Management Accounting and the Cost of Quality (COQ)
Gary Cokins Overview:
Managing quality is an imperative for any organization to remain competitive. Measurements of quality are essential, however supplementing that information with financial information further adds to success in managing quality.
Ultimately the language of money is what executives and managers rely on to make better decisions.
Unfortunately, most financial reporting neglects to report quality information such as the costs of quality (COQ).
Why you should Attend:
In this presentation the basics of management accounting will be described including measuring profits and costs of products, standard service-lines, distribution channels, and customers. The presentation will then expand on how this basic information can be leveraged to report and display how end-to-end business processes can be reported as prevention, appraisal, internal failure, and external failure. These are the COQ’s components to report the costs of conformance and costs of nonconformance. Each of the four can be decomposed into elements for each of them.
The presentation will describe how the lean management community applies lean accounting principles with value stream maps to aid in focusing waste reduction and throughput cycle time reduction. Attendees to this course will feel like they have added being a consultant to their set of skills.
Areas Covered in the Session:
How external statutory compliance financial reporting for government regulatory agencies and the investment community is different from internal management accounting for insights to make better decisions.
The fundamentals to calculating costs including complying with costing’s causality principle – having cause-and-effect relationships between incurred expenses (e.g., salaries, wages, supplies) and the output costs (e.g., product costs) that consume the expenses.
How cost "attributes" (e.g., the 4 COQ classifications; value-add versus nonvalue-add) can be attached to costs providing “the color of money”.
How lean accounting leverages management accounting.
Barriers and obstacles that prevent CFOs and accountants from reporting COQ.
Who Will Benefit:
- CxOs
- CFOs
- Financial officers and controllers
- Managerial and cost accountants
- Financial and business analysts
- Budget managers
- Strategic planners
- Marketing and sales managers
- Supply chain analysts
- Risk managers
- CIO and information technology staff
- Board of Directors
Speaker Profile
Gary Cokins Gary Cokins is an internationally recognized expert, speaker, and author in enterprise and corporate performance management improvement methods and business analytics. He is the founder of Analytics-Based Performance Management, an advisory firm located in Cary, North Carolina at www.garycokins.com . Gary received a BS degree with honors in Industrial Engineering/Operations Research from Cornell University in 1971. He received his MBA with honors from Northwestern University’s Kellogg School of Management in 1974.
Gary began his career as a strategic planner with FMC’s Link-Belt Division and then served as Financial Controller and Operations Manager. In 1981 Gary began his management consulting career first with Deloitte consulting, and then in 1988 with KPMG consulting. In 1992 Gary headed the National Cost Management Consulting Services for Electronic Data Systems (EDS) now part of HP. From 1997until 2013 Gary was a Principal Consultant with SAS, a leading provider of business analytics software.
His two most recent books are Performance Management: Integrating Strategy Execution, Methodologies, Risk, and Analytics, and Predictive Business Analytics. His books are published by John Wiley & Sons.
Gary regularly presents at conferences for the AICPA and state CPA societies. He is certified CPIM with The Association of Supply Chain Management (ASCM/ APICS). He served as the part time Executive in Residence for the Institute for Management Accountants (IMA).