Managing Information in Toyota Motor Corporation Research Paper

Managing Information in Toyota Motor Corporation - Research Paper Example The objective here is to achieve optimum cost control so that it will reflect positively on the bottom - the line of the company’s profits and give maximum returns to the stakeholders of the company. Efforts at cost control, without compromising on quality, are an everyday effort within the company Cost control can be defined as â€Å"Application of (1) investigative procedures to detect variance of actual costs from budgeted costs, (2) diagnostic procedures to ascertain the cause(s) of variance, and (3) corrective procedures to effect realignment between actual and budgeted costs.† The type of information that is required to achieve cost control is wide-ranging and has to be acquired from a variety of sources. The types of cost that are incurred in a typical manufacturing concern include direct costs, indirect costs, hidden costs, future liability costs, intangible costs, external costs etc.a. Direct costs: Direct cost is costs that can be readily identified as those d irectly incurred in them the manufacturing process. It includes raw materials, wages depreciation etc.  b. Indirect costs: Costs, which cannot be attributed directly to production, are termed as indirect costs. These include salaries, rent, marketing expenses etc.  c.   An example would be where customers are not satisfied with the product which results in a fall in sales. â€Å"Some examples of hidden quality costs are customer dissatisfaction with a product or defects in a product that causes a loss of sales.

Estimate the Cost of a Project Essay Example | Topics and Well Written Essays - 500 words

Estimate the Cost of a Project - Essay Example For each itemized activity also, a very detailed consideration is made with regards to the duration that the project members had to take to complete the activity. It is for this reason that a decomposed version of the work breakdown structure would be used. It is also important to note that before the final values of costs were reached, a comprehensive cost management plan was put in place to ensure that the final values are the best market values available. From the cost estimation, it can be seen that the present project is a high risk project in the sense that it involves a lot of cost. To mitigate the possible scenario of higher cost, it is admonished that the procurement stage, which entails the highest cost should be deprived of sole sourcing. The company ought to open up a public procurement bidding process to ensure that the company gets very good value for the project. It is also admonished that as much as possible, the company should depend on internal labor instead of external labor. This will actually go a long way to ensure that non-monetary costs are cut