|
 Phase I
Needs Analysis. - Perform a Needs Analysis to determine status
of cost accounting and shop floor reporting. The Needs Analysis
includes a proposed Implementation.
Phase II Implementation. - Develop and implement
improved cost accounting metrics, enhanced shop floor reporting procedures
and/or document production procedures based on Needs Analysis.
Top Six Tasks Performed in Phase II
1. Basic tune-up of
existing cost accounting
2. Major tune-up
of existing estimating protocol
3. Overhaul
existing cost accounting
4. Enhance
daily shop floor reporting
5. Manufacturing/shop
floor software procedure documentation
6. Develop
and Implement an Economic Value Added (EVA) model
Typical
Considerations for Improving Cost Accounting Metrics
 Chart of Accounts
usage
Realized yield measurement
Overhead expense
categorization
Overhead rate allocation design
Cost of sales determination
Cost of manufacturing
determination
RM, WIP & FGDS inventory
valuation
Indirect expenses identification
& measurement
Identification, tracking &
measurement of Direct Labor (DL)
Identification, tracking &
measurement of Direct Material (DM)
Typical Questions for Enhancing Shop Floor Reporting
Who sets operator targets?
How are production operator
targets set?
Current status of operator
reporting?
Production operation
documentation?
Inventory levels and capacity?
Is there an accurate daily scrap
report?
Daily operator efficiency
reporting?
Optimum level for operator
reporting detail?
Management intervention feedback
loop status?
Shop
Floor Software Procedure Documentation Elements & Issues
Status of daily transactions in & out of
software system
Level of computer literacy & system training
among employees
Status of software use for RM, WIP & FGDS
inventory valuation
Status & usage of RFQ forms, formats,
sophistication, documentation
Identification/documentation of when/who does which
critical task
Deliverables
For Start-up businesses
Set up accounting processes and procedures
Create and customize a Chart of Accounts to closely
fit the new business entity
Create financial statements such as Balance Sheets
and Income Statements
Create the process and procedure of pulling
together the General Ledger from which to draw the financial statements
Provide on-site financial analysis of financial
statements and market opportunities
Set up procedure for recording accounting
transactions
Write Desktop Operating Procedures for accounting
process personnel
AR train how to record and match cash receipts
AP train how to match, pay and archive invoices;
train how to manage check-writing
Credit establish appropriate selection criteria
for issuing credit
Collections set up procedure to collect from
customers including how to handle complaints and refusals to pay
Payroll set up procedure to deal with forms 940
& 941 and other tax forms
Set up payroll timekeeping forms and how to match
to shop floor labor
Develop/execute a long-term financial plan,
including pro forma financial statements
Insurance set up and create a maintenance plan
for Workers Compensation, Property and Casualty coverage and Business
Liability insurance
Set up simple bookkeeping using either QuickBooks or PeachTree accounting software, whichever is
most appropriate
For
On-going concerns
Perform financial or operational tasks as needed to
solve immediate problems while creating and implementing long-term solutions
Reconstruct financial statements from canceled
checks and bank statements
Handle banking relations; negotiate credit line
with financial institution
Design a systematic way to deal with unsorted
accounting transactions
Improve cash flow by contacting vendors and
arranging an adequate repayment plan
Analyze selling transactions to determine actual
realized margin for each product line
Create a customized inventory management system
Perform financial analysis on pricing and costing
issues
Build financial pricing model
Create reasonable specifications for shop floor
reporting software
Train production operators how to report shop floor
activity
Link job estimates to actual job production
performance
Establish workable PO
system that fits the business entity
Write Policy & Procedure manual
Teach accounting personnel how to use accounting
software
Train accounting personnel how to follow accounting
and control procedures
|
