Article: Applying Matrixed Pareto Analysis With Activity Based Costing For Operations And Cost Management Journal: Journal of Business and Management (JBM) 2005 Vol.11 No.1 pp.73 - 88 Abstract: Management decisions made in operations planning and control determine what goods will be produced, when, and in what quantities; these determinations, in turn, shape other functional areas, including marketing, purchasing, receiving, storing, pricing, record keeping, inventory control, accounting, and other financial activities. Production management systems have long been effective at ensuring optimal efficiency in the flow of raw materials and finished goods through the production cycle. However, the accelerated proliferation of product varieties and product mixes that include both high volume and low volume specialty products has made it difficult for management to establish effective cost management and pricing policies. This paper expands traditional Pareto Analysis, a proven tool used in production and inventory control systems, by incorporating opposed metrics to create an effective low-cost tool to disaggregate product mixes and more accurately identify and control production costs. Inderscience Publishers - linking academia, business and industry through research

Title: Applying Matrixed Pareto Analysis With Activity Based Costing For Operations And Cost Management

Authors: Eli Berniker; David E. McNabb

Addresses: Author address listing can be found in the "About the Authors" section at the end of the article.

Abstract: Management decisions made in operations planning and control determine what goods will be produced, when, and in what quantities; these determinations, in turn, shape other functional areas, including marketing, purchasing, receiving, storing, pricing, record keeping, inventory control, accounting, and other financial activities. Production management systems have long been effective at ensuring optimal efficiency in the flow of raw materials and finished goods through the production cycle. However, the accelerated proliferation of product varieties and product mixes that include both high volume and low volume specialty products has made it difficult for management to establish effective cost management and pricing policies. This paper expands traditional Pareto Analysis, a proven tool used in production and inventory control systems, by incorporating opposed metrics to create an effective low-cost tool to disaggregate product mixes and more accurately identify and control production costs.

Keywords: Pareto analysis; activity-based costing; operations management; cost management; production management systems.

DOI: 10.1504/JBM.2005.141131

Journal of Business and Management, 2005 Vol.11 No.1, pp.73 - 88

Published online: 05 Sep 2024 *

Title: Applying Matrixed Pareto Analysis With Activity Based Costing For Operations And Cost Management

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