Building understanding from throughput accounting with productivity and price recovery: case analysis of electronics contract manufacturer
AbstractThroughput Accounting (TA) has been analysed within the previous research works through the product mix problems, and it has been concluded that this method provides nearly optimal decisions (as compared to static optimisation methods), and performs significantly better than the other accounting approaches. However, there exists only scarce research related to the implementation and an actual use of TA in the short-term performance measurement context. In this paper, we present the results from electronics contract manufacturing company, and analyse these through American Productivity Center productivity and price recovery model. The results of the research suggest that productivity improves in the company level within the same phase among price recovery, but in different product groups the situation is diverse (this is caused mostly by product life-cycles and use of software). We also find that the manufacturer is able to benefit from price recovery; direct material prices are changing with sales prices, but the speed of change creates price recovery in nearly all situations, and eventually improves profitability. These findings stress the importance of revenue management; life-cycle phase and used technology of a product group seem to produce different patterns in productivity and price recovery.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Bibliographic InfoArticle provided by Inderscience Enterprises Ltd in its journal Int. J. of Revenue Management.
Volume (Year): 1 (2007)
Issue (Month): 4 ()
Contact details of provider:
Web page: http://www.inderscience.com/browse/index.php?journalID=99
price recovery; productivity; revenue management; throughput accounting; electronics contract manufacturing; product life-cycle; software.;
You can help add them by filling out this form.
reading list or among the top items on IDEAS.Access and download statisticsgeneral information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Graham Langley).
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.