Remedial strategy for resolving cost mix
Basically, ABC is a remedial strategy for resolving cost mix changes through the implementations steps contained in it. The ABC program can identify the main elements of costs in an organization. Reflectively, this aspect is critical in the proactive costs assessments through classification of the costs to distribute them in line with the accurate focus.
Nevertheless, the cost brackets identified and classified should be placed on the premise of categories or elements rather than by the shallow organization or product function. For instance, maintenance, fixed, and definite but slightly flexible costs are but examples of the ideal ways of cost classification in the ABC program.
On the other hand, the ABC program offers an opportunity for the easy identification of the vital cost elements that demand attention and control planning in the product cost identity mix. From this, the cost pool strategy will give room for summation of the activity rate for each identified activity through application of planned driver.
Thus, a company may use this program simulation to carry out comparative costing to accurately track and monitor the flows in costs since the ABC simulation offers the application that can facilitate activity-based costing for the purpose of timely planning and business insight within the rationale of optimal performance. Thus, the ABC simulation offers a proactive tool for tracking uncertainty, variability and interdependence of costs and activities against available resources.
Why the balanced scorecard (BSC) is a necessity in Midal Company
Reflectively, a BSC system offers the opportunity for an organization to fill the vacuum that often exists between company actions and strategies adopted. At the same time, the system engages a multi faceted user board in planning for the immediate, midterm and long term strategies.
Also, the system has application for tracking feedback against progress of each strategy and records any changes in the dynamic business environment. Thus, the BSC system can be described as a necessary tool for system evaluation of the strategies in place against future focus in order to successfully translate the strategies into deliverable variables that can be quantified. In relation to Midal Company, the proposed BSC system will fasten efficiency and optimal productivity.
Applying the BSC system at Midal
When successfully implemented, the BSC system is likely to transform the Midal’s corporate plans into quantifiable action plans that can be tracked from one period to another. Thus, the current traditional approach to strategic planning in the company will be transformed into easily identifiable specific, actionable, measurable, time bound and realistic through the BSC system.
For instance, the BSC system facilitated complete transformation of the Geon Forex Capital into a very efficient company with tracking devises for measuring performance.
How BSC can be integrated in Midal Company
From the above reflection, the BSC system will facilitate scientific management of the company through effective planning and excellent execution of strategies into measurable results. The BSC system will facilitate rational decision making among the executive managers since they will be empowered to support their decisions with quantifiable and justifiable action plans in line with the main goal of quality performance and optimal service delivery.
Customer measurement is critical in planning for product design and delivery in a company. In the case of Midal Company, customer measurement will facilitate maintenance of customer preference since the company will be in a position to benchmark customer measurement results to provide up-to-date services.
Process management
Process management is central in a production process. It ensures that goods or services produced are of superior quality. Also, process management helps in identification of areas for improvement. This improves customers’ satisfaction. Process management consists of three processes these are, design, control and improvement.
Provision of quality goods and services is of essence in business. The process of developing quality products is a complex interrelationship of various attributes. It entails identification of customer requirements, identification technical requirements, relating the customer requirements to the technical requirements, evaluating competing products or services, evaluating technical requirements, developing targets, and determining the technical requirements to deploy in the remainder of the production/delivery process.
This process design is comprehensive since it takes in to account all necessary functions of process management. It improves the quality of goods and services produced.
Since inputs are critical in determining the quality of output, companies use special devises for quality assurance and control. These devices detect mistakes early and enable the company to correct. Other than checking inputs, the management also uses these devices during the entire production process.
Use of these devices in the entire production process helps in the detection of human or machine error, such as forgetfulness, misunderstanding, absentmindedness, delays, malfunctions, or errors in identification. This helps in correction of the errors early.
The final stage of process design is critical. It entails evaluation of the entire process with an aim of pointing out areas for improvement. Besides, during this stage the management can compare targets with outcome and note variances. Generally, performance management is critical in quality assurance, planning and implementation of different business management models.