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Reeve, J. M. 1989. The impact of variation on operating system performance. Proceedings of the Third Annual Management Accounting Symposium. Sarasota: American Accounting Association: 75-89. Summarized by Nicole Sackedis |
TRADITIONAL COST CONTROL TECHNIQUE
STATISTICAL PROCESS CONTROL
SUMMARY COMPARISON OF TRADITIONAL CONTROL VS. SPC
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Weakness of Engineering Control (Traditional) |
Strengths of Statistical Process Control (SPC) |
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Not timely. |
Real time data. |
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Fails to promote process improvement. |
Promotes continuous process improvements. |
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Focuses on ends measures of performance. |
Focuses on causal factors of performance. |
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Myopic-production oriented only. |
Multi-factor oriented, productivity, quality, time. |
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High level of data aggregation. |
Time order of data preserved. |
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Top-down narrow control. |
Horizontal and process control. |
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Performance levels, ignores issues of variation. |
Performance bands and variation highlighted. |
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