| page 2/Management Principles Information on the Internet previous page IV. Project Management Principles. Management accountants have long evaluated the value (return) of potential long-term projects (capital projects), e.g. by using net present value (NPV) analytical techniques. The websites identified in this section, related to project management, are not websites that deal with such capital projects and NPV analysis. Another article found at the Management Accounting Information Center (MAIC) “Planning, Budgeting, and Forecasting-related Information on the Internet”, linked to from the MAIC front page, identifies capital projects and NPV analysis websites. Identified in this article are those websites that focus more on good practices in managing projects. The management accountant can benefit, it seems to me, by better understanding of likely project management practices in carrying out the above mentioned capital projects (those associated with net present value analysis). The better the management accountant captures all the project’s resource (cash) changes needed for NPV analysis, by better understanding the project, the better the analysis will be. Another benefit of a management accountant’s better understanding of project management principles is to be able to better account for the transactions related to the project, and provide better financial analysis of the project, based on these transactions. Max Wideman maintains a site, www.maxwideman.com/index.htm, which provides project management principles. A good way to gain access to these principles is to click to the Site Map, where topics are listed. A site search system is also available. At this British site, www.projectsmart.co.uk/index.html, maintained by Project Smart, you can gain access to articles and reports that focus on improving project management performance. Searching the site on the term “costs” returned 53 hits. This site, www.mapnp.org/library/plan_dec/project/project.htm, maintained by Carter McNamara, which will link you to articles and websites providing information on project management. An online project management journal “PROJECTMAGAZINE” is at www.projectmagazine.com. Searching this site can lead you to articles dealing with various project management topics. Searching on “costs” returned 209 hits. Niwot Ridge Resources maintains a site, www.niwotridge.com/Resouces/PM-SWEResources/PMResources.htm, with dozens of links to sites with project management-related information. These links should lead you to a lot of information on doing project management. Mind Tools has a site, www.mindtools.com/pages/main/newMN_PPM.htm, at which you can gain access to basic information on doing project management. Tutorials are provided on such topics as Gantt charts, critical path analyst, PERT (Program Evaluation and Review Technique), and other topics relevant to project management. The Defense Department maintains a site, www.acq.osd.mil/pm, at which you can learn about the use of a project management system called “Earned Value Management (EVM)”. The contractor use of Earned Value Management is encouraged by the Defense Department. Earned Value Management focuses on the use of actual costs of various activities composing a project, and comparing these costs to a measurement called “earned value”, which is a metric related to activity completion (rather than planned spend). Comparing actual costs to activity completion (rather than planned spend, or planned costs) provides more accuracy and better decision-making information, according to EMV proponents. V. Lean Management Principles. Lean management principles and concepts applied to operational processes are being applied in various organizations. The management accountant should understand lean management procedures, whether they are being used in the accountant’s organization, or are being considered. An important consideration in adopting new procedures, whether lean-related or other, is the profit benefit the procedure will bring. The management accountant needs to proactively contribute to discussions on profit benefits. And again, as in other management principles discussed elsewhere in this article, the accountant needs to understand the processes being used to make good decisions on how to account for the transactions related to the processes. The Mid-America Manufacturing Technology Center (MAMTC), maintains a website, www.mamtc.com/lean/index.asp, that provides information on lean manufacturing. Many lean-related concepts such as pull/Kanban systems, workplace organization, and “takt” time are explained. Many questions about lean manufacturing are answered. Links to other sites with lean-related information are provided. NWLEAN has a site, www.nwlean.net/home.htm, at which supporting information and tools for understanding and using lean concepts and principles are accessible. Overviews are provided on lean use in various environments. Articles and various tools to access lean and lean-related applications are available. This site, www.gemba.com/about.cfm, maintained by Gemba Research, has examples of how lean concepts have been applied and the results in various environments. This site is good at providing details on applying lean and kaizen principles to various processes. At the Lean Enterprise Institute website, www.lean.org, you can gain access (registration, which is free, is required) to a library of articles, surveys, and other information related to lean use and concepts. Information related to lean accounting is available. A set of links is provided. This link, www.aicpa.org/PUBS/jofa/jul2004/knoll.htm, takes you to an article, appearing in the “Journal of Accountancy”, and written by Karen Kroll, which compares accounting using a standard costs to one using a lean approach. A comparison on financial statements using both approaches (standard costs and lean) demonstrates well the resulting reporting difference. At an American Institute of Certified Public Accountants site, www.aicpa.org/pubs/cpaltr/feb2002/supps/audit1.htm, is an article, by John Stancil, that discusses the accounting function when thinking about lean concepts. IndustryWeek.com has an article at this site, www.industryweek.com/CurrentArticles/ASP/articles.asp?ArticleId=1320, on considering accounting practices when thinking about lean concepts. George Taninecz wrote the article. VI. Quality Management Principles. It seems to me, management accountants should understand six sigma quality-oriented management principles because six sigma involves a statistical analysis of processes, including, in some cases, the costs of processes. (Another Management Accounting Information Center article, “Quantitative Analysis Information on the Internet”, identifies websites that can support the reader in applying statistical analysis to various data, such as process data.) Because the management accountant may be involved in the cost and benefit analysis related to quality-oriented initiatives within an organization, understanding quality management principles would be useful. Websites identified in this section provide information on quality management principles. Professor James Martin has an article at this website, www.maaw.info/SixSigmaSummary.htm, which appears to be the basis of a lecture on six sigma methodology. A site, www.curiouscat.net/library/sixsigmalibrary.cfm, maintained by curiouscat.com, has links to about 40 articles, dealing with six sigma concepts, principles, and use. Some articles relate six sigma results to economic performance. At the Juran Institute website, www.juran.com, you can gain access to articles on quality. Several articles written by Joseph Juran are available for reading. This link, web.mit.edu/tdqm/www/index.shtml, takes you to a site, maintained by the Massachusetts Institute of Technology’s Total Data Quality Management Program (TDQMP). One focus of the TDQMP is the importance of data and information quality for organizational effectiveness. Although TDQMP’S scope is much greater than accounting data, searching the TDQMP site using “internal control” got 4 hits, and using “accounting”, 31 hits. Links are provided to other data and information quality sites. plese click here to go to the next page |