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pyright 2023 Prentice Hall Finance/Accounting Audit ?Does the firm have sufficient working capital? ?Are capital budgeting procedures effective? ?Are dividend payout policies reasonable? ?Are the firm’s financial managers experienced well trained? 65 Copyright 2023 Prentice Hall Finance/Accounting Audit Effective Financial Analysis Requires: 1. Analysis of how the ratios have changed over time 2. How the ratios pare to industry norms 3. How the ratios pare with key petitors 66 Copyright 2023 Prentice Hall Production/Operations Production/Operations Functions ? Process ? Capacity ? Inventory ? Workforce ? Quality 67 Copyright 2023 Prentice Hall Facility design Technology selection Facility layout Process flow analysis Facility location Line balancing Process control Production/Operations Process 68 Copyright 2023 Prentice Hall Forecasting Facilities planning Aggregate planning Scheduling Capacity planning Queuing analysis Production/Operations Capacity 69 Copyright 2023 Prentice Hall Raw materials Work in process Finished goods Materials handling Production/Operations Inventory 70 Copyright 2023 Prentice Hall Job design Work measurement Job enrichment Work standards Motivation techniques Production/Operations Workforce 71 Copyright 2023 Prentice Hall Quality control Sampling Testing Quality assurance Cost Control Production/Operations Quality 72 Copyright 2023 Prentice Hall Production/Operations Audit ?Are suppliers of materials, parts, etc. reliable and reasonable? ?Are facilities, equipment machinery in good condition? ?Are inventorycontrol policies and procedures effective? 73 Copyright 2023 Prentice Hall Production/Operations Audit ?Are qualitycontrol policies procedures effective? ?Are facilities, resources, and markets strategically located? ?Does the firm have technological petencies? 74 Copyright 2023 Prentice Hall Research Development Research Development Functions ? Development of new products before petitors ? Improving product quality ? Improving manufacturing processes to reduce costs 75 Copyright 2023 Prentice Hall Financing as many projects as possible Use percentofsales method Budgeting relative to petitors How many successful new products are needed Research Development RD Budgets 76 Copyright 2023 Prentice Hall Research Development Audit ?Are the RD facilities adequate? ?If RD is outsourced, is it cost effective? ?Are the RD personnel well qualified? ?Are RD resources allocated effectively? 77 Copyright 2023 Prentice Hall Research Development Audit ?Are MIS and puter systems adequate? ?Is munication between RD other anizational units effective? ?Are present products technologically petitive? 78 Copyright 2023 Prentice Hall Management Information Systems Purpose ? Improve performance of an enterprise by improving the quality of managerial decisions. 79 Copyright 2023 Prentice Hall Management Information Systems ? Information Systems ? CIO/CTO ? Security ? Userfriendly ? Emerce 80 Copyright 2023 Prentice Hall Management Information Systems Audit ?Do managers use the information system to make decisions? ?Is there a CIO or Director of Information Systems position in the firm? ?Is data updated regularly? 81 Copyright 2023 Prentice Hall Management Information Systems Audit ?Do managers from all functional areas contribute input to the information system? ?Are there effective passwords for entry into the firm’s information system? ?Are strategists of the firm familiar with the information systems of rival firms? 82 Copyright 2023 Prentice Hall Management Information Systems Audit ?Is the information system userfriendly? ?Do all users understand the petitive advantages that information can provide? ?Are puter training workshops provided for users? ?Is the firm’s system being improved? 83 Copyright 2023 Prentice Hall 84 Value Chain Value chai