In today's global and competitive economy, managers are challenged to provide high-quality goods and outstanding service at the lowest possible cost. Given the increasing pressure on the cost side, it is important for (future) managers to gain insight into the quality of cost information, and to understand how to measure and master costs.
The first part of this course will therefore focus on (i) cost measurement (cost types, cost behavior, inventory and asset accounting) and (ii) cost management (volume-based costing versus Activity Based Costing and Activity Based Management, target costing, identification of non-value-adding costs, etc.)
The second part addresses performance measurement and benchmarking. A framework for implementing an effective performance measurement system aimed at achieving 'world class' performance is presented. A selection of tools and techniques to measure different elements of performance, such as Lean Management, Value Stream Mapping, Work Measurement and Time Study Techniques will be illustrated by industry cases. To enable a comparison of an organization¿s performance with others, frameworks for organizational benchmarking (EFQM-Bladrige) and for operational benchmarking (Webscan) are discussed.
By the end of the course, students will have an understanding of the following issues:
- cost measurement techniques;
- cost management approaches;
- the different aspects of performance;
- design and implementation of an effective performance measurement system;
- use of measurement tools for standard times, time utilization and process indicators (eg lead-time);
- the benchmarking process and available benchmarking frameworks.
Prof. Dr. D. VAN GOUBERGEN