System improvement via variance analysis

The development of a variance analysis model in a complex environment of a specialty brewery

Master thesis (2013)

Contributors

S. Cunningham (mentor)
Programme
SEPAM (TPM) (TU Delft)
Copyright: Campus only
Complexity Managerial accounting Variance analysis Soft operations research Facilitated modeling
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Published Date

04-12-2013

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Programme

SEPAM

Abstract

There is little doubt on the utility of a variance analysis to provide insights in the current operational performance and possible improvements. In complex environments data is ambiguous and can lead to less understanding of the results of such analyses. This creates problems in mobilizing the commitment to improve on the analysis’ findings. Soft OR methods were used to develop a variance analysis for a Dutch beer brewer. This model had the involvement and approval of key actors and resulted in commitment to action among the relevant actors in the company. Further research should point out whether the use of soft OR methods in managerial accounting has a strong value proposition.