DETERMINISTIC PRODUCTIVITY ACCOUNTING FOR ENGINEERS TO DECODE FINANCIAL SIGNALS

• Bazil J. van Loggerenberg Productivity Measurement Associates

DOI:

https://doi.org/10.7166/1-2-456

Abstract

ENGLISH ABSTRACT: Industrial engineers are making increasing use of a new approach which permits productivity decoding of financial signals by monitoring the financial impacts of productivity change. The approach makes use of volume and price data from the accounting system and transforms them to create a set of variances which explains change in financial measures of operating performance with reference to productivity variances and other price-related variances.
The approach is used by the national productivity centres of South Africa, the United States, Australia and Israel. It is referenced in the engineering and economics literature of the United States, is taught in the engineering and commerce faculties of major South African universities, and has been adopted by premier South African undertakings such as Vaal Reefs, Gencor, AECI, Iscor, Eskom and the Post Office.

AFRIKAANSE OPSOMMING: Bedryfsingenieurs maak toenemend gebruik van In nuwe metingsbenadering wat die produktiwiteitsdekodering van finansillle seine insluit, ten einde die finansH!le impak van produktiwiteitsverandering te kan monitor. Die benadering maak gebruik van die volume- en prysdata van die rekeningkundigesisteem en skep In stel afwykings wat die verandering ten opsigte van bedryfsprestasie as In stel produktiwiteitsafwykings en ander prys-verwante afwykings weerspiel.
Die benadering word deur die nasionale produktiwiteitsentras van Suid Afrika, die Verenigde State, Australia en Israel gebruik. In Uiteensetting van die benadering het reeds in die tydskrifte van Bedryfsingenieurswese en Bedryfsekonomie in die Verenigde State verskyn, en kursusse wat die benadering insluit word in beide die fakulteite ingenieurswese en - handel aan die Suid Afrikaanse universiteite aangebied. Vooraanstaande Suid Afrikaanse ondernemings soos Vaal Reefs, Gencor, AECI, Yskor, Eskom en die Poskantoor maak gebruik van die benadering.