...SAMPLE CASE STUDIES – OPERATIONS Case Study 1 Make Versus Buy Case ABC Ltd. is a manufacturing company engaged in the manufacturing of valves. They have been in the business for last 3 years and have been manufacturing only one type of valves. They started their business initially with sales of 10,000 valves per month and now they have grown the volume to about 50,000 valves per month. They have been buying all the raw material for the valve and were doing all the manufacturing in house. Now they have established themselves in the market and are planning to expand and produce different varieties of valves. They have their plant in the main city and the total area of the plant is 50,000 sq. ft. Now if they want to expand and continue doing all the activities of manufacturing of all the varieties in house, they would need another 50,000 sq.ft. of the area. In the recent times, the land prices in the area have more than doubled in the last 3 years and still land is available with great difficulty. Mr. Mohan is the production head of ABC Ltd. and has been successful with the production and the level is continuously increasing. But in recent times, he is facing the problem of quality complaints which have gone up from average 0.2 % in previous 2 years to 0.5 % this year. Also, he is finding that there is a high level of dissatisfaction among the workers regarding workload as well as salary levels. The workers are regularly complaining about the over work. Although...
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...DOM05 Supply Chain Management Assignment – I Assignment Code: 2014DOM05B1 Last Date of Submission: 15th November 2014 Maximum Marks: 100 Section-A Each question carries 25 Marks. Q1. Discuss in detail few methods of Cost Control in Supply Chain Management. Q2. Discuss in detail few challenges faced by Supply Chain Managers today with few examples. Section – B Case Study (50 Marks) ABC Company is electronics, aerospace, electrical machinery, semi-conductors, and computer products Company. Its annual sales are nearly Rs. 1000 crore. It has manufacturing plants in 5 states and 4 foreign countries. It employs 120000 people worldwide. While its operations had expanded, its purchasing, warehousing and shipping functions had lagged behind its other business units in effectiveness. Although a JIT system had been installed, problems with materials remained because no one seemed to be accountable when difficulties arose. For example, a recent order from a supplier arrived late at ABC Company’s Jamshedpur plant. Purchasing blamed the warehouse and shipping. The warehouse blamed production control. Production control blamed warehousing and purchasing. Shipping claimed that the motor carrier lost the order for several days in Patna, thus delaying delivery. Each function pointed an accusing finger at the other functions. Discuss: How the problems faced by ABC Company could be solved by the use of Supply...
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...Logistics Information System (LO-LIS) Release 4.6C HELP.LOLIS Logistics Information System (LO-LIS) SAP AG Copyright © Copyright 2001 SAP AG. All rights reserved. No part of this publication may be reproduced or transmitted in any form or for any purpose without the express permission of SAP AG. The information contained herein may be changed without prior notice. Some software products marketed by SAP AG and its distributors contain proprietary software components of other software vendors. Microsoft , WINDOWS , NT , EXCEL , Word , PowerPoint and SQL Server are registered trademarks of Microsoft Corporation. IBM , DB2 , OS/2 , DB2/6000 , Parallel Sysplex , MVS/ESA , RS/6000 , AIX , S/390 , ® ® ® AS/400 , OS/390 , and OS/400 are registered trademarks of IBM Corporation. ORACLE is a registered trademark of ORACLE Corporation. INFORMIX -OnLine for SAP and Informix Dynamic Server Informix Software Incorporated. ® ® ® ® ® ® TM ® ® ® ® ® ® ® ® ® ® ® ® ® ® ® ® ® are registered trademarks of UNIX , X/Open , OSF/1 , and Motif are registered trademarks of the Open Group. HTML, DHTML, XML, XHTML are trademarks or registered trademarks of W3C , World Wide Web Consortium, Massachusetts Institute of Technology. JAVA is a registered trademark of Sun Microsystems, Inc. JAVASCRIPT is a registered trademark of Sun Microsystems, Inc., used under license for technology invented and implemented by Netscape. SAP, SAP Logo, R/2, RIVA, R/3, ABAP, SAP ArchiveLink, SAP Business...
