That Support the Development of the Book
Key Findings
Firms Are at Multiple Stages in the Supply Chain Costing Journey
Common Supply Chain Definitions Are Missing
Costing Is an Essential Supply Chain Competency
Two-Way Sharing of Cost Information Is Limited
Trust Issues Influence Cost Information Exchange
Supply Chain Costing Increases the Complexity of Cost Systems
Cost Transparency Is Essential but Unlikely for Supply Chain Costing
Other Findings
Notes
Chapter 3 The Nature of Supply Chain Costing
Nature of Supply Chain Management
A Need for a Broader View of a Supply Chain
Supply Chain Costing Framework
The Next Frontier in Supply Chain Cost Management
Supply Chain Management Is Complex
Arraying Costs Along Three Dimensions
How Firms Are Responding to the Need—Four Approaches
Integrating Supply Chain Activities
Supply Chain Costing Definition
Notes
Chapter 4 Developing a Foundational Understanding of Strategic Supply Chain Cost Management
Importance of Supply Chain Costing
Magnitude of Supply Chain Costs
Importance of Measuring and Managing Supply Chain Costs
Identifying the Determinates of Supply Chain Cost Systems
Structure of the Supply Chain
Operating Environment
Strategic Positioning
Production Methods
Documenting Supply Chain Decisions and Production Processes
Notes
Chapter 5 Why Supply Chain Cost Systems Differ from Traditional Cost Systems
Cost Data Needs
Change to Reflect Modern Data Needs
Management Perception of Costs
Why Allocation Matters
Supply Chain Costing Increases the Complexity of Cost Systems
Understanding Supply Chain Costs
Reasons Supply Chain Costing Must Differ from Traditional Costing
Supply Chain Costing Needs
Committed Costs
Differences between Traditional and Supply Chain Costing
Objective
Focus
Cost Objects
Cost Drivers
Linkages, Precision, Scope, and Visibility
Chapter 6 Overview of Cost Tools and Cost Classification
Ways to Think about Supply Chain Costing Tools
The Three Categories of Managerial Accounting
The “What?,” “So What?,” and “Then What?” Questions
Cost Classification for Many Purposes
The Need to Understand Costs to Answer Questions
The Descriptive versus Predictive View of Costs
Supply Chain Costing as a Combination of Costing Techniques
Major Supply Chain Costing Techniques
Notes
Chapter 7 Indirect Costs, the Influence of Cost Allocation, and the Need to Understand Activities
Indirect Costs and Allocation
Nature of Cost Allocations
Influence of Cost Allocation
The Need for Sharing Indirect Cost Information
The Process View of Costing
The Two Views of Costs: The Assignment View versus the Process View
Vertical Cost Assignment View
Horizontal Cost Assignment View
The Process View—Value Stream Mapping
Activity-Based Management Fundamentals
Performing an ABM Analysis
Why Use ABM and ABC?
Notes
Chapter 8 The Need for Value Chain Analysis
Value Chain Analysis
An Example
Dealing with Rising Costs
Basics of Value Chain Cost Analysis
Steps in Using VCA to Analyze Supply Chain Costs
Using Value Chain Analysis Results
The Value of Cooperative Costing across the Value Chain
Using Cost Estimation Capability across the Value Chain
Notes
Chapter 9 Customer and Distribution Channel Profitability Analysis
The Problem with Traditional Accounting
Good (Low Maintenance) versus Bad (High Maintenance) Customers
Supply Chain Management’s Need for Customer Profitability Information
An Approach to Customer Profitability Analysis
Much of the Data Already Exists
Reasons to Rationalize Which Customers to Focus On
Value of Customer Profitability Analysis
Activity-Based Costing (ABC) Resolves Deficiencies with Traditional Costing
Cumulative Profit Graphs: The “Whale Curve”
Expanding the CFO’s Service to Managers
Notes
Chapter 10 Tools for Reducing Supply Chain Costs
Standard Costing
Controlling and Reducing Costs
Activity-Based Costing (ABC)
Implementing ABC with Rapid Prototyping
ABC Fundamentals
ABC Multiple-Stage Cost Assignment Network
Landed Costing
Kaizen Costing
Note
Chapter 11 Supply Chain Cost Planning Tools
Budgeting—Using Work Activities
Activity-Based Budgeting: An Improved Cost Planning Tool
Target Costing
Target Costing Process
Target Costing Variations
Life-Cycle Costing
Capital Investment Analysis
The Steps
Make versus Buy—General Outsourcing Decisions
Capacity Analysis
Notes
Chapter 12 Align Performance Measures with the Strategy
Linking Cost and Performance
Issues with Many Existing Performance Measures
Linking Supply Chain Costing to Performance Measurement
Using the Supply Chain Costing Framework to Translate Supply Chain Performance into Financial Performance
Supply-Side Value Analysis
Customer-Side Value Analysis
Integrating Supply Chain Costing into a Balanced Scorecard
The Mistake of Implementing a Balanced Scorecard without Its Strategy Map
Measurements Are Far More a Social System Than a Technical One
An Automobile GPS Navigator Analogy for an Organization
How Are Balanced Scorecards and Dashboards Different?
A Balanced Scorecard and Dashboards Serve Different Purposes
Scorecards Link the Executives’ Strategy to Operations and to the Budget
Dashboards Move the Scorecard’s Dials
Integrating Costing with Strategy, Customers, Processes, Measures, and Shareholders
Adding Value Through Linkages
Notes
Chapter 13 Accept the Challenge of Improving Supply Chain Costing
Behavioral Challenges
Lack of Trust
Limited Two-Way Sharing of Cost Information
Inequitable Allocation of Resulting Benefits and Burdens
Technical Challenges
Limited Cost Knowledge
Lack of Cost Estimation Capability
Inconsistent Definition and Calculation of Cost across the Supply Chain
Strategies Supply Chain Cost Leaders Use for Overcoming the Challenges
Cost Estimation
Leveraging Information-Sharing Requirements
Pilot Projects
New Trading Partners
Value-Based Strategy
What Still Needs to Be Done as the Supply Chain Costing Journey Continues
Overall Conclusions
Notes
Appendix: Additional Process and Productivity Tools for Supply Chain Costing
Unit Costs of Outputs and Benchmarking
Cost of Quality (COQ)
Time-Driven Activity-Based Costing (TDABC)
Resource Consumption Accounting (RCA) and German Cost Accounting’s GPK
Accounting for Lean Management
Theory of Constraints Throughput Accounting
Notes
Index
EULA