Use of Target Costing methodology in the construction of wood-aluminium windows — case study

Potkány, Marek; Krajčírová, Lucia; Stasiak-Betlejewska, Renata

doi:10.2478/emj-2021-0037

Cited by 4 publications

(4 citation statements)

References 23 publications

(32 reference statements)

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“…The database comprises a system of calculation and the budgeting of processes. This approach influences demand [54]. Part of innovation in processes is a quick response to changes: agile management, in the international market; international business collaboration, in the scientific field; and innovation management, in the environmental field and green management.…”

Section: Discussionmentioning

confidence: 99%

“…Sustainable manufacturing has evolved from theory- The first step is using digitalization, which makes documentation and evidence easier in each process. Potkány et al (2012) wrote that the database of information on the processes creates the basis for performance management and the fulfillment of strategic goals. The database comprises a system of calculation and the budgeting of processes.…”

Section: Discussionmentioning

confidence: 99%

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The Synergy Model of Quality Tools and Methods and Its Influence on Process Performance and Improvement

Wittenberger,

Teplická

2024

Applied Sciences

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Implementing quality tools and methods creates a basic foundation for innovations, sustainability, optimization, and competitiveness in the era of Industry 4.0 and Quality 4.0. This paper aimed to investigate the use of quality tools and methods in the 24 divisions of a mother manufacturing company without the influence of external factors such as geographical location (America, Africa, Asia, and Europe). It was important for the mother manufacturing company to implement a uniform process standard for innovation and performance. Research methods focused on using the Kanban card, Ishikawa diagram, affinity diagram, Flowchart, 5S, OPL, layout, and Pareto analysis. It was determined in this research that the synergy (combination) of quality tools and methods in divisions improves the process performance. This hypothesis was confirmed by the results of implementing quality tools in processes within divisions. A top result was the new innovative model of synergy of the quality tools and methods for divisions of the parent company thus filling a gap in the scientific field. This model created the basis for the uniform process standard in all divisions. The results brought improvements in the processes such as material input inspection, spare parts production, production process, and product packaging. This model could be a proactive instrument for process innovation.

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Section: Discussionmentioning

confidence: 99%

Section: Discussionmentioning

confidence: 99%

The Synergy Model of Quality Tools and Methods and Its Influence on Process Performance and Improvement

Wittenberger,

Teplická

2024

Applied Sciences

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“…Further research could focus on developing reactiveproactive integration strategies, which could result in smaller costs while ensuring successful production plans. Cost considerations are crucial, but it is essential not to sacrifice quality (Potkány et al, 2021;Stentoft et al, 2021).…”

Section: Introducing Backup Valves and Pipes For Eachmentioning

confidence: 99%

Proactive Manufacturing Strategy for Managing the Multiproduct Production Plan

Widiatmaka,

Cahyo

2024

JRSI

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The case study focuses on a multi-product company in Indonesia that aims to develop a proactive manufacturing strategy to tackle production disruptions caused by process uncertainty. Data from 30 periods are analyzed to evaluate the company's weekly production plan performance, revealing consistent quantity fulfillment but significant discrepancies in the types of products produced compared to the plan. Process uncertainty, especially regarding quality, leads to disruptions such as uneven and inadequate material supplies. Statistical Process Control (SPC) tools, like Pareto analysis, are used to identify priority quality issues, forming the basis for Fault Tree Analysis (FTA) to trace root causes and determine intervention points. Each machine's limited set of valves and pipes poses challenges for thorough cleaning during downtime and quality management outside working hours. Introducing backup valves and pipes per machine can mitigate these issues and improve production efficiency. Companies can implement procurement strategies for pipes and valves to prevent dirty prints in the primary process, ensuring smooth material supply and minimizing disruptions. Although actual production plan achievement hasn't reached 100%, this strategy has the potential to increase product sales by 3.31% by reducing the rejection ratio of dirty prints. Ultimately, proactive procurement of spare pipes and valves is expected to increase production efficiency by 4%, indicating enhanced production schedule stability.

