MAF 635

STRATEGIC MANAGEMENT
ACCOUNTING
PREPARED BY:
NAJATUL HUSNA BINTI MOHD NASIR2013406458
NUR AMALINA BINTI ROMLI

2013432856

NURAZURIN BINTI SHAHLI 2013225844

COURSE
OUTLINE

Ecommer
ce

MRP

PARETO
ANALYSI
S

Strategic
manufacturi
ng planning
CAM

MRP II

CAD

ERP

E-COMMERCE
Sellin
g

Buyin
g
The exchange
of goods and
services for
money

distributi
ng

Involves supply chain management, e-marketing,

online marketing, EDI
Electronic Technology
Internet
Extranet/intranet
Protocols

E-Commerce Mechanism
Enables new ways of creating, delivering
and capturing value to customers.
Exchange information, content, agreements,
and services among parties that are
connected to through the Internet.

Transformation of economic activity into

digital media
Availability
Convenience

HOW DOES IT WORKS?

KEY DRIVERS
Technologi
cal Factors

Political
Factors

Social
Factors

Economic
Factors

Categories of E-Commerce
Business originating from...

Business

Business

Consumers

B2B

B2C

C2B

C2C

And selling
to...
Consumers

Business

to Business (B2B) refers to the full spectrum of

e-commerce that can occur between two organizations.
This includes purchasing and procurement, supplier
management, inventory management, channel
management, sales activities, payment management
&service and support.
Examples: FreeMarkets, Dell and General Electric

Business

to Consumer (B2C) refers to exchanges between

business and consumers, activities tracked are consumer
search, frequently asked questions and service and support.
Examples: Amazon, Yahoo and Charles Schwab & Co

Peer

to Peer (C2C) exchanges involve

transactions between and among consumers.
These can include third party involvement, as
in the case of the auction website Ebay.
Examples: Owners.com, Craiglist, Monster

Consumer

to Business (C2B) involves when

consumers band together to present
themselves as a buyer in group.
Example: www.planetfeedback.com

BENEFITS & LIMITATION

BENEFITS
Org

Consumer

Acc to
internationa
l
marketplac
e

24/7 access

LIMITATIONS
Society

Enable
more
flexible
working
place

Operation
More
cost savings choices

Connects
people

Mass
Communica
tion

Improve
delivery
process

Facilitate
delivery of
public
services

Enable to
reduce
Inventories

An
environmen
t
competition

Org

Consumer

Society

Insufficient
system
security

Cost to
access to
the internet

Breakdown
in human
interaction

Facing
increasing
competition

Lack of
security of
the data

Social
division

Rapid
evolving of
technology

Physical
contact are
replaced by
technology
process

MRP
Material Requirements
Planning
is a production planning and inventory
control system used to
manage
ADVANTAGES
DISADVANTAGES
manufacturing
processes.
Reduced
inventory with fewer
Rely on accurate inputs
(none)
shortages
Aim
: to achieve sufficient level of inventory
Reduced Traffic Cost

Requires a lot of time

Reduced Obsolescence

Costly & consuming

Reduced overtime
Enhance customer service
Reduced purchasing Cost

OBJECTIVES
Ensure materials are
available for production and
products are available for
delivery to customers.

Maintain the lowest

possible material and
product levels in store

Plan manufacturing
activities, delivery
schedules and purchasing
activities.

FUNCTIONS
The basic function of MRP system
includes inventory control, bill of
material processing and elementary
scheduling.

MRP helps organizations to maintain

low inventory levels. It is used to
plan manufacturing, purchasing and
delivering activities

MRP II
Manufacturing Resources
Planning II Involve the other

function of organization in manufacturing

production
Eg : Human relations, finance, marketing etc.
It makes
the organization toDISADVANTAGES
concentrate on
ADVANTAGES
theinventories
better machine
capacity
planning
&
Better
control
Poor quality
information
labour
schedulling
Better
planning
& scheduling
its operation
Improve organizations cash
flow
Provide profitability info timely
& valid

DIFFERENCES
MRP

Purpose:

To help the
managers in
determine the
quantity & timing
of raw materials to
purchase

MRP II

Concern with material

Purpose:

To help the
managers with
other parts of the
manufacturing
process.