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...Management Accounting Assignment Activity-Based Costing (ABC) is a theory for cost management controlling. Activity based on the management aims to describe a company as a series of activities which are related to customers’ desires and costs. Activity-Based Costing is a process for calculating the cost of the activities of an organization. Activities within an organization are identified and an average cost is related to each activity. The total cost of a product is the sum of the total costs of activities required to produce the product. The cost of every activity for products is identified as (the average cost of the activity) * (the number of times the activity, which is required for that product). Cooper and Kaplan (1992) explained how Activity-Based Costing allows the very important distinction between resource usage and resource purchase. The difference is the unused capacity. Removal of this unused capacity allows costs to be decreased. Turney (1992) thought that the important non-temporal links between cost and company quality. He also explained how it is important between assets, resource drivers, activities, activity drivers, processes, company performance, cost drivers, and cost. Turney (1989) claimed that underlying Activity-Based Costing is type of an assumption that activities cost resources and products consume activities. Activities contain the establishing vendor relations, spending, paying out, setting up a machine, running the equipment, reorganizing...
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...IT Consulting Skills: Unit 2 Assignment Jon Doe Kaplan University IT-402 Instructor 08.31.13 Questions asked to the client to challenge some of their assumptions and reveal their true needs: * Specifically, what area of the SAP program are you not able to implement? * This question is to determine the successes and limitations that they are currently experiencing to get a better picture of the current status of the implementation and whether they have met with any portion of success or if they have been unable to make use of the software at all. * What were the flexibility and integration limitations exactly for your in-house software suite? * This question can be used to determine what particular shortcomings their original software held and examine what could have been done to alter the system to make it work. * What do you feel worked well with your prior software and how does that relate to the functions of SAP? * We need to make a determination if Sap is able to provide the service that they are looking for or if another product better fits their needs for comparison. * What work has been done to this point to implement the SAP suite? * This will give insight to any part of the system that is functional, the stumbling blocks that are currently faced, and successes they have experienced. It will also provide clues to whether the software is functional but meeting resistance from users who preferred the in-house system...
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...Raytheon: An International Firm Raymond C. Branham Embry-Riddle Aeronautical University Managerial Accounting for Decision Making (MBAA 517) Dr. Mark Bellnap December 1, 2011 TABLE OF CONTENTS Abstract 3 Raytheon: An International Firm 4 Section I 4 Goods and Services, Market Share, Geographic Locations, and Major Competitors 4 Section II 5 Activity Based Costing at Raytheon 5 Section III 8 Standard Costs at Raytheon 8 Section IV 14 Relevant Costs at Raytheon 14 Section V 16 Summary, Conclusion, and Recommendations 16 References 18 Appendix 19 Abstract In today’s hectic economic environment, a company’s financial performance is becoming a highly focused upon part of successfully running a company in America and throughout the World. Equally important, is the ability to address accounting matters in this environment. At Raytheon, it is the task of each function within the company to consider each and every accounting aspect, because their customers are all over the world and each one of those customers approaches financial matters in unique ways. For Raytheon to maintain its success, it is imperative for each employee to understand how to manage these accounting aspects. The lack of accounting knowledge and specifically, each unique accounting approach, and how to execute each approach is why there is a huge problem with finances in corporate America today. Many organizations have altered their approach to this issue, but Raytheon has stood...
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...Chapter 1 Introduction Overview of Organization The ABC Logistics Squadron is a consolidated logistics squadron providing supply, vehicle and readiness support to the ABC Wing, tenant units and agencies. The guiding principles utilized in the performance of the organization are as follows; a. Mission Statement: A military organization dedicated to providing logistical support to our Joint Service Community. b. Vision Statement: Provide quality service to our customers in support of their missions. c. Values: Integrity, Accountability, Teamwork and Excellence. The squadron provides direction and management of base logistics processes related to cargo mapping, equipment, fueling operations, vehicle dispatch and deployment planning. The function of the squadron is to manage the overall supplies of the wing and effectively manage its inventories. It is a part of the Air National Guard, ABC Wing with over 150 personnel encompassing, active military, traditional guardsmen and civilians. Currently, I am the Logistics Readiness Officer who: a. Provides oversight of the internal storage and external shipping of logistics supply activities for the ABC Wing b. Is responsible for managing and staffing the Material Management Flight for the logistics supply and information sections c. Actively oversees and manages proper implementation of unit programs for supply and the issue of all mobility bag assets d. Administers procedures, programming and staffing of individuals...
