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Baba

In: Film and Music

Submitted By snny85
Words 2026
Pages 9
John Deere Component Works
Gears And Special Products Division : Application of ABC information From ABC study on Turning Operations
Team 4 Consultants
5/20/2011
Paul Cusack
Brian Goh
Robert Fletcher
Lynn Chen
Shayne Dube
2
1.0 Executive Summary
Gears and Special Products Division is one of three divisions under John Deere Component Works. The division has been conducting a study on replacing their current traditional cost system with an activity based costing system. The study, which is centered around turning machine operations, indicates that implementing the ABC system across JDCW will allow operations to run more smoothly and efficiently.
However implementing the ABC system alone will not yield the full benefit from the system. Management in the GSP division must utilize the data to make decisions that will result in cost reductions and better product pricing.
Therefore we recommend for GSP management to utilize the data from ABC to :
1) Implement layout changes to enjoy cost reductions through activity elimination
2) Improved process planning and cell arrangements to enjoy cost reductions through efficiency
3) Analyze product mix for efficient manufacturing
Additionally, we recommend GSP to utilize ABC data to prepare more accurate and competitive bid prices and to extend the ABC system to other operations and to the Hydraulics and Drive Train Divisions.
3
Contents
1.0 Executive Summary 2
2.0 Introduction 4
3.0 Layout Changes 5
3.1 Process Planning 6
3.2 Cell Arrangements 7
3.3 Product Mix : Low Value Added Parts 8
3.4 Bidding 9
3.5 Extending ABC 11
3.0 Conclusion 12
4.0 Reference 13
4
2.0 Introduction
John Deere is a US based manufacturing company well-known for the quality of their agricultural machinery. John Deere’s business model encompasses three business activities; the manufacturing of agricultural equipment sold under

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