Integration of all aspect of manufacturing

production

WHAT?

ERP

is a type of financial
management and
accounting software
integrates information
concerning financial,
manufacturing, sales,
service, customer
relations management,
and other business
activities
impact revenue or
liabilities into a single

WHY?

NON-INTEGRATED
SYSTEM

INTEGRATED
SYSTEM

An attractive
solution for many
large companies

Early systems tend to

be large, complicated,
and expensive.

Act as a planning
company backbone
for a companys
core business
process

Tend to create changes

in many business
process.

Able to share the data

from these processes with
other corporate software
system

COMPUTER-AIDED DESIGN (CAD)

/ COMPUTER-AIDED
MANUFACTURING (CAM)

 Specialized form of graphic

software
Provides interactive graphic
facilities
Assist engineering in:
* product and tool planning
* design, drafting

CAD

* process planning
* design revision
Use
of computer
systems and
* facilities
planning
software
perform function to manufacturing
engineering:
~ process planning
~ numerical control part
programming
to create a faster production
process and components and

CAM

Do you know?

Some computer
systems perform both
CAD/CAM, so term of
CAD/CAM is used to
Indicate the integration of
the two into one system.

How Does It Work?

ARCHITECTURE
ARCHITECTURE
CAD
CADsoftware
softwareis
isused
usedto
todesign
design
2D
2Dfloor
floorplan
planand
and3D
3Dschematic
schematic
of
ofhouses,
houses,office
officebuilding
buildingand
and
other
othercommercial
commercialstructures.
structures.

AUTOMOTIVE
AUTOMOTIVE
CAD
CADwill
willhelp
helpto
tocreate
create
prototypes
prototypesof
ofone
onebody
bodystyles
styles
and
andto
todesign
designauto
auto
components.
components.


FASHION
FASHION
The
Theclothing
clothingmanufactures
manufacturescan
can
determine
determinethe
themost
mostefficient
efficient
cut
cutof
offabrics
fabricsand
andcan
canadjust
adjust
the
thescale
scaleof
ofthe
thepattern
patternfor
for
different
differentsize.
size.

Process of CAD/CAM
The design
A designer use

specification are

CAD software to

downloaded to the

make an exact

computer (CAM

model of the

computer) that

object that will

controls the

be manufactured

manufacturing
machine

The computer
controls the
machine which
makes the
product

Benefits & Limitations

> the correction can be

made
easily
> time and cost saving
> increased productivity
and
quality
> can be used to
facilitate
mass customization

> High cost

> software complexity

DEFINITION
Branch of

Involved with

science and

robots design,

engineering

manufacture,

dealing with

application,

the study of

and structural

robots

disposition

Related to

The repetitive

electronics,

tasks are

mechanics,

delegated to

and software

machines

PRO

CONS

More efficient in
manufacturing

Lack in expertise
in operation of
robots

High quality of
product

High cost

Financial savings

Safety of humans
in danger with
presence of
robots
Incorporating

Increase
workplace safety

industrial robots
does not
guarantee results
in ROI

PARETO ANALYSIS

Pareto Principles

20
%

causes
work
results

When analyzing data

about the frequency of
problems or causes in
a process.

When to use it?

When there are many problems
or causes and you want to
focus on the most significant.

How to use Pareto Analysis

Step 1

Identify and List Problems

Step 2

Identify the Root Cause of Each Problem

Step 3

Score Problems

Step
4

Ste
p5
Ste
p6

Group Problems Together By Root Cause

Add up the Scores for Each Group
Take Action

Advantages of Pareto
Analysis

Organizational
efficiency

Improved
decision
making

Enhanced
problem
solving skills

Easy to make
but difficult to
troubleshoot

Multiple
Pareto chart
maybe needed

Qualitative
data VS
quantitative
data

Disadvantages
of Pareto
Analysis

Conclusion
Pareto Analysis is a
simple technique for
prioritizing problemsolving work so that
the first piece of work
you do resolved the
greatest number of
problems.