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School of Business | Department of Information and Service Economy | Logistics | 2011
Thesis number: 12508
Designing management accounting system to support Lean management in multiple supply chain strategy - Case Vaisala Oyj
|Title:||Designing management accounting system to support Lean management in multiple supply chain strategy - Case Vaisala Oyj|
|Year:||2011 Language: eng|
|Department:||Department of Information and Service Economy|
|Index terms:||logistiikka; logistics; toimitusketju; supply chain; kustannuslaskenta; cost accounting; johdon laskentatoimi; managerial accounting; strategia; strategy|
» hse_ethesis_12508.pdf size:2 MB (1900093)
|Key terms:||supply chain management; standard costing; full costing; absorption costing; management accounting; cost management; lean accounting; supply chain costing; lean management; activity-based costing; vaisala; multiple supply chain strategy; value chain costing|
Research problem presented is the lack of profitability information to support multiple supply chain strategy in the case company Vaisala Oyj. Vaisala is a producer of observation and measurement services and products for customers in meteorology, weather critical operations and controlled environments. A study made by Toivanen (2010) suggests that selected customer groups and segments of the case company can be divided into three different supply chain channels based on customer buying behavior.
Main objective of the study is to design management accounting system for the case company to support multiple supply chain framework suggested by Toivanen (2010). Study focuses on internal value chains that are part of company's multiple supply chain strategy. The designed management accounting system is further implemented for lean supply chain channel, which includes a large share of case company's product offering. A further objective is to link management accounting system with income statement to help decision makers understand differences between the two different presentations of profitability and performance.
Theoretical part consists of management accounting and supply chain management related literature. Additional focus is given to the theories related to lean supply chains, value stream costing, and the assignment of overhead costs. Data sources used in the empirical part consist of data analyses of information systems, informal meetings, and discussions with the managers and personnel. Study is a field study, in which a case study method is applied. Framework is developed to be used for building a management accounting system that supports multiple supply chain strategy of a company. Framework is called Value Stream Cost Assignment Model, and it is used to design management accounting system for the case company. Management accounting system is further implemented for lean supply chain by using adapted two-stage cost assignment model and performance measurement model for lean supply chain.
Findings from the case show that the framework can be used to understand the supply chain related costs and profits better within the company. A practical implementation of the management accounting system helped to identify critical factors within the company that affect to the profitability of lean supply chain. Study suggests that using the framework to design management accounting system around supply chains enables company to better understand the linkage of operational activities and customer expectations within the company's supply chain.
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