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...STRATEGIC MANAGEMENT ASSIGNMENT 4 1.0. Supply Chain Management Intense competition in today’s global marketplaces, products with shorter life cycles, andsuperior expectations of customers have compelled business entities to invest in, and focus ampleattention on, their supply chains. Supply chain management has already become corecompetencies of various business enterprises such as: Apple, Intel, Samsung, P&G, Wal-Mart, Nike, Toyota and Audi which gives them the competitive advantage over their rivals. (Gartner,2012)The concept of supply chain management has become ever popular in today’s business world asit exists in both service and manufacturing organizations. It can be defined as: “ A set of approaches utilized to efficiently integrate suppliers, manufacturers, warehouses, and stores, sothat merchandise is produced and distributed at the right quantities, to the right locations, and at the right time, in order to minimize system wide costs while satisfying service level requirements. ” (Edmund P. & Kim W., 2013)Supply chain is basically an integration of independent organizations associated together as agroup through products and services where group associates jointly or separately add value on inorder to deliver them to end customers and meet their the needs. It consists of numerouselements that are connected together through the movement of products along it. Customer, planning, purchasing, inventory, production and transportation are the components...
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...Executive Summary Change, change, change… the speed within business and industry has increased immensely over time and new products are introduced regularly. The world has changed and will continue to change. Organizations perceive change as very important for its survival and prosperity in today’s most competitive environment and new business challenges. The success and performance superiority of organizations are very much dependent on the ability to align its internal arrangement with the demand of external world. Every business will contend to produce not only a better and more reliable product but also providing a better customer service. These can only be achieved through developing a better information system, a highly reliable infrastructure and a more efficient management system. ERP Systems born to help the different parts of the organization share data and knowledge, reduce costs, and improve management of business processes. A widely known critical success factor for effective ERP or large IT projects is organizational change management. ERP implementations are not mere Technology Platform changes, but with cascading effects all across the Organization, including business process and organization Structure. This assignment will observe the needs of “change management” in correlation with ERP Implementation and how “change management” plays significant roles in developing an integrated Enterprise system. I focus the ERP implementation process of ABC Co., Ltd which...
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...the effect of the fast pace of technological change on human resources. Since it is known that the higher level technologies tend to be more complex, which results in a requirement for a highly skilled workforce to maintain and sustain, the cost to hire and retain these experts is rising at a pace that is equal or faster than the technologies themselves. The required constant training costs to keep these human resources up to date with the existing and even emerging technologies can put a huge dent in the organizations bottom line. This level of expertise also makes these human resources become a demanded commodity by your competitors, which unless they are contractually bound to remain with your organization, could be a real reason to drastically interrupt your developments until a suitable replacement is acquired. Another effect is that with the attempt to keep pace with these fast paced technological changes, your skilled staff will require constant updated or replaced tools (computers, analytical software, and other financial driven requirements) to enable them to carry out their daily requirements. The positive side to investing in and retaining this level of human resources is that they can then be empowered to make decisions to improve production and other areas that will reduce the response time related to competitor’s threats. With a workforce that possesses this high level of skill sets, it is paramount that management is able to harness and fully utilize all of the...
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...TUTORIAL Implementing Activity-Based Management in an Acquisition Organization IMPLEMENTING ACTIVITY-BASED MANAGEMENT IN AN ACQUISITION ORGANIZATION Diana I. Angelis To manage costs and comply with financial management laws and regulations, government acquisition organizations must first understand what they do and why they do it. This is critical to identifying customers, defining outputs, and developing systems to collect and trace the cost of resources to outputs. One of the more popular models for collecting and tracing costs is known as activitybased costing (ABC). This article examines how one government acquisition organization is using ABC to understand and define outputs and processes, to collect and trace the cost of doing business, and how it plans to use this information in the future. T he Federal Financial Management Improvement Act (FFMIA) of 1996 requires agencies to produce cost and financial information that will assist the Congress and financial managers with evaluating the cost and performance of federal programs and activities and thus improve decision making. The law is intended to increase the capability of agencies to monitor the execution of their budgets by providing better support for the preparation of reports that compare spending of resources to results of activities. This Act has provided the impetus for government agencies to understand, measure, and manage their costs. Air Force Materiel Command (AFMC), headquartered...
