Title :
From Profit to Profit Potential — Redesign the performance indicator to support Toyota Production System
Author :
Kawada, Makoto ; Niu, Zhan-Wen
Author_Institution :
Fac. of Bus. Manage., Meijo Univ., Nagoya, Japan
Abstract :
The 20th century manufacturing management tended to “control” people by management accounting numbers. In order to survive the global competition, the management accounting must raise the precision of its measure so as to help, not control, the knowledge workers tap the reservoir of their tacit knowledge. Admitting the intrinsic effectiveness of ROA as the key performance indicator (KPI), while at the same time indicating the limitation of it for the purpose of measuring operational profitability, this paper proposes the notion of Profit Potential (PP), and offers the actual case of PP analysis regarding Japan´s Big Three, including the after Lehman Brothers shock of the year 2009. The relative superiority of Toyota Production System (TPS) as well as its problem is exposed through the analysis.
Keywords :
automobile industry; management accounting; manufacturing systems; profitability; Toyota production system; key performance indicator; management accounting; manufacturing management; operational profitability; profit potential; return of investment; tacit knowledge; Ad hoc networks; Argon; Lead; Mobile computing; Petroleum; Phase measurement; Just in Time (JIT); Profit Potential (PP); cash versus profit; management information tiers; operational profitability;
Conference_Titel :
Industrial Engineering and Engineering Management (IE&EM), 2010 IEEE 17Th International Conference on
Conference_Location :
Xiamen
Print_ISBN :
978-1-4244-6483-8
DOI :
10.1109/ICIEEM.2010.5646647
