Management Accounting and the Cost of Quality
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Speaker : GARY COKINS
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When : Tuesday, June 18, 2024
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Time : 12: 00 PM EST
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Gary Cokins is an internationally recognized expert, speaker, and author in advanced cost management and performance improvement systems. He is the founder of Analytics-Based Performance Management, an advisory firm located in Cary, North Carolina. Gary received a BS degree with honors in Industrial Engineering/Operations Research from Cornell University in 1971. He received his MBA 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. 1992 Gary headed the National Cost Management Consulting Services for Electronic Data Systems (EDS) now part of HP. From 1997 until 2012 Gary was in business development with SAS, a leading provider of enterprise performance management and business analytics and intelligence software.
His two most recent books are Performance Management: Finding the Missing Pieces to Close the Intelligence Gap (ISBN 0-471-57690-5) and Performance Management: Integrating Strategy Execution, Methodologies, Risk, and Analytics (ISBN 978-0-470-44998-1). His most recent book co-authored with Larry Maisel is Predictive Business Analytics (ISBN 978-1-118-17556-9) published by John Wiley & Sons.
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).
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 on 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.
The presenter is a contributing author to the American Society for Quality’s book titled “Principles of Quality Cost” at this link: https://asq.org/quality-press/display-item?item=H1438
Areas Covered
- 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 include 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.
Course Level - Basic/Fundamental
Who Should Attend
- 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
Why Should You Attend
Many organizations struggle answering these types of questions:
- Do we know how to measure our cost of quality (COQ)?
- If we did measure our cost of quality, what decisions and actions would we take with the COQ information?
- How might we integrate cost of quality reporting with our other total quality management information (e.g., ISO 9000)?
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$160.00
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