Role of Strategic Management Accounting Essay Example | Topics and Well Written Essays - 750 words

Role of Strategic Management Accounting - Essay Example Strategic management accounting (SMA) has been introduced as a field of study in the accounting profession. The core purpose of introducing SMA is to advance on the usual management accounting by giving it a wider scope. The introduction of SMA was due to numerous requests on the improvement of MA. SMA centers on the internal financial information of the business as well as the external facet of the business operation. Compared to management accounting, SMA focuses more on comparing the business with the competitors, which helps the managers to be more vigilant based on how the competitor is conducting business (Shah, Muhammad & Malik 2011, p.1)The management learns business techniques from competitors and makes appropriate decision. The ability of SMA to include non-financial features of business in decision making is a major breakthrough in accounting. In a nutshell SMA plays vital roles in business management such as collecting information that is related to the competing business . It is also used in helping the accountant and the management make a strategic decision that relates to the business. Also, SMA help in cost cutting measures based on strategic decisions by the management, and finally, Strategic business management, is resourceful in helping the business gain competitive advantage over the rival businesses. In performing the above roles, authors of strategic business management have been encouraging accountants to use analytical tools developed and used in the area of strategy. and marketing which are now essential in the field of SMA. The first tools of SMA as presented by scholars is the Competitor cost assessment, this involves making a keen analysis of the cost that the business competitor incurs. Such cost, which includes labor, raw materials and production cost, is accessible mainly with the increasing development of accessing information. Analyzing and understanding this cost will help the management to cut and manage the business cost. The second tool is attributing costing which is costing system that emphasizes on the products attributes. Such attributes will include the features of the product, purchase agreements and after- sale services. The information analyzed in costing system should have relevance with either the current or future employer (Shah, Muhammad & Malik 2011, and p.3). Another tool is SMA is the application of the balanced scorecard (BSC) which was proposed by Norton and Kaplan in 1992. In BSC financial and non-financial measures are amalgamated for strategic performance management purposes. The intention is to create a balance by linking vision and strategy of the business with multi-dimensional points of view of the customer. Competitor Appraisal Based on Financial Assessment is another crucial tool of SMA. This model is effective as it allows comparison and yard sticking. The process is also fairly cheap in comparison to others. Strategic costing is also an

Condition monitoring - fault detection and diagnosis Literature review

Condition monitoring - fault detection and diagnosis - Literature review Example Hybrids of SVM methods such as combined SVM (CSVM) have been used extensively for process control such as in the Eastman process. Results indicate the superiority of SVM based methods over other methods of control (Tafazzoli & Saif, 2009). SVM methods have been employed extensively in order to classify reciprocating compressor faults. SVM methods were employed in order to classify faults of reciprocating refrigeration compressors through the application of wavelet transform and statistical methods. Significant features were extracted from both raw noise signals and vibration signals. The selection of relevant RBF kernel parameters was carried out through iteration (Yang et al., 2005). In a similar application, SVM methods were applied to reciprocating compressors butterfly valves to classify cavitation faults (Yang et al., 2005). A comparable research was performed on reciprocating compressor valves to classify faults through vibration signals alone. Data for this purpose was gathered from the surface of the valve and the resulting vibration signals were decomposed by applying local wave methods (Ren et al., 2005). One of the larger problems posed by reciprocating compressor valves is the non stationary and non linear characteristics of the extracted vibration signals. In order to deal with the non stationary and non linear nature of such data, information entropy with good fault tolerance potential was utilised as the feature parameter fed to a SVM. This was utilised as being a comprehensive characteristic of the raw vibration signal. The resulting decision function was used to solve the limits of traditional fault classifications. The added strength of the SVM was its ability to be trained with only a few input samples to deal with multiple new faults (Chen & Lian, 2010). The small linear pattern recognition performance and relatively small data sets extracted from reciprocating