Slide 8.

Chapter 8
Management of operational
performance

Tom Groot and Frank Selto, Advanced Management Accounting, 1st Edition, © Pearson Education Limited 2013
Slide 8.2

Figure 8.1 BI’s production system

Tom Groot and Frank Selto, Advanced Management Accounting, 1st Edition, © Pearson Education Limited 2013
Slide 8.3

Figure 8.2 Bicycle Industries: graphic LP solution

Tom Groot and Frank Selto, Advanced Management Accounting, 1st Edition, © Pearson Education Limited 2013
Slide 8.4

Figure 8.3 LP model for Bicycle Industries’ production planning decision

Tom Groot and Frank Selto, Advanced Management Accounting, 1st Edition, © Pearson Education Limited 2013
Slide 8.5

Figure 8.4 (a) Answer report , (b) Limits report

Tom Groot and Frank Selto, Advanced Management Accounting, 1st Edition, © Pearson Education Limited 2013
Slide 8.6

Figure 8.5 Sensitivity report on Bicycle Industries production plan

Tom Groot and Frank Selto, Advanced Management Accounting, 1st Edition, © Pearson Education Limited 2013
Slide 8.7

Figure 8.6 Bicycle Industries: changes in the assembly constraint

Tom Groot and Frank Selto, Advanced Management Accounting, 1st Edition, © Pearson Education Limited 2013
Slide 8.8

Figure 8.7 Sensitivity report for a new contribution margin

Tom Groot and Frank Selto, Advanced Management Accounting, 1st Edition, © Pearson Education Limited 2013
Slide 8.9

Figure 8.8 Bicycle Industries, revised production system

Tom Groot and Frank Selto, Advanced Management Accounting, 1st Edition, © Pearson Education Limited 2013
Slide 8.10

Figure 8.9 Bicycle Industries’ revised production plan with sequential dependencies

Tom Groot and Frank Selto, Advanced Management Accounting, 1st Edition, © Pearson Education Limited 2013
Slide 8.11

Figure 8.10 Solution and sensitivity analysis

Tom Groot and Frank Selto, Advanced Management Accounting, 1st Edition, © Pearson Education Limited 2013
Slide 8.12

Figure 8.11 Total cost of quality

Tom Groot and Frank Selto, Advanced Management Accounting, 1st Edition, © Pearson Education Limited 2013
Slide 8.13

Figure 8.12 Total cost of quality revisited

Tom Groot and Frank Selto, Advanced Management Accounting, 1st Edition, © Pearson Education Limited 2013
Slide 8.14

Figure 8.13 Six Sigma conformance levels (Breyfogle III, 2003, p. 13)

Tom Groot and Frank Selto, Advanced Management Accounting, 1st Edition, © Pearson Education Limited 2013
Slide 8.15

Relationship between Sigma quality levels and ppm rates (Breyfogle III,
Figure 8.14
2003, p. 13)
Tom Groot and Frank Selto, Advanced Management Accounting, 1st Edition, © Pearson Education Limited 2013
Slide 8.16

Figure 8.15 Coffee Delight’s frequency chart, and x and R charts

Tom Groot and Frank Selto, Advanced Management Accounting, 1st Edition, © Pearson Education Limited 2013
Slide 8.17

Figure 8.16 The combined x and R charts with old and revised 3σ control levels

Tom Groot and Frank Selto, Advanced Management Accounting, 1st Edition, © Pearson Education Limited 2013
Slide 8.18

Figure 8.17 Different blending patterns in Supply chain performance

Tom Groot and Frank Selto, Advanced Management Accounting, 1st Edition, © Pearson Education Limited 2013