Provided by James R. Martin, Ph.D., CMA
Professor Emeritus, University of South Florida
Citation: Martin, J. R. Not dated. CAM-I Concepts. Management And Accounting Web. http://maaw.info/CAM-IConcepts.htm
1. Become proactive rather than reactive – influence operations all along the value chain (design, purchasing, production, distribution, customer service) rather than simply recording transactions and events after the fact (score keeping).
2. Eliminate non-value added costs. Revised concept is to eliminate non-essential activities and waste in all other activities. Note that a non-value added activity may be essential.
3. Emphasize traceability of costs (now referred to as activity based costing ) rather than cost allocations based on a single production volume based measurement.
4. Emphasize life cycle costing and life cycle management rather than only inventory costing (i.e., use a whole life concept).
5. Emphasize a world class competitive strategy , e.g., minimize costs, cycle time, product defects and maximize flexibility and customer responsiveness.
6. Emphasize performance measurements designed to promote continuous improvement rather than short term financial outcomes.
7. Emphasize investment management (analyzing the portfolio of investments and use the moving baseline concept) rather than traditional capital budgeting (analyzing standalone projects using discounted cash flow methods).
8. Emphasize market driven costing (target costing) rather than engineer driven costing (standard costing).
9. Emphasize pull systems (JIT and TOC) rather than push systems.
10. Emphasize the correct sequence in the transition from traditional production (push) systems to CIM , i.e., from traditional push systems, to just-in-time systems, to flexible manufacturing systems, to computer integrated manufacturing systems.
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