...outlining the five-step processes that will identify the bottleneck resources to dictate our throughput and inventory. Operational Measurements Our organizations’ operation will be expressed in three measurements; the goal, throughput, inventory and operational expenses. These measurements will help to keep our resources balanced and help increase the throughput while reducing the inventory and operational expenses at the same time. For the organization, the goal would be to obtain at least $15 million in funding sources within the next two fiscal years. We would pay special attention to the requirements of the competitive awards and would not attempt to complete proposals for awards that we are not currently eligible for. The throughput will be the number of grant proposals that are submitted. Our inventory is measured in open and eligible grants that we have not been completed or submitted. And the operational costs would include personnel costs, fundraising expenses and other resources that are used to complete the proposal process. The Five-Steps of the Theories of Constraints Step 1: Identify the organizational bottleneck(s). After reviewing the budgeted funding pipeline for the year, we only received 35% of the funding we expected between January and July. We found that there were grant proposals that we were eligible for that we did not compete for and some of our proposals were rejected because they were late, incomplete or did not meet one or more requirement. Due to fundraising...
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...November 3, 2011 MGMT 3624 -‐ Case 3: B&L Inc. Assignment 1) What do you think of the quote from Mayes? • How would you respond? • What information would you request? 2) Can Brian Wilson use the EOQ formula here to establish the lot size? • Do all of the EOQ assumptions hold here? 3) Do you think B&L should outsource the bracket? • Why or why not? 4) What would you say to the plant manager? 5) Is the cost savings sufficient enough to move the business to Mayes? Assume that you were in the position of Brian Wilson: What would be your analysis of the opportunity to outsource the outrigger bracket? B. If B&L was to outsource the outrigger bracket to Mayes, what lot sizes would you specify and why? (Note: You must address this question, regardless of your response to Question A.) A. MGMT 3624 Case 3: B&L Inc....
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...Note: This report is far more comprehensive than would be expected from a candidate in exam conditions. It is more detailed for teaching purposes. T4- Part B – Case Study Jot – toy case – March 2012 REPORT To: Jon Grun, Managing Director, Jot From: Management Accountant Date: 28 February 2012 Review of issues facing Jot Contents 1.0 2.0 3.0 4.0 5.0 6.0 7.0 Introduction Terms of reference Prioritisation of the issues facing Jot Discussion of the issues facing Jot Ethical issues and recommendations on ethical issues Recommendations Conclusions Appendices Appendix 1 Appendix 2 Appendix 3 Appendix 4 Appendix 5 Appendix 6 Appendix 7 SWOT analysis PEST analysis Selection of new outsourced manufacturer for products YY and ZZ VP “own brand” proposal Inventory valuation Calculations for outsourced manufacturers P and Q for licensed action figures Email on the key criteria for the selection of outsourced manufacturers 1.0 Introduction Jot is a small unlisted company which designs and outsources the manufacture of a range of children’s toys. It has grown rapidly since it was established in 1998. It is currently experiencing manufacturing problems due to an earthquake affecting 2 of its outsourced manufacturers and also quality problems with another outsourced manufacturer. The quality of the company’s products, upon which its reputation is based, must not be compromised. The Jot brand name is known for quality toys but it is important that its products appeal to costconscious...
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...  Note: This report is far more comprehensive than would be expected from a candidate in exam conditions. It is more detailed for teaching purposes.  T4- Part B – Case Study Jot – toy case – March 2012 REPORT To: Jon Grun, Managing Director, Jot From: Management Accountant Date: 28 February 2012 Review of issues facing Jot Contents 1.0 Introduction 2.0 Terms of reference 3.0 Prioritisation of the issues facing Jot 4.0 Discussion of the issues facing Jot 5.0 Ethical issues and recommendations on ethical issues 6.0 Recommendations 7.0 Conclusions Appendices Appendix 1 Appendix 2 Appendix 3 Appendix 4 Appendix 5 Appendix 6 Appendix 7 SWOT analysis PEST analysis Selection of new outsourced manufacturer for products YY and ZZ VP “own brand” proposal Inventory valuation Calculations for outsourced manufacturers P and Q for licensed action figures Email on the key criteria for the selection of outsourced manufacturers 1.0 Introduction Jot is a small unlisted company which designs and outsources the manufacture of a range of children’s toys. It has grown rapidly since it was established in 1998. It is currently experiencing manufacturing problems due to an earthquake affecting 2 of its outsourced manufacturers and also quality problems with another outsourced manufacturer. The quality of the company’s products, upon which its reputation is based, must not be compromised. The Jot brand name is known for quality toys but it...
