SMA
TECHNIQUES
Presented By : Group 2 Occ 3
Lecturer: Prof. Dr. Che Ruhana Isa
2
OUR TEAM
GROUP 2 | OCC 3
ALIS BATRISYA BINTI ELYZA JO’ANN ANAK
LIM TZE CHING
MOHAMED SOBRI JOHN TENSAY
S2118876/1
U2103989/1 U2001369/2
NIVETHA A/P NOR AIN SYAFIQA BINTI
THILLAINATHAN AHMAD LUQMAN
U2103991/1 S2125473/1
INTRODUCTION 3
Elyza Jo’Ann | U2001369
Importance of SMA techniques
Just-In-Time (JIT)
in manufacturing
SMA techniques
Decision-making
GROUP 2 | OCC 3
Activity-Based
Costing (ABC) Managing expenses for
optimal cost control
Gauge success factors
Target Costing
Kaizen Costing
4
Nor Ain Syafiqa | S2125473
TOP GLOVE
ABC COSTING
Top Glove began implementing Activity-Based Costing (ABC) in 2017 to
achieve more accurate cost allocation. The SAP software system facilitated
GROUP 2 | OCC 3
the ABC installation.
ABC dissects various cost components in the glove manufacturing process,
from material procurement to distribution. It helps to reveals consumption
patters and enhancing profitability.
ABC provides insights into the profitability of products, customer segments,
and distribution channels. This enables Top Glove to make informed decisions
on pricing strategies, product mix, and resource allocation.
5
Nor Ain Syafiqa | S2125473
TOP GLOVE
ABC COSTING
GROUP 2 | OCC 3
Top Glove has integrating ABC with lean manufacturing principles and
environmental management systems, Top Glove ensures efficient, high-
quality production while minimizing environmental impact.
ABC helps Top Glove stay competitive by increasing cost efficiency and
linking product costs to production knowledge.
6
Nivetha Thillainathan | U2103991
TOP GLOVE
TARGET COSTING
Top Glove employs a precise target costing strategy in the competitive glove
manufacturing market, balancing affordability and profitability through
GROUP 2 | OCC 3
thorough market analysis and data-driven knowledge.
Top Glove sets profit margins for surgical and examination gloves based on
market analysis, financial goals, and industry norms, guiding product design
and manufacturing.
Top Glove uses value engineering methods, quality function deployment, and
cost management to create affordable, competitive products. They minimize
waste and maintain functionality while ensuring quality. They manage costs
through supplier negotiations and parametric cost modelling.
7
Nivetha Thillainathan | U2103991
TOP GLOVE
TARGET COSTING
GROUP 2 | OCC 3
Top Glove is committed to cost reduction, negotiating lower suppliers,
implementing lean production, and exploring affordable materials, fostering
efficiency and innovation through employee proposals and Kaizen programs.
Top Glove maintains a competitive edge in glove manufacturing by strategic
target costing, offering premium products at reasonable prices,
demonstrating commitment to innovation and efficiency.
8
LimTze Ching| S2118876
TOYOTA - (JUST IN TIME)
Toyota , first company to introduce and implement the Just-In-Time (JIT)
1 method to minimise excess stock in car production
GROUP 2 | OCC 3
initially applied the JIT method in 1938, evolved into the well-known Toyota
Production System, which is based on the fundamental principles of JIT
2 ‘Jidoka’ is a concept that implies that the equipment should immediately halt
the production of defective products when a fault is detected
When dealers place orders, a production instruction is promptly sent to the
3 beginning of the car production line
The assembly line is stocked with the exact quantity of parts needed, neither
more nor less, and the cars are prepared for assembly
9
LimTze Ching| S2118876
TOYOTA - (JUST IN TIME)
The necessary parts are delivered just before they are needed to save
4 warehouse space and avoid unnecessary carrying costs. Subsequently, a timely
production process is implemented, where vehicles with varying specifications
GROUP2 | OCC 3
are assembled one after the other, swiftly ensuring high quality
5 Simultaneously, when parts are transferred to the production line, an
equivalent number of parts are retrieved from the previous process
6 In essence, the manufacturing and raw materials purchasing processes occur
concurrently
ensures that the inventory of vehicle parts maintained by Toyota is minimised,
leading to cost reductions
10
LimTze Ching| S2118876
TOYOTA - (JUST IN TIME)
Kanban
For the smooth operation of the JIT Purchasing process, Toyota relies on ‘Kanban’, a Japanese
term meaning ‘sign’
straightforward system that uses visual signals to trigger actions in a process and indicates
when raw materials or parts need to be pulled at the right time. Under this system, the
components governed by ‘Kanban’ determine the quantity to be ordered from the supplier.
The visual interface of ‘Kanban’ allows Toyota to better monitor and manage the flow of
work-in-progress, goods, and customer demands throughout the manufacturing process.
As the variety and volume of parts required by Toyota in production increase over time,
automated ‘Kanban’ readers are installed to simplify the handling of kanbans and the
associated clerical processing.
