Middlebrook, BillDegraeve, Scott A.2024-06-042024-06-041987-04Degraeve, S.A. (1987). Management accounting implications of the new manufacturing environment (Unpublished thesis). Southwest Texas State University, San Marcos, Texas.https://hdl.handle.net/10877/18859The United States has lost its position as world leader in manufacturing output. The cost implications of deteriorating productivity and the phenomenal productivity gains made by the Japanese over the past fifteen years have contributed to the transfer of many U.S. industries to off-shore manufacturers. Much of the Japanese success can be attributed to a concept known as Just-In-Time (JIT) manufacturing. This concept focuses on simplifying process flows, with a drive towards total waste elimination. The Japanese believe that waste is a result of operational inefficiencies which can be eliminated if the root cause of the inefficiency is made visible. The benefits to be derived from the implementation of JIT techniques are numerous, and survey information available on U.S. manufacturers indicate significant improvements could be made if JIT techniques were employed. The operational focus of U.S. managers has not been on those elements which are professed in the JIT philosophy. The accounting community must share in the blame for this, as current cost information provided to management influences them to focus on activities which do not offer the greatest opportunity for improving competitiveness. Survey information reveals that there is a significant level of dissatisfaction with cost information which is currently provided, both from the perspective of the users and the preparers of cost information. This can be attributed to the lack of adjustments made to cost accounting practices in maintaining consistency with the changing trends in the new manufacturing environment. Technological advancements have caused a shift in the cost structure of manufactured products, reflecting reductions in direct labor and increases in overhead costs. However, much of the basis for current cost accounting still focuses on direct labor, leading managers to continue their attack on this cost, and missing opportunities for greater returns. The current measurement systems which are in, place in many manufacturing organizations lead individual managers to focus efforts on activities which improve their performance, but may be done so at a greater expense to the corporation as whole. Integrated measurement systems must be developed which allow for the measurement of individual performance, while at the same time motivating total team performance towards the maximization of return on investment (ROI) for the corporation as a whole. This paper addresses the many aspects of operational activity for which improved information is required to enhance management decision making. It identifies areas in which weaknesses exist, and makes recommendations for needed changes. A survey 0£ the U.S. electronics industry indicates that some companies are beginning to make progress in successfully implementing some of the concepts that are described in the paper; however, these companies are few in number at this time. The conclusion which is drawn is that the management accountant's role must change from the basic scorekeeping function provided in the past, to one of an active participant in all aspects of operational decision making. To do this will require a broader understanding of all aspects of a manufacturing operation on the part of the management accountant, and the establishment of cost management systems which support the critical success factors identified by the corporation as a requirement for meeting their objectives.Text126 pages1 file (.pdf)enindustrial efficiencyindustrial managementjust-in-time systemsproduction managementmanagerial accountingThesis