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...provides three copy machines in its copying room for the use of its employees. However, due to recent complaints about considerable time being wasted for a copier to become free, management is considering adding one or more additional copy machines. During the 2000 working hours per year, employees arrive at the copying room according to a Poisson process at a mean rate of 30 per hour. The time each employee needs with a copy machine is believed to have an exponential with a mean of 5 minutes. The lost productivity due to an employee spending time in the copying room is estimated to cost the company an average of $25 per hour. Each copy machine is leased for $3000 per year. Determine how many copy machines the company should have to minimize its expected total cost per hour. • Describe queuing model (i.e, M / M /s, M / M/ s // K, etc.) [pic] • [pic][pic] | |3 machines |4 machines |5 machines |6 machines |7 machines | |E (SC) | | | | | | |E(WC) | | | | | | |E(TC) | | | | | | Case 17.1 Reducing In-Process Inventory Jim...
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...Letter of Transmittal: Venice Art and Ceramic Titles Company Ltd. 692500 Sovetskaya Avenue, Ussuriysk, Russia 75226 8 924335 95 55 April 29, 2010 Mr. Alexey Morgunov, the Managing Director Venice Art and Ceramic Titles Company Ltd. 17 Pushkina St, Ussuriysk, Russia 6925191 Dear Mr. Alexey Morgunov: Enclosed is a copy of an Inventory Management System proposal that I completed during the fall of last year upon a request that was made to me by the IT Department Board. The main objective of the proposal was to analyze the operations of the Inventory Management system that is currently in use and come up with some its weaknesses and strengths. An integration of both would then enable the department to come up with a conclusion of a completely different system that would cover up for the shortcomings of the current system and add more value to its strengths. According to the proposal approved by the IT management Board, the proposed system would take at least three months to complete before implementation is done. The whole project would cost $1,500,000 to complete and implement. Some of the limitations as per the proposal included lack of enough capacity within the current PCs in use to accommodate the new system and so an upgrade to all the PCs was suggested. The user level of information was also to be upgraded to enable them use the new system effectively. The purpose of this letter is to request your office to consider the viability of this project in terms...
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...Request for Proposal Implementing An Inventory Control System Blooming Business Hermitage, TN (615) 915-2548 Lorraine Huff Lorri1289@live.com PM598 – Summer 2012 TABLE OF CONTENTS 1. INSTRUCTIONS TO BIDDERS 4 Blooming business is a growing company that supplies consumers with seeds ordered from a catalog. We are looking to implement a new inventory control program that will help us to adequately handle our customer’s needs and help to improve the ability to maintain our product stock. 4 1.1. General Description of Work 4 1.2. What Must Be Included with Bid 4 Bidder must be licensed to perform work in the state of Tennessee. 4 Bidder must have a minimum of enter 2 years of experience providing inventory control system programming. 4 Bidder must have at least three (3) non-Bidder owned customer references for whom the Bidder has provided similar services during the past thirty-six (36) months preceding the bid due date. 4 Bidder is expected to examine the specifications, deliver schedule, prices and all instructions of the Request for Proposal or Invitation to Bid 4 Any supplies or equipment offered in a bid must be new and of current technology. 4 Firm prices should be bid and should include any taxes, along with shipping and handling charges. 4 1.3. Schedule of Bid Period Activities 4 1.4. Location of Work 4 1.5. Pre-Bid Meeting 4 1.6. Owner Contact for Questions 5 1.7. Pre-Award Surveys 5 1.8. Sealed Bid Requirements 5 1.10. Ethical...
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...effectively making zero inventories. In other words, in a JIT environment materials are purchased and produced as and when it is needed. The whole idea is based on the phrase provide the goods just in time as promised when the order is placed by the customer. The opposite of the JIT production is known as JIC (Just in case) system where it produces goods for inventory with the intention of having goods just in case a customer places an immediate order. JIT production system identifies the hidden problems in the value chain and reduces the production waste of the system while increasing the throughout (Sales- Raw Material Cost). Even though the JIT system seems to be interesting and less complicated it requires lot of coordination with supply chain to avoid delays in the production schedule. The whole concept of the JIT is differentiated from traditional productions systems using push vs. pull systems ofproduction. The push system of production pushes materials to the next stage of the production irrespective of whether time and resources are needed at the next level of production creating lot of inventories at each level of the production flow. The traditional manufacturing organizations adopt push system where they produce for inventory and work in progress. The pull system of production is where the materials are pulled by next level of the production only when is signaled or required by the next stage of production. This drastically reduces the inventory held as it does not keep...