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“…Companies are required to modify their attitudes about managing and operating a business in order to thrive and be able to compete in the business sector (Helms et al, 2005). Businesses that wish to grow or survive must be able to generate a high volume of high-quality products (Ax et al, 2008;Woods et al, 2012;Bock and Pütz, 2017;Potkány et al, 2021;Samogorodskaya et al, 2020). Despite the fact that the manufacturing process operates smoothly, the expenses incurred by the firm must be carefully controlled.…”

Section: Introductionmentioning

confidence: 99%

The Impact of Applying the Target Cost Approach on Products' Structure (Products Pricing, Development and Quality)

Masadeh¹,

Jrairah²,

Almasria³

2023

J. Professional Business Review

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Purpose: This study aimed to examine the effect of applying the target cost approach on product structure in industrial public shareholding companies in Jordan. Theoretical framework: The purpose of applying target cost approach on products' structure (products pricing, development and quality) and it is ability to reduce costs and improvements that can be obtained in the process of applying target cost approach. Numerous research related to applying target cost approach have been conducted, with the majority focusing on large companies. However, Jordanian industrial companies have limitations compared to large companies. Repairability is considered for cost optimization. Design/methodology/approach: The study uses the analytical approach through the study tool (Questionnaire). The study population consisted of Jordanian industrial companies, which reached (56) companies in 2022, according to the monthly statistical periodical of the Amman Stock Exchange (ASE). A sample of (42) companies was selected, and the questionnaire was distributed to (The Financial Manager, Production Manager, Sales Manager, and Accountant) for each company. The number of questionnaires approved for statistical analysis was (130), representing (77%) of the distributed questionnaires. This study uses different tests to analyze the data and extract results related to the statistical methods, i.e., the descriptive statistic, Cronbach's Alpha Equation, Pearson's Correlation Coefficient, and Simple Linear Regression Analysis. Findings: The study found that there is a strong relationship between the target cost approach and the product structure, with the existence of a statistically-significant effect, whereas the correlation coefficient value reached (0.808); thus, the target cost approach contributes to developing products and improving profitability through focusing on the analysis process of the possibilities of product success, before allocating the productive resources thereof. It has also contributed to reducing the cost during the production stages from its beginning while maintaining the products' quality, and it also leads to increasing sales volume through the pricing mechanism based on the target cost. Through the answers of the study sample individuals, it is pointed out that the arithmetic mean of the target cost approach is high, as it reached (3.77) and the standard deviation is (0.57), as well as the arithmetic means of the products' structure is high, as the pricing element came in the first class, with arithmetic means of (3.86) and standard deviation of (0.51), then the development element came in the second class, with arithmetic means of (3.78) and standard deviation of (0.58), whereas the quality element came in the third-class, with arithmetic means of (3.75) and standard deviation of (0.53). The results of the regression analysis also indicate that there is a statistically significant effect of the target cost approach on the quality of products, with (R²) (46.3%) which represents the proportion of explanation in the variance of the dependent variable. The findings of the study highlighted that there is a statistically-significant effect of the target cost approach in product development with (R²) with (37.5%) which indicates that the target cost explains (37.5%) of the difference in the product development. The results also indicate that there is a statistically significant effect of the target cost approach in product pricing with R) value indicating a high-strength correlation between the target cost approach and product pricing, which is (0.812). Research Practical implications: It is necessary to pay attention to qualifying workers by developing programs that deal profoundly with the approachs and modern systems of costs, such as the target cost system and the value chain as these approachs and accounting systems will be intensively adopted in the future for their outstanding role in developing product performance, Pricing and improving its quality. Originality/value: The study recommended that it is necessary to develop successful products and price them based on the target cost by balancing the company's ability and customers' needs, as well as using methods that lead to consistency and harmony between products' quality and customers' expectations. The study also recommended focusing on qualifying workers by developing programs that profoundly tackle the approaches and modern systems of costs, such as the target costing system

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Use of Target Costing methodology in the construction of wood-aluminium windows — case study

Cited by 4 publications

References 23 publications

The Synergy Model of Quality Tools and Methods and Its Influence on Process Performance and Improvement

The Synergy Model of Quality Tools and Methods and Its Influence on Process Performance and Improvement

Proactive Manufacturing Strategy for Managing the Multiproduct Production Plan

The Impact of Applying the Target Cost Approach on Products' Structure (Products Pricing, Development and Quality)

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