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Swisher Systems

In: Business and Management

Submitted By Francoliebenberg
Words 351
Pages 2
Intro * Capacitors increase in price – spending too much of their budget * Got a 60% reduction on more expensive parts * Accepted a higher cost on the lower price item * Considered the whole budget and not just one department’s

Company background

* Industrial heating company established 1949 * Specialized in knit and braided heating element * Base of most Swisher Systems products * Produces control devices and heating cable * Know to be the highest quality flexible heat supplier * Leader in the market of flexible heating systems * Holds various patents to hold market share * Competitive advantage stems from it’s high quality * Able to resist higher heat * More flexible

Products

* All products are solutions to industrial heating applications. * 50% standard orders / 50% custom orders * Variability is substantial between product lines * All products perform the same function * 8 essential product lines * Silicone heating blanket * Flexible heating tape * Cloth heating jacket – contributes largest part of revenue * Most expensive to produce * Hand labor and no machines * Custom designed – made to fit (added engineering cost) * Semiconductor, food processing, medical, and petrochemical industry. * Semiconductor – downturn and focus more on the rest! * Competitors offer lower prices but also lower quality

Cost breakdown Revenue 20m 100% Direct material 8m 40% Direct labor 4m 20% Direct overhead 4m 20% Indirect overhead 1m 5% Profit 5m 15% Inventory 12m Turns 2 per year

Purchasing According to Mike Mike’s formulated supplier qualification 1. On time delivery 2. Quality (Material and information) 3. Value 4.

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