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 Durability
Aesthetics Quality of
conformance
Serviceability
Fitness for use
Features
Reliability
 Quality Defined
… on the following eight dimensions:
How consistently
Performance and well a product
Durability
The appearance
functions of
Aesthetics tangible
Quality
Measuresproducts
ofthe ease
(style, beauty)
conformance
of maintaining
Serviceability Characteristics of a
and/or
product repairing
that
Fitness
The for usethat
probability
the product
Features differentiate
the product or
functionally service
similar
Reliability will perform its
products
intended function for a
specified length of time
 Quality Defined
… on the following eight dimensions:
The length of time
a product
Performance Durability
A measure of how
functions
a product meets
Aesthetics Quality of
Theits specifications
suitability of the
Serviceability
conformance
product for carrying
out its advertised
Fitness for use
Features
functions
Reliability
Quality Defined

A defective
product is one
that does not
conform to
specifications.
 Quality Defined

Zero defects
means that all
products
conform to
specifications.
 Quality Defined
The definition of quality-related activities
Incurred
imply four categories of qualityIncurred
costs: to to
prevent poor
1) Preventive costs determine
quality or
whether
services being
Incurred when
2) Appraisal costs Incurred
products and when
produced
products and
products and
services
3) Internal failure costs services do not
services
conform to fail to
conform to
4) External failure costs conform to
requirements
specifications
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
Examples of Quality Costs

Internal failure costs

Scrap
Rework
Downtime (defect related)
Reinspection
Retesting
Design changes
Examples of Quality Costs
External failure costs
Cost of recalls
Lost sales
Returns/allowances
Warranties
Repairs
Product liability
Customer dissatisfaction
Lost market share
Complaint adjustment
 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

Failure Control
Costs Activities

EXHIBIT 15-4
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
Total
Cost Quality
Costs Failure Costs

Control Costs
0
AOL 100%

Percent Defects
Contemporary Quality Cost Graph
Cost Total
Quality
Costs Failure Costs

Control Costs

0 100
%
Percent Defects
 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
Inputs: Outputs:
Labor
4
Capital
6
Technical Efficiency
Same Output, Fewer Inputs
Inputs: Outputs:
Labor
3 6
Capital

More Output, Same Inputs

Inputs: Outputs:
Labor
4 8
Capital
 Technical Efficiency
More Output, Fewer Inputs
Inputs: Outputs:

3
Labor

Capital
8
Technically Efficient Combination I:
Inputs: Outputs:

3
Labor

Capital
8
$20,000,000
 Technical Efficiency
Technically Efficient Combination II:
Inputs: Outputs:

2
Labor

Capital
8
$25,000,000

Of the two combinations that produce the same

output, the least costly combination would be chosen.
 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 SYSTEM

Note time lost in moving & waiting.
 39

CELLULAR SYSTEM
Time saved over traditional manufacturing
is 90 minutes (150 – 60).
 40

PULL VALUE

Lean manufacturing uses a demand pull

system to reduce waste.
▫ JIT inventory
 Reduces inventory levels
 Requires close relations with suppliers
▫ Suppliers benefit from
 Long term relations
 Better competitive position
 Lean - Six Sigma
Upaya terus menerus (continuous
improvement efforts) guna:
1) Menurunkan variasi proses, Sigma DPMO

agar 1 691.462
2) Meningkatkan kapabilitas 2 308.538
proses, dalam 3 66.807
3) Menghasilkan produk bebas 4 6.210
kesalahan hingga 3,4 DPMO 5 233
(Defects Per Million 6 3,4
opportunities), untuk
4) Meningkatkan nilai pelanggan
 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 Criteria for Defining Goals Define Goals
Marketplace
Industry Trends
Technology
Competition
Past Performance
___________
___________
___________
___________
EXAMPLE -> Past Performance We will increase revenues by 40% over the next three years
Strategic Map
Balanced Scorecard Project <Back Forward>
Measurement Lag / Lead Comparison

Strategic Objective Lag / Outcome Measure Lead / Driver Measure

Most of your financial
measures are outcomes
Financial

Most of your customer

Customer

measures are outcomes

Mix of outcomes and drivers

Processes

Most of your Learning and

Growth measures will be
L&G

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
A quick and basic understanding of different aspects of measurement.
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