How Borg-Warner made the transition to pile accounting to JIT

Article Abstract:

Borg-Warner's Automotive Chain Systems Operation (Ithaca, NY) changed its manufacturing processes from a batch process to a continuous process flow based on a just-in-time (JIT) production philosophy. Under the continuous process flow system, new production is triggered by the demand from subsequent operations. Batches have been retained for production control and identification purposes, but a new batch is not begun until the batch in the process flow is transferred to the subsequent production stage. The introduction of company manufacturing cells and JIT production lines necessitated a new cost accounting system to monitor daily production and accurately measure output and calculate labor and overhead for financial reports. Credit is no longer focused on production activity but on output, and production is measured in physical units, making the information generated by the system more timely and simpler to understand.

Just in time inventory systems, Just in time systems, Cost accounting, BorgWarner Inc.

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Computerized budgeting at Lord Corporation

Article Abstract:

Lord Corp., a manufacturer of chemicals and elastomer bonded metal parts, has a new budget planning system which has increased the ease and speed of developing the yearly budget while cutting the number of statistical errors. Lord presently has 250 budget centers located at eight U.S. manufacturing sites and 29 office locations. The five transactional screens used by the budget manager at every budget center include a wage detail screen, the hourly personnel screen, the wage summary and employee head count screen, the budget screen divided by accounts, and the variable rate screen which is used with variable budgets. The Lord budget planning system will save each budget department manager time by eliminating all of the mathematical errors related to budget work and allowing easy and fast changes to the budget.

Management, Manufacturing industry, Manufacturing industries, Budget, Budgeting, Budgets, Lord Corp.

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