Performance Measurement: Quality, Cost, and Time Is New System: So Called Strategic Cost Management

Abstract

The rise in global competition has induced organizations to adopt new approaches in management. These changes in manufacturing environments have shifted the emphasis on management reports and are creating information needs that cannot be fulfilled by traditional measurements and reports. Information reporting is now expected to focus more on influencing and supporting the long-term goals and strategies of firms. This paper discusses the impact of iron triangle and its implications in terms of information reporting, strategic cost analyses and control. We compare the traditional approach measurements and reporting with the changes that are taking place in organizations. Contemporary firms must compete simultaneously on three dimensions: quality, cost, and time. These three elements form a strategic triangle is ‘‘Iron Triangle’’.

Keywords: quality, cost, and time and strategic cost management