If you’re not Benchmarking your performance against your competitors, You’re just playing with yourself. -Al Paison Benchmarking provides competitive advantage to companies. It’s also a relevant topic for ACCA students and equips them with successful implementation of Benchmarking. Benchmarking is a vital management tool, that discovers the best practices behind the success of industry leaders in similar or different industries. The information collected from Benchmarked companies is then analyzed and used to compare and measure the performance of your company’s products, services and processes to identify and bridge the gaps in the areas, where improvements are needed. Thus enabling your company to attain competitive advantage. Prerequisite to Benchmarking A committed top management and its well-trained team is a prerequisite to successful implementation of Benchmarking Steps. It’s imperative to form a Benchmarking team. The initial task of this Benchmarking team will be to select com
By improving quality, companies will decrease expenses as well as increase Productivity and market share. -W. Edward Deming The purpose of writing this blog post is to equip the students with the basic concept of Management Accounting Role in the success of Total Quality Management (TQM), that focuses on customer satisfaction, and ensures continuous process improvement to provide defect free high quality and cost effective Products or services, through involvement of everybody in the organization. This helps in improving overall productivity and performance of the organization. How Management Accounting supports TQM? The Management Accounting is a systematic methodology that supports TQM in determining the cost of quality (COQ) through its evidence – based cost analysis and decision making. The guidelines for future cost effective activities are established on the basis of quality associated cost analysis of existing expenses. Why cost of quality is important (COQ)? As already descri