F5 Homework

Sob sob! Homework is so difficult! I understand the lecture but I don't know how to do the question...... What am I going to do?! The question knows me but it is absolutely a stranger to me! Question marks flying all over my head now....... ????????

This question has four parts. I have done two of them. The other two...... Hmmm.... Foreign language.... Why are the questions in ACCA so long!!! Even before I can start doing it, I feel like sleeping already...... Read and read and read.... -_- zzz

Here's the two parts that I've done:

(a) Explain briefly what Optimized Production Technology and Theory of Constraints involve, what they aim to achieve and the circumstances in which they might be relevant.

Both OPT and TOC involves the approach to continuous improvement. Their main objective is to meet customers’ satisfaction effectively, efficiently and economically.

OPT concentrates more on maximizing its production level and at the same time respond only to the demand of its customers – having as little buffer stocks as possible at any time. OPT is concerned for quality and continual improvements of its products. Total Quality Management and the Just-In-Time System are tools to optimize the production process – ideally zero defects. For example Samsung Electronics is very concern about the quality of their products which impacts heavily on its reputation and brand. Therefore there is a need for them to manufacture only to satisfy customer orders and reduce overall quality cost over time through prevention and detection.

TOC seeks to identify a company's bottlenecks and exploit them so that throughput is maximized and inventories and operating costs are minimized. Its main objective is to increase return and reduce cost. TOC has a short-term focus – throughput margin analysis based on materials and material related costs. Its major use is for the optimization of the production flow and for short-term product mix. An example will be a firm that has three machines, whereby one of them is old and unreliable. And this machine’s output turnout to be the lowest amongst the three machines. This machine will be the bottleneck or constraint of the firm. Therefore TOC will be used to strengthen this weakest link and either change this machine or send it for repair and maintenance, hence increasing its output. This process will continue as to achieve the maximum throughput contribution with the lowest related costs.

(b) Outline the three key measures used in the theory of constraints and describe the four step approach that can be taken in the management of bottleneck resources.

The three key measures used in the Theory of Constraints are namely throughput, inventory and operating expense.

Throughput is defined as the rate at which the system generates money through sales, not through production. Goods are not considered an asset until sold. Inventory is defined as the money invested in goods that the firm intends to sell or material that the firm intends to convert into sellable items. The concept of value-added and overhead are not considered. Operating expense includes all the money the firm spends converting inventory into throughput.

The objective of the firm therefore is to increase throughput and decrease inventory and operating expense in such a way to increase profit. Anything that prevents this objective to be accomplished is a constraint.

There are four steps that the management can take to ensure that the constraint is strengthened.
· Identify the constraint
· Identify the throughput which the constraint is able to withstand
· Strengthen the constraint
· Keep reassuring which link is the constraint

Tough paper I would say! F5 = SCARY = TERRIFYING = FREAKING

Ok.. You've seen my answers.. As you can see.. It's bad yea! For (a), I don't know if I am answering the question and for (b), I don't know how to explain the four step approach - only know what are the four steps.

3Ps to tackle F5! Way to go!! ~~~

More friends for me

Well.. Well.. Well.. Law.. Another good friend of mine! Since secondary school days I always wanted to study law, wanted to become a lawyer. However, for some reasons, obviously I didn't become one. Haha...

When I was doing my Diploma in Management Studies 2 years back (time flies..), I got to experience what it is like to study law - Business Law. It was a great experience. And I thought that would be the first and last time I will be face to face with law.

Currently, Year 2008, I'm studying law again! Woohoo ~~ Corporate and Business Law, some what similar to Business Law. When I was reading through the study text for F4, I realised that one of my previous textbooks is a recommended reading material for my current module! I really love law. It's so interesting.

Unlike the other study text, F4's does not have the ability to hypnotize me. Haha.. It keeps me really awake, wanting more each moment as I flip through the pages. Smiling to myself, I'm glad I really love law. =) I can imagine those who find law a boring subject.. They probably will be dozing off reading the study text or even, they won't have bothered to open up the book.

I love what I'm doing now. Accounts... Always in touch with numbers and law.. Both of my best friends are with me! How fortunate I am! Envy?!

Making the choice to leave TOUCH is a right one. At least now I can be really focused on my studies. I can spend the whole day just reading the study texts for all four papers, resting when I'm hypnotized by them, and most importantly, getting back all my well-deserved sleep, after more than 10 months of insomnia!!

Tackling 4 papers... I can do it right the first time! And I want to.. Suffering the 'heart attack' for examinations once is more than enough! Stress... Healthier stress compared to working life. Haha.. More relaxed now. And I'm extremely glad!

Time to go back to my books. Consistency pays well......... =)

F3 Financial Accounting Lecture

All these while, I have always liked Financial Accounting. Haha.. And I'm still loving it. But somehow, this afternoon's lecture really hypnotised me! Not sure if it's because of my oats lunch or because I woke up too late - noon. Eye lids were extremely heavy today. -_- zzz

Oh well...... FA is fun! T-accounts.. Debit and credit.. ALICE.. Balance sheet.. Trading, Profit and Loss Account.. Fun!! =) I guess I made the right choice. Accounting and Finance is my cup of tea. Or rather, numbers are my best friends. Kudos my friends!

Sitting in the auditorium for 4 long hours is crazy! Butt ache. Haha.. Well.... It's the time to stretch my concentration span. It has been a long while since I can be focus on one thing for such a long period of time. My concentration span used to be superb! Now I have to re-learn the skill of concentration!

I'm feeling rather sleepy now especially after dinner.. Yawn..

-_- zzz

Too ambitious?

Taking 4 papers at one go. Is it realistic? Or is it too tough to do it? Taking F2 and F5 together... Will that be too risky?! F2 Management Accounting is the foundation of F5 Performance Management. F5 lectures are on Thursday nights while F2 lectures will only be on Friday nights. Taking F5 before F2....... Having no prior or rather limited knowledge about management accounting, and jumping straight into taking performance management...... Is it a great risk to take? Reading into F5 study text, I realised that I really need foundations and some knowledge of F2 before being able to fully understand F5. However, looking at the brighter side of things, if I were to master F5, F2 will be smooth sailing for me. Since young, I'm told that I should take one step at a time, building my foundations strong. All these years I have been doing so and life is quite stable. Haha... Now I'm trying to speed things up. I lost some time to UOL and I want to graduate fast. I'll take up the risk and soar like an eagle! I cannot lose! I do not want to lose either! I am a winner!! I desire to excel......

Now looking at apportionment in absorption costing, I have to refer back to F2 study text. But it's driving me crazy. Haha.. I can't seem to catch the point. Don't know how the answer is derived. I'm feeling so separated from studying after so long in the working world. Haha... It's so difficult to sit down the whole day to be focus and study. Even if I try, I can't sit for long. Hee Hee.. Getting restless........ Apportionment is so confusing... ~or maybe I am just confusing myself. Let's hope it's not that difficult to understand. I heard F5 is a very difficult paper to do (from people who already did both F2 and F5). And here I am trying to be very smart, doing both F2 and F5 together. Haha... TOGETHER I mean... I need wisdom. I need grace. I need mercy.

Looking forward to understanding F5 and mastering it. I am targeting to finish the fundamental papers (F2-F9: exempted from F1) by June 2009 so that I can start with the professional papers (at least P1&P2) before ACCA changes the system. Then CPA here I come! Certified Public Accountant sounds cool yea! ;)