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Posted: September 4th, 2023

Chapter 19: Costing and the Value Chain

MBA 560 MOD 6 DISCUSSION BOARD POSTS

Chapter 19: Costing and the Value Chain

COURSE MATERIAL

Textbook: Williams, J., Haka, S., Bettner, M., & Carcello, J. (2021). Financial & Managerial Accounting

(eBook with Connect access). New York, NY: McGraw-Hill Education. ISBN: 9781260706345

MOD 6

Identify a non-value-added activity at three different publicly traded organizations. Explain how each organization might be able to eliminate the non-value-added activity identified. Please make sure not to select organizations that are similar to prior posts.

_____________________
Post 1:

Organization: Amazon
Non-Value-Added Activity: Excessive Packaging
Explanation: One non-value-added activity that can be observed at Amazon is the excessive packaging used for shipping products. Amazon often uses large boxes with excessive void fill materials, leading to unnecessary waste and increased shipping costs. To eliminate this activity, Amazon can invest in packaging optimization technologies and techniques. By analyzing the dimensions of the products and utilizing custom packaging solutions, Amazon can reduce packaging waste and lower shipping costs while still ensuring the products’ safe delivery.

Post 2:

Organization: Coca-Cola
Non-Value-Added Activity: Manual Inventory Tracking
Explanation: Coca-Cola, being a global beverage company, manages a vast inventory across various locations. However, manual inventory tracking can be considered a non-value-added activity. To eliminate this activity, Coca-Cola can implement an automated inventory management system. By utilizing technologies like barcode scanning, RFID tags, and real-time data synchronization, Coca-Cola can streamline the inventory tracking process. This would reduce manual errors, provide accurate inventory information, and improve overall efficiency in supply chain management.

Post 3:

Organization: General Motors (GM)
Non-Value-Added Activity: Excessive Production Changeovers
Explanation: General Motors operates in the automotive industry, where frequent production changeovers can be observed. These changeovers involve the time and resources required to switch from producing one vehicle model to another. However, excessive production changeovers can result in increased downtime and inefficiencies. To eliminate this non-value-added activity, GM can implement lean manufacturing principles, such as implementing flexible manufacturing systems and standardized tooling. By reducing changeover time and increasing flexibility in the production process, GM can enhance efficiency, reduce costs, and respond more effectively to changing market demands.

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