An analytical study of the effects of the manufacturing environment on the selection of cost systems Appropriate for application under the lean production policy (field study)

shaheen, mohamed 


Introduction: The main objective of implementing the in-house manufacturing policy is to eliminate all forms of loss in the various operations of the company and to increase the operational efficiency of the plant. The benefits of implementing the guiding policy can be achieved initially in the form of a range of operational improvements, Product improvement, timely delivery, and increased customer satisfaction. In time these operational improvements should be translated into eliminating the losses in operations to lower costs, increase cash flow and increase revenue. In fact, the continued implementation of the guiding policy of manufacturing in the company to bear fruit is a difficult issue, and a group of research indicates that the proportion of approaching the maximum of 10% of the companies that started the implementation of this policy, has continued to implement until the full results achieved planned Whether financial or non-financial, so companies may take long periods of time to become rooted in the thought of rationalization and become the organizational values inherent in them. Perhaps one of the most important reasons that lead companies to abandon the implementation of the policy of manufacturing guidance is not to continue the availability of support from senior management, because the proposal to implement the policy of rationalization within the company stems from the executive managers working in the company and need to apply a set of investments to train Employees and increase their operational efficiency. Therefore, this support may be lost if the management does not feel that there is positive financial returns within a certain period of time. At the same time, the use of the cost-measurement approach on the basis of value paths contributed to the presentation of a set of reports that contributed to demonstrating the impact of operational improvements introduced during the implementation of the rationalization approach in the manufacturing process. They concluded that the use of the cost- Helps to visualize these improvements throughout the entire process. The focus of this research will be the study of the impacts of the guiding manufacturing environment and its impact on the selection of practices and accounting systems and the appropriate costs of application under this environment, the variables related to this environment, and the relationship of the regression relationship between these variables and the cost systems. Research problem: The main problem of this research is the lack of clarity of the relationship between the variables of the industry-leading manufacturing environment on the one hand and the cost accounting systems that are used and compatible with the environment on the other. The application of the philosophy of rationalization to the manufacturing processes of the company, accompanied by access to many competitive advantages that are characterized by diversity and the size of competitive advantages granted by the application of rationalization in companies, but less than 10% of companies operating in the United States and Britain, which has begun The implementation of the Master Manufacturing Program has been able to sustain the implementation of the program for a long and sufficient period to show the significant financial improvements associated with the operation, while the programs have stopped in more than 90% of these companies before the completion of the implementation of the objectives of the program clearly. Thus, the main question raised during this research is: What is the relationship between the manufacturing environment guided by its multiple variables and the quality of the accounting practices and cost systems selected and applied to support the implementation of this policy and help to provide information that makes operational improvements visible and financially stable that sustain the support and support of senior management to implement this policy? In order to answer this question properly, it is possible to divide this main question into a set of the following sub-questions: 1. What are the variables and factors that are related to the implementation of the manufacturing environment guiding the internal manufacturing processes in companies? 2. How can the impact of these variables be measured on the choice of accounting practices and cost systems being applied in companies? 3. What is the relationship of the regression relationship to be prepared to link the manufacturing environment variables in the companies with the quality of the accounting practices and the applicable cost systems for this environment? Therefore, this study seeks to explore the factors that may affect the selection of the appropriate cost accounting system for application during the implementation of the rationalization program. This is because one of the main reasons why companies failed to implement rationalization programs lies in the inability of conventional cost systems to track improvements that occur. In the production process, understanding what is the most cost-effective accounting system in a rationalization-based manufacturing environment will have many advantages over the continuation of companies and convince the management to complete the program until the end of the program. research importance: The importance of this research is based on the following considerations: 1. The main importance of this study is to provide a better understanding of the correlation between the choice of cost accounting systems and the different accounting practices suitable for use under manual manufacturing, and the variables related to the manufacturing environment on the other, it helps them maintain a sufficiently long-term manufacturing program that can reap the financial benefits of implementing the program. 