Fixed costs tracking process improvement : The case of the Diesel Systems division at Bosch in Japan
Ho, Dung (2015)
Ho, Dung
Tampereen ammattikorkeakoulu
2015
All rights reserved
Julkaisun pysyvä osoite on
https://urn.fi/URN:NBN:fi:amk-2015090714385
https://urn.fi/URN:NBN:fi:amk-2015090714385
Tiivistelmä
The commissioner of this paper is the Diesel Systems division at Bosch in Japan, which is known as a leader in supplying Diesel Systems Technology for Japanese and Asian market. Cost controlling, in particular for fixed costs, is an essential managerial practice for all companies to generate profitable growth and to maintain a competitive edge in a volatile economic development. The newly upgraded SAP system introduced in the beginning of 2015 has driven the division to the desire of improving the fixed costs tracking process by deploying the new information technology tool. Therefore, the main objective of the thesis was to develop a new fixed costs reporting concept by utilizing SAP. The new concept aimed at eliminating manual work while providing meaningful information and highlighting crucial areas that require management’s attention.
Not only various literature sources and internal documents were reviewed intensively, but also the collaboration of the researcher and colleagues working in Controlling, Finance and Administration department was carried out significantly. Sharing of knowledge and experiences across team members was essential to keep the new concept in line with the division’s standards and requirements. Referring to the objective of the thesis, both qualitative and quantitative methods were applied. Qualitative approach was taken into account in the early of the research in order to gain understanding of the cost accounting process as well as how to work with SAP. In the latter part of the research, quantitative method was applied through precise measurement and analysis of statistics to prove the feasibility and applicability of the new concept.
Due to the inconsistency of data in the new SAP system, which could be only solved next year, the testing result presented here is only the most accurate estimation of the new fixed costs reporting concept’s applicability for the interim period. For that reason, additional testing efforts with valid data might be required, once the new reporting concept is applied at the start of 2016.
The thesis grounded on a concrete theoretical background, delivering detailed manual guidelines on how to utilize the new concept. Nevertheless, in-depth knowledge of the inner working environment, in addition to skills in using SAP and in the area of financial analysis are strongly recommended to successfully exploit the value of the new fixed costs reporting concept.
Not only various literature sources and internal documents were reviewed intensively, but also the collaboration of the researcher and colleagues working in Controlling, Finance and Administration department was carried out significantly. Sharing of knowledge and experiences across team members was essential to keep the new concept in line with the division’s standards and requirements. Referring to the objective of the thesis, both qualitative and quantitative methods were applied. Qualitative approach was taken into account in the early of the research in order to gain understanding of the cost accounting process as well as how to work with SAP. In the latter part of the research, quantitative method was applied through precise measurement and analysis of statistics to prove the feasibility and applicability of the new concept.
Due to the inconsistency of data in the new SAP system, which could be only solved next year, the testing result presented here is only the most accurate estimation of the new fixed costs reporting concept’s applicability for the interim period. For that reason, additional testing efforts with valid data might be required, once the new reporting concept is applied at the start of 2016.
The thesis grounded on a concrete theoretical background, delivering detailed manual guidelines on how to utilize the new concept. Nevertheless, in-depth knowledge of the inner working environment, in addition to skills in using SAP and in the area of financial analysis are strongly recommended to successfully exploit the value of the new fixed costs reporting concept.