Texas Eastman

Texas Eastman Company Objectives To illustrate how financial profitability measures can be used by workers to manage day-to-day operating decisions. Understand how to push down profitability information to empower employees. Know the design and information-processing prerequisites for daily profitability analysis. Appreciate the role of finance staff experts in preparing profitability analysis. Case Background The Texas Eastman case provides an excellent opportunity to discuss how financial measurements can support a company's Total Quality Management program. Occasionally, …

…profits reported at the plant. 4. In an ideal world, the finance staff might be able to produce its 4 Week Report by aggregating and reconciling the daily income reports from each department. In this way, the financial results would be prepared from managerial reports. This would be in sharp contrast to the situation in companies today where financial reports are prepared first and then mailed to managers who then try to extract useful information from them.