Lanuza,Ma. Sharmaine C.

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II. Management Accounting and Business Environment

1. Just In Time

Just in time means denoting a manufacturing system in which materials or components

are delivered immediately before they are required in order to minimize inventory costs.

Because of fast changing environment mostly business firms provides every possible solution to

all of the problems that occurring in the business area, especially in distributing and transporting

goods or raw materials needed. We all know that the main goal of management is to maximize

profit and minimize cost, this is one way to minimize cost by using just in time. Also one of the

benefit of it is to minimize the future defect on goods or products, for example Jollibee a Filipino

fast food chain where they offer burgers which needs lettuce and can only last for one week to

maintain its freshness, so now Jollibee will order to their supplier of lettuce to deliver them their

goods. After delivering the goods because lettuce can only last for a short time and they need to

maintain its freshness for the customers they’ll use just in time process, after the delivery these

good will go straight to their inventory and no need to stock these on their warehouse. It

minimize the cost and time, it targets zero defects and it improves production scheduling.

2. Benchmarking

It is a measurement of quality of an organization’s policies products, programs strategies

and their comparison with the standard measurement or similar measurements of its peers. An

example for this is our school Technological Institute of the Philippines we adapt this OBTL

learning program by using this strategy. And also our CBE Dean told us that they’re applying this

benchmarking strategy, they went to different Universities in Australia to bench mark, they

usually visit universities and observe what policies they implementing for the students to excel.

And there are many business firms do this strategy too to know what their weaknesses on the

other aspects. It is basically like a research for product innovation to improve its qualities. Its

objectives are to determine are what and where the improvements are called for, to analyze

how organizations achieve their high performance levels and to use this information to improve

performance.

3. Total Quality Management

The continuous process of reducing or eliminating errors in manufacturing streamlining supply

chain management, improving the customer experience and ensuring that employees are up-to-

speed with their training. Total quality management aims to hold all parties involved in the

production process as accountable for the overall quality of the final product or service.

4. E-Commerce

The buying and selling of products and services by businesses and consumers through an

electronic medium, without using any paper documents. E-commerce is widely considered the buying

and selling of products over the internet, but any transaction that is completed solely through electronic

measures can be considered e-commerce. It is amazing how fast and innovative technology today, we

can have everything we want in just one click on our smart phones. Almost business firms today uses

internet for communicating with the consumers and they can have a fast feedback on them too, it also

help companies to minimize their cost and made their service on their customers on time.

5. Balanced Scorecard

The balanced scorecard is a strategic planning and management system that is used extensively in

business and industry, government, and nonprofit organizations worldwide to align business activities to

the vision and strategy of the organization, improve internal and external communications, and monitor

organization performance against strategic goals

6. Theory of Constraint (TOC)

The Theory of Constraints is a methodology for identifying the most important limiting factor (i.e.

constraint) that stands in the way of achieving a goal and then systematically improving that constraint

until it is no longer the limiting factor. In manufacturing, the constraint is often referred to as a

bottleneck. The business firms focus on their weakness to eliminate them one by one.

7. Activity-based Costing Management

Activity based costing (ABC) assigns manufacturing overhead costs to products in a more logical

manner than the traditional approach of simply allocating costs on the basis of machine hours. Activity

based costing first assigns costs to the activities that are the real cause of the overhead. It then assigns

the cost of those activities only to the products that are actually demanding the activities.