Supply chain costing and performance management

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