KAMARUL FAIRUZ BIN
11
HASSIM
Executive Director
Executive Director Office
NORMUHAINI BINTI AB. RONI EZATULSHIMA BINTI MD KHIR BIN MOHD YUNUS
Director MOHAMED ARIFF Director
Human Talent Management Director Human Talent Development
Centre Human Talent Services Centre Centre
Alis Batrisya | U2103989
12
TOYOTA - KAIZEN COSTING
Definition: Kaizen costing is the process of cost reduction during the
manufacturing phase of a product, through small improvement
Encourages maximum quality, waste elimination, and increased efficiency in
equipment and work methods.
Standardised Work:
Consistently following procedures.
Helps employees quickly notice problems.
Ensures high quality, waste removal, and efficiency.
Productivity: Incremental improvements in standardized work enhance
productivity at each jobsite.
Alis Batrisya | U2103989
13
TOYOTA PRODUCTION SYSTEM (TPS) AND KAIZEN
Employee Involvement:
- Workers identify and eliminate waste.
- Employees suggest ways to streamline processes.
Self-Criticism:
, - Regular evaluation and improvement, even when things run smoothly.
- Employees can stop production to fix issues and suggest solutions.
Reflection Meetings:
- Review procedures and address issues after project completion.
- Held even if no problems occurred.
- Impact: Small, continuous improvements and standardization boost productivity.
Elyza Jo’Ann | U2001369
CONCLUSION 14
CHALLENGES RECOMMENDATIONS
Data Integration Centralised Data Management
Challenges
Resources constraints Outsourcing strategic management
accounting operations.
Aims to preserve Supports long-term
profitability and cost competitive advantage
efficiency in a and operational
competitive market excellence
REFERENCE 15
Top Glove Corporation Bhd. (2022). Annual Report 2022. retrieved from
https://www.topglove.com/storage/annualreports/November2022/TG%20INTEGRATED%20ANNUAL%20REPORT%202022%20INTERACTIVE.pdf
Ansari, S. L., Bell, J. E., & Klammer, T. P. (1997). Target costing: The next frontier in strategic cost management.
Cooper, R., & Slagmulder, R. (1997). Target costing and value engineering. Portland: Productivity Press.
Monden, Y., & Hamada, K. (1991). Target costing and kaizen costing in Japanese automobile companies. Journal of Management Accounting
Research, 3(1), 16-34.
Songini, M. L. (2000, November 20). Just-in-time manufacturing. Computerworld. Retrieved from https://www.computerworld.com/article/2589691/just-
in-time-manufacturing.html
Toyota production system. (2022, March 25). Kanban Zone. Retrieved from
https://kanbanzone.com/resources/lean/toyota-production-system/
Toyota production system. (n.d.). Toyota Motor Corporation Official Global Website. Retrieved from https://global.toyota/en/company/vision-and-
philosophy/production-system/
Toyota production system. (n.d.). Toyota UK. Retrieved from
https://www.toyotauk.com/toyota-in-the-uk/how-we-manufacture/toyota-production-system
Toyota production system: Basic concept of the toyota production system. (n.d.). Toyota Motor
Corporation Official Global Website. Retrieved from
https://www.toyota-global.com/company/history_of_toyota/75years/data/automotive_business/production/system/change.html
Weatherwax, J. (n.d.). JIT: What is just in time inventory? BlueCart. Retrieved from
https://www.bluecart.com/blog/just-in-time-inventory-system#toc-jit-just-in-time-inventory-system
REFERENCE 16
Williams, M. & Ludwig, C. (2021, April 27). Why just-in-time will remain the way forward for Toyota. Automotive Logistics. Retrieved from Top Glove
Corporation Bhd. (2022). Annual Report 2022. retrieved from
https://www.topglove.com/storage/annualreports/November2022/TG%20INTEGRATED%20ANNUAL%20REPORT%202022%20INTERACTIVE.pdf
Ansari, S. L., Bell, J. E., & Klammer, T. P. (1997). Target costing: The next frontier in strategic cost management.
Cooper, R., & Slagmulder, R. (1997). Target costing and value engineering. Portland: Productivity Press.
Monden, Y., & Hamada, K. (1991). Target costing and kaizen costing in Japanese automobile companies. Journal of Management Accounting
Research, 3(1), 16-34.
Songini, M. L. (2000, November 20). Just-in-time manufacturing. Computerworld. Retrieved from https://www.computerworld.com/article/2589691/just-
in-time-manufacturing.html
Toyota production system. (2022, March 25). Kanban Zone. Retrieved from
https://kanbanzone.com/resources/lean/toyota-production-system/
Toyota production system. (n.d.). Toyota Motor Corporation Official Global Website. Retrieved from https://global.toyota/en/company/vision-and-
philosophy/production-system/
Toyota production system. (n.d.). Toyota UK. Retrieved from
https://www.toyotauk.com/toyota-in-the-uk/how-we-manufacture/toyota-production-system
Toyota production system: Basic concept of the toyota production system. (n.d.). Toyota Motor
Corporation Official Global Website. Retrieved from
https://www.toyota-global.com/company/history_of_toyota/75years/data/automotive_business/production/system/change.html
Weatherwax, J. (n.d.). JIT: What is just in time inventory? BlueCart. Retrieved from
https://www.bluecart.com/blog/just-in-time-inventory-system#toc-jit-just-in-time-inventory-system
THANK YOU
Presented By : Group 2 Occ 3