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...mean “tons of forms” to be sent to suppliers but would also give Callaway some leverage. Based on the projected value of the order, it would be necessary for each supplier to provide a cost and price breakdown on the SF 1491. From this breakdown, Callaway could estimate the reasonableness of the price. Callaway engineers would provide the design to meet the customer’s specs, and, in turn, it would be supply management’s responsibility to handle the contracting aspect. Since the board is custom designed, it would require a fair degree of interaction between the potential suppliers and Callaway’s engineering staff. Cost was also’ a factor. Thus, there would have to be both an engineering evaluation with respect to technical aspects of the part as well as a cost analysis made. Tom Cunningham, the supply manager of Callaway Electronics, concurred with...
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...Request for Proposal An Inventory Control System Just Seeds Unlimited Co. 4105 Stuart Andrew Blvd Unit #3 Charlotte, NC 28217 704.222.2222 Distribution List (TBD) Linnea L. Williams lwilliams.lwilliams@gmail.com PM598 – May 2011 TABLE OF CONTENTS 1. INSTRUCTIONS TO BIDDERS 5 1.1. General Description of Work 5 1.2. What Must Be Included with Bid 5 1.3. Schedule of Bid Period Activities 6 1.4. Location of Work 6 1.5. Pre-Bid Meeting 7 1.6. Owner Contact for Questions 7 1.7. Pre-Award Surveys 8 1.8. Sealed Bid Requirements 8 1.9. Basis for Bid Evaluation 9 1.10. Ethical Standards 10 1.11. Responsibility for Surety Bonds 10 1.12. Proposal Format 10 1.13. List of Bidders 12 1.14. Letter of Acknowledgment 13 2. DESCRIPTION OF WORK 13 3. PROPOSAL 15 3.1. Breakdown of Bid Price 15 3.2. Revisions and Extra Work 15 3.3. Scheduled Completion Dates 16 3.4. List of Subcontractors 16 3.6. Key Supplier or Contractor Personnel 17 3.7. List of Bid Document Addenda Reviewed by Bidder 17 3.8. Notice of Conflicts or Errors in Bid Documents 17 3.9. Bidder Signature 17 4. SPECIFICATIONS AND DRAWINGS 18 5. GENERAL CONDITIONS AND CONTRACT AGREEMENTS 18 Appendix B 21 Supplier/Bidder List 21 1. INSTRUCTIONS TO BIDDERS The following section entails information that Just Seeds Unlimited Co. requires of bidders when preparing the response bid proposal: 1.1. General Description of Work Provide Just Seeds Unlimited Co. with a fully designed solution for...
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...Request for Proposal An Inventory Control System Just Seeds Unlimited Co. 4105 Stuart Andrew Blvd Unit #3 Charlotte, NC 28217 704.222.2222 Distribution List (TBD) Linnea L. Williams lwilliams.lwilliams@gmail.com PM598 – May 2011 TABLE OF CONTENTS 1. INSTRUCTIONS TO BIDDERS 5 1.1. General Description of Work 5 1.2. What Must Be Included with Bid 5 1.3. Schedule of Bid Period Activities 6 1.4. Location of Work 6 1.5. Pre-Bid Meeting 7 1.6. Owner Contact for Questions 7 1.7. Pre-Award Surveys 8 1.8. Sealed Bid Requirements 8 1.9. Basis for Bid Evaluation 9 1.10. Ethical Standards 10 1.11. Responsibility for Surety Bonds 10 1.12. Proposal Format 10 1.13. List of Bidders 12 1.14. Letter of Acknowledgment 13 2. DESCRIPTION OF WORK 13 3. PROPOSAL 15 3.1. Breakdown of Bid Price 15 3.2. Revisions and Extra Work 15 3.3. Scheduled Completion Dates 16 3.4. List of Subcontractors 16 3.6. Key Supplier or Contractor Personnel 17 3.7. List of Bid Document Addenda Reviewed by Bidder 17 3.8. Notice of Conflicts or Errors in Bid Documents 17 3.9. Bidder Signature 17 4. SPECIFICATIONS AND DRAWINGS 18 5. GENERAL CONDITIONS AND CONTRACT AGREEMENTS 18 Appendix B 21 Supplier/Bidder List 21 1. INSTRUCTIONS TO BIDDERS The following section entails information that Just Seeds Unlimited Co. requires of bidders when preparing the response bid proposal: 1.1. General Description of Work Provide Just Seeds Unlimited Co. with a fully...