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...Table of Contents Cover Title Page Copyright Learning System Table of Contents Chapter 1. Purchasing and Supply Management Chapter 2. Supply Strategy Chapter 3. Supply Organization Chapter 4. Supply Processes and Technology Chapter 5. Make or Buy, Insourcing, and Outsourcing Chapter 6. Need Identification and Specification Chapter 7. Quality Chapter 8. Quantity and Inventory Chapter 9. Delivery Chapter 10. Price Chapter 11. Cost Management Chapter 12. Supplier Selection Chapter 13. Supplier Evaluation and Supplier Relations Chapter 14. Global Supply Management Chapter 15. Legal and Ethics Chapter 16. Other Supply Responsibilities Chapter 17. Supply Function Evaluation and Trends Other Facts101 Titles 2 3 Title Textbook Outlines, Highlights, and Practice Quizzes Purchasing and Supply Management by P. Fraser Johnson, 14th Edition All "Just the Facts101" material written or prepared by Cram101 Publishing 4 Copyright Information Just the Facts101 ®, Cram101® Textbook Outlines, Cram101 e-StudyGuides and Cram101.com are Content Technologies Inc. publications and services. All notes, highlights, reviews, and practice tests are written and or prepared by Content Technologies, Inc. and Cram101 Publishing. Copyright © 2014 by Content Technologies, Inc. All rights reserved. eISBN 9781490281032 E-5 23479 www.Cram101.com 5 LearningSystem "Just the Facts101" is a Cram101 publication and tool designed to give you all the facts...
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...2. A description of the main issues raised in the case from the point of view of logistics management This report outlines issues Hammond Manufacturing’s Transformer group faced in cooperation within the entire Hammond Group. The main issue was described by Hammond’s management as late delivery from the cabinetry plant to the Guelph plant what displeased customers and caused numerous delays on production site. All problems can be divided in 5 general groups and will be described in detail further: 1. Forecasting Issues 2. Production Scheduling Issues 3. Organizational Issues 4. Process Strategy Issues 5. New Demand Management Issues 2.1. Forecasting Issues The sales team created forecasts in October for the following calendar year by product lines for all products, based on this forecast the both plants planned their productions and orders accordingly. The company revised its forecasts on a quarterly basis. Production planners reviewed performance monthly and weekly then changed the production schedule when its original forecast proved inaccurate. But frequent changes in customer demand and design caused serious production disorder and delays in orders fulfilment. Creating a new production schedule on a monthly basis did not help as the supply chain had been already filled in based on the old one. Moreover, forecasting inaccuracy resulted in too little or too much inventory, which was not enough to fulfil unexpected sales demands. 2.2. Production Scheduling Issues ...
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...scientifically manage production lines and warehouse operations. These ideas, however, led to exaggerated business processes that transitioned into “running a business by the stopwatch” with employers treating human employees as if they were highly reliable, predictable machines to be monitored and controlled. Over time, the workplace’s view of performance measurement became more humane and these exaggerated types of monitor and control methods fell out of favor, replaced by a focus on measuring a business’ performance rather than that of the individual. Throughout the last decade, companies have expended significant amounts of time and effort to re-engineer their supply chains through business process change and technology focused on implementing integrated Supply Chain Management (SCM) principles....
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...3 Organizational Strategy, Information Systems, and Competitive Advantage When Dee asked her boss for a budget to create her blog, he responded by asking the questions at the start of Chapter 2 (page 20). Using the knowledge in that chapter, she was able to respond, and he tentatively approved her budget request. Before he did so, however, he said that he wanted a memo from her on how her blog would provide a competitive advantage. He wanted that memo so that he could include it in the documentation he would use to justify the expense to his manager. The knowledge presented in this chapter will help her write that memo. An optional Extension for this chapter is CE3, “Knowledge Management and Expert Systems.” Study Questions Q1 Q2 Q3 Q4 Q5 Q6 How does organizational strategy determine information systems structure? What five forces determine industry structure? What is competitive strategy? What is a value chain? How do value chains determine business processes and information systems? How do information systems provide competitive advantages? How does the knowledge in this chapter help Dee and you? 37 38 Chapter 3 Organizational Strategy, Information Systems, and Competitive Advantage Industry Structure New Vendors Competitive Strategy Value Chains Business Processes Information Systems Threat of new entrants Lowest cost across the industry Customers Better product/service across the industry Better product/service within...
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