Activity based costing model for inventory valuation
, Available Online, December, 2016
Vineet Chouhan, G. Soral and Bibhas Chandra PDF (288 K)
Abstract: Activity-Based-Model (ABC) is used for the purpose of significant improvement for overhead accounting systems by providing the best information required for managerial decision. This pa-per discusses implacability of ABC technique on inventory valuation as a management account-ing innovation. In order to prove the applicability of ABC for inventory control a material driven medium-sized and privately owned company from engineering (iron and steel) industry is select-ed and by analysis of its production process and its material dependency and use of indirect in-ventory, an ABC model is explored for better inventory control. The case revealed that the ne-cessity of ABC in the area of inventory control is significant. The company is not only able to increase its quality of decision but also it can significantly analyze its cost of direct material cost, valuation of direct material and use its implications for better decision making.
Keywords: Activity Based Costing (ABC), Inventory Valuation, Inventory, Inventory control, Traditional Costing, Decision making
An application of six sigma for SMEs: A case study
, Available Online, December, 2016
Prabhakar Kaushik and Sandeep Kumar PDF (288 K)
Abstract: Six Sigma is the concept of improving the quality by reducing process variations, making con-tinuous improvements, reducing defect rates and improving the processes. Initially, the concept of Six Sigma focused on defect reduction, cost reduction and value addition. Fundamentally the basic idea of Six Sigma is to improve the process-capability and making the process more relia-ble along with reducing wastes within industries. Evaluation the implication of applying Six Sigma over the small and medium-sized enterprises is the main purpose of this research work taking a particular case of automobile industries. In the present work, DMAIC methodology of Six Sigma is used to a small seat slider lock nut manufacturing unit to reduce the play issue in K2 seat slider lock in automobile units by reducing defects inherent in the process. After apply-ing Six Sigma methodology, it was found that manufacturing units could earn profits in terms of reducing the wastage as well as improving the quality standard of the product by controlling the play issue in seat slider lock nut mechanism. Result shows that with the application of Six Sig-ma, process, sigma level brought up to 5.53σ from 1.59σ by varying the seat slider lock nut di-mensions/size.
Keywords: Six sigma, Quality, Process improvements, Phases of implementation, Indian automobile sector, Quantitative tools
Reducing the nonconforming products by using the Six Sigma method: A case study of a polyes-ter short cut fiber manufacturing in Indonesia
, Available Online, November, 2016
Oky Syafwiratama, Mohammad Hamsal and Humiras Hardi Purba PDF (288 K)
Abstract: Polyester short cut fiber is a textile industry which is rarely explored or researched. This research explains the necessary steps of improvement using Six Sigma method to reduce the nonconform-ing products in a polyester short cut fiber manufacturing in Indonesia. An increased noncon-forming products in the shortcut fiber production process created some quality problems from January to May, 2015. Define, measure, analysis, improve, control (DMAIC) steps were im-plemented to determine root cause of the problems and to improve production process using sta-tistical approach. The results of Six Sigma improvement has indicated that the process capability was increased from 2.2 to 3.1 sigma, savings $18,394.2 USD per-month.
Keywords: Six Sigma, Nonconforming products, Polyester shortcut fiber, Process improvement, Quality
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