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...purchasing outside stores services: * A purchase price saving of approximately 6 percent can be realized on approximately 90 percent of the items purchased. Assuming that this 90 percent includes a proportionate number of high-value items, minimum purchase savings should approximate $48,000 to $50,000 per year ($900,000 x .90 x .06 = $48,600). * If the stores operation is discontinued, personnel and facilities operating costs can be reduced approximately $200,000 per year. (This assumes that the four individuals can be absorbed on an attrition basis elsewhere in the organization, and that the freed-up space can be used for other productive purposes.) * If Futronics is able to enter into a systems contracting type of agreement for three years with one of the supply houses, the incremental supply ordering costs in purchasing will decline markedly. This is a very significant operating efficiency which will free a buyer up to engage in additional analytical purchasing work. * Discontinuance of the stores operation will virtually eliminate the time requirements for supervision of the operation. Similar to item number 4 above , this additional time can be used by purchasing personnel to do a more productive and professional job of purchasing. * Futronics now has 42 operating sites. As the organization continues to grow, delivery of materials to these sites will become more costly and more troublesome to manage. Generally speaking, one would expect the supply houses...
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...“Monitor” software starts from the preparation of manufacturing process stage, and stretched up to financial results achieved. In this paper results achieved throw planning activities will be compared with real results. Analyses of manufacturing problems solutions throw software installed: using of work centre loading simulation possibilities for the optimisation of present and future manufacturing capacity; pre-calculation for future products; rating of subcontractors; EOQ calculation; delivery performance analysis; optimisation of inventory; supply chain management. Theoretical MRP base analysis gives the estimation of final profit sensitivity to different input data. This work will be practically approved on the manufacturing enterprises, under the pressure of real limits of enterprise, with analyses of results achieved. The aim is to find the most optimal solution, which enables to increase profitability Estimation of existing solutions and proposals for the possible improvements in the “Monitor” and “Scala” software will be included in this paper. Key words:...
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...Situation 2. Evaluation of the transportation manager’s proposal 3. Accept the transportation manager’s proposal and halt dividend payouts until bank loan is repaid 4. Results of our recommendation 5. Evaluation of the operations manager’s proposal 6. Cautions to be taken in inventory management Implementation Conclusion Exhibits 3 4 5 5 5 6 6 2 6 7 7 8 8 9 Executive Summary 1. Guna Fibres, Ltd.’s Current Financial Situation Guna Fibres, Ltd. (Guna) is heavily dependent on its bank loan to fund its short-term operations. The terms of All-India Bank & Trust Company’s (All-India) bank loan specify that Guna must reduce its seasonal line of credit to a zero balance for at least 30 days each year. Financial statement forecasts currently indicate that Guna will not be able to clean up its loan by the end of 2012. If Guna does nothing to rectify its financial situation immediately, the lending officer at All-India will refuse to extend any more seasonal credit to Guna. A refusal to extend seasonal credit to Guna will severely affect the company’s operations and may, in the extreme case, force a bankruptcy as the company runs out of cash. Guna is encountering difficulties in its short-term bank loan repayment largely due to lower profit margins in 2011 despite a rapid rise in sales of 18%. The lower profit margins can be attributed to an increase in both operating and interest expenses. 2. Our Recommendation and Analysis Three potential options exist to tackle Guna’s current...
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...Christopher D. Huff 6/21/2016 Case 2 MBA 6368 New Heritage Doll Company Capital Budgeting Introduction The Vice President of the New Heritage Doll Company’s product division, Emily Harris, has decided to present two capital budget improvement proposals to the company’s capital budgeting committee in October. The purpose of the proposals is to provide the capital budgeting committee with a sound option that will make a positive impact on future company growth without hindering current operations and maneuverability. The purpose of this case is to decide which proposal is the most qualified proposal based on financial metrics and company goals. New Heritage Doll History and Profits Before evaluating each proposal it is important to understand the company New Heritage Doll and the toy industry itself so that we can make better assumptions for the case. New Heritage was established in 1985 by Ingrid Beckwith. Her vision for the company and those that purchased her products was simply to foster and grow a child’s ability to positively view their image and increase creativity. Her doll’s had an immediate impact on the industry which increased demand for New Heritage Doll products. Currently, the company receives operating profit from three divisions. The production division, the most asset heavy division, designs and produces dolls and doll accessories. In 2009, operation profit for the product division was 7.7 million. The retail division offers products through websites...
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