2. The success of implementing the guiding policy of production in the Egyptian industrial companies clearly requires a permanent change in the organizational culture of these companies. This change requires the harmonization of accounting practices, especially the applicable cost systems with the targeted production policy within the companies. The guide plays an important role in increasing the awareness of corporate executives about the existence of this approach and the advantages that companies obtain when applying. 3. The selection of appropriate cost systems for application with the CSP helps to provide the company's staff with the information produced by cost accounting systems to make strategic decisions to help achieve an adequate return on equity investments. Research Objectives: The main objective of this research is to undertake a model of regression analysis to explore the relationship between the different variables related to the manufacturing environment of information technology used, product diversity, value of incremental costs and their proportion in cost structure, size of competition, guiding policy, Accounting practices and cost systems to be applied under rationalization. This model will be built on a survey conducted among a sample of participants representing a group of executive managers and accounting specialists in various industrial companies. Results and recommendations: The aim of the regression analysis is to examine the relationship between the manufacturing environment and the accounting techniques appropriate to rationalization applied to manufacturing processes. A survey was conducted among a group of professional accountants in the industry. The main determinant of this study may be the lack of available data that helps And in a clear manner in identifying companies engaged in the thought of rationalization. The first research question included an inquiry about the relationship between the company's IT infrastructure and the set of accounting practices associated with rationalization. Several accounting studies and research have indicated a positive correlation between the level of technology used in companies and the extent to which these companies use and apply the cost accounting approach Based on activity in these companies. Thus, the conclusion on this point is that IT may be among the factors influencing the application and use of an activity-based accounting approach but is not considered as a factor influencing the adoption by companies of a set of accounting practices consistent with rationalization. The second question is to inquire about the relationship between the diversity of the production and sales range of the company and the set of accounting practices associated with rationalization. In this case, diversity is intended to vary in the overall sense of product quality, diversity in the volume of products produced or diversity in the quality of production lines used in the company. The Severman correlation coefficient noted that there was no intrinsic relationship between the diversity of accounting products and practices under rationalization, which was a surprising result, since the objective of accounting practices under rationalization supported high technology levels at high additional costs. The third research question included the question of the relationship between the number of competitors and the accounting practices associated with rationalization. This variable has been used in many studies which include examining the factors affecting the application of the activity-based costing input in companies. With regard to the fourth research question, which focused on the relationship between the ratio of incremental industrial costs and accounting practices under rationalization, additional costs undoubtedly play an important role in the transformation of companies towards the introduction of activity-based accounting for costs. In the end, the fifth research question, which examines the quality of the relationship between the application of production policy under rationalization and the quality of accounting practices under rationalization. Previous studies have indicated that the number of companies applied to the rationalization idea that applied to the introduction of accounting for costs on the basis of activity was higher than the number of companies Which abandoned the application of this entry. The results of this research study indicate that there is no significant correlation between the company's application of the guiding production policy and the accounting practices used under rationalization. This research study failed to show any significant correlation between the specific manufacturing environment variables and the accounting practices used under rationalization. Therefore, the results of this study indicate that accounting practices under rationalization are still in their early stages. This would explain the fact that accounting studies Associated with rationalization in the future is aimed at the availability of a more rational research sample that helps to search for a substantial set of manufacturing environment variables and their impact on accounting practices used under rationalization. The results of this research may be an indication that respondents in the study did not have a full understanding of the quality of accounting practices under rationalization or that the companies they employ use and employ a range of traditional accounting practices.

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Keywords manufacturing environment - cost systems - lean production policy
Issue Date Jul-2018
Publisher مجلة الفكر المحاسبي ، قسم المحاسبة والمراجعة جامعة عين شمس
Journal مجلة الفكر المحاسبي ، قسم المحاسبة والمراجعة جامعة عين شمس ، العدد الثاني، السنة الثانية والعشرون ، يوليو 2018. 

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