Yokohama's Management System

1 – What are the three major subsystems of yokohama's cost management system and how do they interrelate ?

The cost management system contain three major subsystems : cost reduction, cost accounting and performance evaluation.

• Cost reduction : It is made to understand how to reduce costs throughout the production process ( in order to reduce the different costs ).

First, we need to identify the differents targets about the costs reduction, we look at each element to see the costs for the next six months.

• This section has also to work on the product cost reduction, in order to find cheaper materials ; so they increased the use of plastic materials rather than metallic ones.

• Moreover, this section had also to car about the production processes and the production designs.

• Cost accounting system : It is made to generate an evaluation of inventory and product costs, as well as making a schema to control them ( control panel )/

• This section had to care about the inventory control planning of the production management section.

• Performance evaluation : this section was making a performance control manel to check the achievement of the differents processes.

• The top management with the directors were asked to approve thos panels and schedules, then, they were announced to each department.

2 – Describe Yokohama's budget planning system :

In order to plan the budgets, the firm decided to separate everything in six departments : administration, design, quality assurance,i njection pump manufacture, electronic and hydraulic systems manufacture, and electronic devices manufacture.

The planning department was located in the headquarter. This department had to create guidelines for the other different departments and itself.

The guidelines were about increasing the speed of a new product development, increasing individual product profitabilities …

There was several

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